Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

Sixty percent of Endesa Chile's generation capacity is hydro, conferring it a cost advantage over thermal power plants.
Expansion projects should help fuel strong growth during the next decade, driven by fast-growing emerging economies with increasing energy consumption needs.
Endesa Chile's geographic diversification across South America helps mitigate country-specific risk. Read more 

Bears Say

Endesa Chile's complex ownership structure effectively gives Endesa Spain (and Enel) control of the board, which puts minority shareholders in a relatively weak position.
During dry seasons, Endesa Chile has to buy high-cost spot electricity to supplement its large hydroelectric generation fleet and meet contractual obligations.
Delays in the company's expansion program during the next decade could stunt earnings growth. Read more 

Management

The key stewardship consideration for Endesa Chile's ADR shareholders is the complex ownership structure that leaves them with just 5% of total shares outstanding. Enel, through Endesa Spain and Enersis, ultimately controls Endesa Chile's board of directors   Read more 

Profile

Endesa Chile generates electricity for customers in Chile, Argentina, Brazil, Colombia, and Peru. About two thirds of its 15,000 megawatts of generation capacity is from   Read more 

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