Enersis SA Stock Upgraded (ENI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Enersis (NYSE: ENI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 161.5% when compared to the same quarter one year prior, rising from $225.16 million to $588.72 million.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • 37.13% is the gross profit margin for ENERSIS SA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.02% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $1,175.56 million or 5.22% when compared to the same quarter last year. Despite an increase in cash flow, ENERSIS SA's cash flow growth rate is still lower than the industry average growth rate of 44.62%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, ENERSIS SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

Enersis S.A., an electric utility company, through its subsidiaries and jointly-controlled entities, is engaged in the generation, transmission, and distribution of electricity in Chile, Brazil, Colombia, Peru, and Argentina. Enersis has a market cap of $15.49 billion and is part of the utilities sector and utilities industry. Shares are up 5.8% year to date as of the close of trading on Friday.

You can view the full Enersis Ratings Report or get investment ideas from our investment research center.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

3 Stocks Underperforming Today In The Utilities Sector

3 Stocks Underperforming Today In The Utilities Sector

CIG, ENI And EXC, 3 Utilities Stocks Pushing The Sector Lower

CIG, ENI And EXC, 3 Utilities Stocks Pushing The Sector Lower

Why You Should Be Bullish on Chile's Economy and Invest in These 3 Stocks

Why You Should Be Bullish on Chile's Economy and Invest in These 3 Stocks

Enersis (ENI) Highlighted As Weak On High Volume

Enersis (ENI) Highlighted As Weak On High Volume

3 Stocks Dragging The Utilities Sector Downward

3 Stocks Dragging The Utilities Sector Downward