Enel Chile Operating Margin vs. Return On Equity
| ENELCHILE | CLP 55.80 0.20 0.36% |
For Enel Chile profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enel Chile to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enel Chile SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enel Chile's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enel Chile SA over time as well as its relative position and ranking within its peers.
Enel |
Enel Chile SA Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Enel Chile's current stock value. Our valuation model uses many indicators to compare Enel Chile value to that of its competitors to determine the firm's financial worth. Enel Chile SA is one of the top stocks in operating margin category among its peers. It also is one of the top stocks in return on equity category among its peers reporting about 0.75 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Enel Chile SA is roughly 1.34 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Enel Chile by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Enel Chile's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Enel Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Enel Chile |
| = | 0.09 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Enel Chile |
| = | 0.0636 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enel Return On Equity Comparison
Enel Chile is currently under evaluation in return on equity category among its peers.
Enel Chile Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Enel Chile, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enel Chile will eventually generate negative long term returns. The profitability progress is the general direction of Enel Chile's change in net profit over the period of time. It can combine multiple indicators of Enel Chile, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Enel Chile S.A., an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company was founded in 2016 and is headquartered in Santiago, Chile. ENEL CHILE operates under Utilities - Regulated Electric classification in Exotistan and is traded on Commodity Exchange. It employs 2095 people.
Enel Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Enel Chile. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Enel Chile position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Enel Chile's important profitability drivers and their relationship over time.
Use Enel Chile in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enel Chile position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enel Chile will appreciate offsetting losses from the drop in the long position's value.Enel Chile Pair Trading
Enel Chile SA Pair Trading Analysis
The ability to find closely correlated positions to Enel Chile could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enel Chile when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enel Chile - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enel Chile SA to buy it.
The correlation of Enel Chile is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enel Chile moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enel Chile SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enel Chile can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Enel Chile position
In addition to having Enel Chile in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Warren Buffett Holdings Thematic Idea Now
Warren Buffett Holdings
A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Warren Buffett Holdings Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Enel Stock
When determining whether Enel Chile SA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Enel Chile's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Enel Chile Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Enel Chile Sa Stock:Check out Investing Opportunities. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
To fully project Enel Chile's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enel Chile SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Enel Chile's income statement, its balance sheet, and the statement of cash flows.