Italian stock alert

ITALY

CLOSING UPDATE: Enel decreases 0.6%, led Utility sector lower all day 18 January 2018 18:15 CET

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's Italian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Enel, Italy's largest utility company by market capitalisation, has decreased 0.6% to trade at EUR5.36 vs. the Utility sector which weakened 149.3 points (or 0.5%) to 27,309.3. Representing a weighting of about 42.0% of the sector, the stock accounted for 43.3% of today's loss. Trading volume was 86% of average at the end of the day. Compared with the FTSE MIB Index which rose 116.1 points (or 0.5%) in the day, this represented a relative price change of -1.0%.

Technical indicators complementing today's significant downtrend:

+ The price decreased 1.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings of 20.6 [18.1]

+ Price to Book of 10.2 [8.3]

+ Dividend yield of 1.7% [1.9%]

+ Year-on-Year Earnings Growth of 13% [21.6%]

Other Bearish Signals include:

+ Net profit margin has averaged 3.5% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Note

Bullish Signals:

The 4.1% discount to 12-month high of EUR5.59 against the 42.9% premium to 12-month low of EUR3.75 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high twelve times, pointing to a significant uptrend.

The company is cash rich with Cash to Market Capitalisation at 15.2%.

Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued.

The Brand Value represents 4.7% of the estimated Enterprise Value of EUR110.7 billion (US$134.9 billion).

As per the Du Pont analysis, Return on Equity of 14.4% is better than sector average of 9.5%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Sales of 0.8 [1.0]

Return on Equity 14.4% [9.5%]

TODAY'S ALERTS

Afternoon Alert: Enel decreases 0.6%, leads Utility sector lower

18 January 2018 13:07 CET

Enel (MI:ENEL) has decreased 0.6% to trade at EUR5.36 vs. the Utility sector which weakened 201.6 points (or 0.7%) to 27,256.9. Representing a weighting of about 42.0% of the sector, the stock accounted for 32.1% of today's loss.

Morning Alert: Enel decreases 0.4%, leads Utility sector lower

18 January 2018 11:07 CET

Enel (MI:ENEL) has decreased 0.4% to trade at EUR5.37 vs. the Utility sector which weakened 149.6 points (or 0.5%) to 27,308.9. Representing a weighting of about 42.0% of the sector, the stock accounted for 28.9% of today's loss. Trading volume was 1.3 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Enel increases further 0.2%, led Utility sector higher

17 January 2018 18:16 CET

Enel, Italy's largest utility company by market capitalisation, has increased 0.4% to trade at EUR5.39 vs. the Utility sector which strengthened 92.3 points (or 0.3%) to 27,458.6. Representing a weighting of about 42.0% of the sector, the stock accounted for 46.0% of today's gain. The shares have outperformed 84% of the market in the past week. Trading volume was 79% of average at the end of the day. Compared with the FTSE MIB Index which rose 19.4 points (or 0.08%) in the day, this represented a relative price increase of 0.3%.

Afternoon Alert: Enel increases 0.2%, leads Utility sector higher

17 January 2018 13:07 CET

Enel (MI:ENEL) has increased 0.2% to trade at EUR5.38 vs. the Utility sector which strengthened 61.1 points (or 0.2%) to 27,427.4. Representing a weighting of about 41.9% of the sector, the stock accounted for 35.5% of today's gain. The shares have outperformed 82% of the market in the past week. Trading volume was 75% of average so far today.

Enel (MI:ENEL; BIT:ENEL; IM:ENEL)

ISIN: IT0003128367

PermID: 4295875798

Source: www.BuySellSignals.com