Italian stock alert

ITALY

Afternoon Alert: Enel increases 0.9%, leads Utility sector higher 20 September 2018 14:08 CEST

NEWS BITES - EUROPE

Enel (MI:ENEL) has increased 0.9% to trade at EUR4.55 vs. the Utility sector which strengthened 167.7 points (or 0.7%) to 24,839.7. Representing a weighting of about 39.2% of the sector, the stock accounted for 51.1% of today's gain. Trading volume was 1.1 times average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.02 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price increased 0.4% in the last week and lifted 3.2% in the last month.

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

Undervaluation:

+ Return on Assets 2.4% [0.4%]

+ Dividend yield of 2.9% [2.4%]

+ Return on Capital Employed 7.5% [6.7%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 17.9%.

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued.

Note

Enel today is at a discount of 16.4% to the 12-month high of EUR5.44 on 08 Dec, 2017. It is at a premium of 7.8% to the 12-month low of EUR4.22 on 03 Sep, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low ten times, pointing to a significant downtrend.

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.

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

Overvaluation:

Price to Book of 8.7 [5.1]

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

ISIN: IT0003128367

PermID: 4295875798

Source: www.BuySellSignals.com