Enel Generacion Costanera SA (CECO2.BA) fair value

ACCE thesis

Enel Generacion Costanera operates thermal and hydro power plants in Argentina and sells electricity into the wholesale market, which in practice means it is paid for capacity and output under a regulated framework rather than selling retail. The company's edge is its generation base in a market where new supply is scarce, so incumbents with running plants earn returns that new entrants cannot easily replicate. Reported revenue growth of 718% and a 31.4% ROE reflect a sharp reset in Argentine tariffs and inflation accounting, so the headline rate should be read as a repricing rather than sustainable volume growth. At a trailing P/E of 5.0 and a 28.6% operating margin, the stock screens cheap against its own earnings, though the forward multiple is not available and the currency and regulatory risk that comes with an Argentine utility is substantial. The composite score of 83/100 justifies a deeper look at tariff trajectory and cash conversion, not a conclusion on value.