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Central Puerto SA (CEPU)
NYSE:CEPU

Central Puerto SA (CEPU) AI Stock Analysis

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Central Puerto SA

(NYSE:CEPU)

Rating:68Neutral
Price Target:
$13.50
▼(-1.39%Downside)
Central Puerto SA shows strong financial performance with significant revenue and net income growth. The stock is experiencing positive momentum, but valuation concerns arise due to a high P/E ratio. The earnings call presents an optimistic outlook despite operational challenges. Overall, the stock demonstrates potential but with caution due to valuation and income volatility.

Central Puerto SA (CEPU) vs. SPDR S&P 500 ETF (SPY)

Central Puerto SA Business Overview & Revenue Model

Company DescriptionCentral Puerto SA (CEPU) is one of Argentina's leading private sector power generation companies. It operates within the energy sector, focusing primarily on the generation and distribution of electricity. The company owns and operates a diverse portfolio of power plants, including thermal, hydroelectric, and renewable energy facilities, providing a significant portion of the electricity consumed in Argentina.
How the Company Makes MoneyCentral Puerto SA generates revenue primarily through the sale of electricity to the Argentine wholesale electricity market. The company's key revenue streams include long-term power purchase agreements (PPAs) with large industrial customers and contracts with the government for energy provision. Central Puerto SA also benefits from capacity payments, which are compensation for maintaining available energy capacity to ensure grid reliability. Additionally, the company engages in the trading of electricity and related financial instruments. Significant partnerships with government entities and adherence to regulatory frameworks also play a crucial role in ensuring a steady revenue flow.

Central Puerto SA Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 15.62%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong financial performance with significant revenue and net income growth. However, challenges remain with declines in hydro and solar generation and increased operational costs. The overall sentiment is cautiously optimistic but acknowledges some operational challenges.
Q1-2025 Updates
Positive Updates
Revenue Growth
Revenues for Q1 2025 amounted to $196 million, increasing 31% year-over-year compared to Q1 2024.
Net Income Surge
Net income for the first three months of 2025 was $80 million, rising 150% year-over-year.
Adjusted EBITDA Increase
Adjusted EBITDA rose 8% year-over-year for Q1 2025 to $90 million.
Electricity Generation Growth
Energy generation amounted to 5.7 terawatt hours, increasing 4% year-over-year.
Strong Cash Position
Total current liquidity amounts to $250 million as of March 31, 2025.
Negative Updates
Hydro Generation Decline
Hydro energy generation from Piedra del Aguila dropped 2% due to reduced river flows.
Decreased Installed Capacity
The country's installed capacity decreased by 1% or 319 megawatts compared to March 31, 2024.
Solar Generation Decline
Solar energy generation reached 78 gigawatt hours, down from 82 gigawatt hours due to node injection restrictions and weather conditions.
Operational Challenges
Higher maintenance expenses and consumption of materials due to higher dispatch led to increased costs.
Company Guidance
During the Central Puerto earnings call for the first quarter of 2025, several key financial metrics were highlighted. The company's installed capacity stood at 6,703 megawatts, with energy generation reaching 5.7 terawatt hours, marking a 4% increase year-over-year. Financial performance showed a strong upward trend, with revenues rising by 31% year-over-year to $196 million, and adjusted EBITDA increasing by 8% to $90 million. Net income saw a significant rise of 150% compared to the same period in the previous year, amounting to $80 million. The company maintained a stable net debt of $132 million, reflecting a net debt ratio to adjusted EBITDA of approximately 0.5 times. Additionally, the call touched on regulatory updates and ongoing projects, including the anticipated completion dates for Brigadier López and San Carlos projects, both expected in 2025.

Central Puerto SA Financial Statement Overview

Summary
Central Puerto SA demonstrates strong revenue growth and profitability with a stable balance sheet. The company shows effective cash management, though there are fluctuations in net income and cash flow growth rates, indicating some financial volatility.
Income Statement
75
Positive
The income statement of Central Puerto SA shows strong profitability with a consistent increase in total revenue over the years, indicating a positive growth trajectory. The gross profit margin and net profit margin are healthy, reflecting efficient cost management. However, the net income has shown significant fluctuations, which could indicate some underlying instability.
Balance Sheet
70
Positive
Central Puerto SA has a solid balance sheet with a favorable equity ratio, indicating strong capitalization. The debt-to-equity ratio is reasonable, suggesting moderate leverage. The company has maintained a strong stockholders' equity position. However, the total debt levels need careful monitoring to prevent potential risks.
Cash Flow
68
Positive
The cash flow statement reveals robust operating cash flows, which support the company's ability to finance its capital expenditures and maintain liquidity. The free cash flow has been positive, indicating efficient cash management. However, fluctuations in free cash flow growth rates highlight potential volatility in cash generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
738.17B313.57B101.39B57.08B38.11B
Gross Profit
291.62B103.40B48.07B27.52B21.29B
EBIT
197.20B338.22B101.56B25.71B20.34B
EBITDA
303.86B259.62B160.56B139.78B64.82B
Net Income Common Stockholders
49.60B148.04B19.04B-647.86M6.89B
Balance SheetCash, Cash Equivalents and Short-Term Investments
244.02B103.31B50.99B20.12B14.36B
Total Assets
2.66T1.40T381.94B200.96B158.39B
Total Debt
380.79B335.18B63.43B42.15B49.74B
Net Debt
376.95B321.71B54.18B41.86B49.46B
Total Liabilities
798.95B546.72B120.59B74.16B73.88B
Stockholders Equity
1.80T834.82B261.16B126.63B84.38B
Cash FlowFree Cash Flow
115.72B115.78B52.29B20.66B7.32B
Operating Cash Flow
258.22B125.61B55.64B26.04B19.29B
Investing Cash Flow
-164.91B-63.58B-31.26B-6.92B-17.29B
Financing Cash Flow
-109.81B-79.75B-16.31B-19.17B-3.68B

Central Puerto SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.69
Price Trends
50DMA
11.60
Positive
100DMA
12.56
Positive
200DMA
11.85
Positive
Market Momentum
MACD
0.69
Negative
RSI
67.19
Neutral
STOCH
74.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEPU, the sentiment is Positive. The current price of 13.69 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 11.60, and above the 200-day MA of 11.85, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 67.19 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CEPU.

Central Puerto SA Risk Analysis

Central Puerto SA disclosed 69 risk factors in its most recent earnings report. Central Puerto SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Central Puerto SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EBEBR
79
Outperform
$17.17B9.498.58%3.79%0.18%99.46%
GNGNE
75
Outperform
$527.78M34.659.13%1.52%-0.18%8.88%
EDEDN
71
Outperform
$1.65B6.3220.57%14.89%
68
Neutral
$2.10B20.625.84%2.61%-9.99%-73.66%
68
Neutral
$5.07B28.183.67%6.08%-12.73%-74.65%
64
Neutral
$8.54B10.244.67%4.36%4.12%-13.19%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CEPU
Central Puerto SA
13.69
4.03
41.72%
EDN
Edenor SA
35.54
18.25
105.55%
GNE
Genie Energy Commo
21.00
6.32
43.05%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
7.47
0.76
11.33%
ENIC
Enel Chile SA
3.66
0.83
29.33%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.