Central Puerto SA (CEPU) AI Stock Analysis

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Central Puerto SA

(NYSE:CEPU)

Rating:65Neutral

Price Target:

$12.00

▲(8.11% Upside)

Central Puerto's overall stock score reflects strong financial performance and strategic project progress, offset by bearish technical indicators and challenges in recent earnings. The company's valuation is moderate, with a reasonable dividend yield. The most significant factors are the robust financial health and strategic initiatives, while technical weakness and recent operational challenges weigh on the score.

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

Market Cap

$1.67B

Dividend Yield3.19%

Average Volume (3M)222.14K

Price to Earnings (P/E)10.0

Beta (1Y)0.80

Revenue Growth-9.20%

EPS Growth-53.99%

CountryUS

Employees865

SectorUtilities

Sector Strength78

IndustryRegulated Electric

Share Statistics

EPS (TTM)0.50

Shares Outstanding151,402,220

10 Day Avg. Volume234,916

30 Day Avg. Volume222,141

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.17

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit<0.01

Enterprise Value/Ebitda<0.01

Forecast

1Y Price Target

$12.00

Price Target Upside8.11% Upside

Rating ConsensusHold

Number of Analyst Covering0

Central Puerto SA Business Overview & Revenue Model

Company DescriptionCentral Puerto SA (CEPU) is a leading energy company based in Argentina, primarily engaged in the generation and commercialization of electricity. It operates a diversified portfolio of power plants, including thermal and renewable energy facilities, catering to both the national and regional electricity markets. CEPU is focused on providing reliable energy solutions while investing in sustainable practices and technologies to enhance its operational efficiency and environmental responsibility.

How the Company Makes MoneyCentral Puerto SA generates revenue primarily through the sale of electricity to wholesale and retail customers in Argentina. The company operates under various contracts and tariff structures, including long-term power purchase agreements (PPAs) with government entities and private companies. Key revenue streams include the sale of energy generated from its thermal plants, which predominantly utilize natural gas, as well as from renewable sources such as wind and solar power. Additionally, CEPU benefits from ancillary services and capacity payments, which provide further income based on its ability to deliver electricity during peak demand periods. Strategic partnerships with local and international energy firms, along with participation in government renewable energy programs, also contribute to its revenue growth and market presence.

Central Puerto SA Earnings Call Summary

Earnings Call Date:Aug 11, 2025

(Q2-2025)

% Change Since: -11.90%|

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Central Puerto's progress in strategic projects and maintaining a strong financial position. However, the decrease in adjusted EBITDA and generation volumes, along with unplanned maintenance costs, posed significant challenges.

Q2-2025 Updates

Positive Updates

Revenue Increase Despite Challenges

Revenues in Q2 were $179.6 million, an increase of 7% compared to the same quarter of the previous year, despite a decrease of 8% compared to the previous quarter.

Significant Project Progress

Brigadier Lopez combined cycle and San Carlos solar project are at approximately 80% completion with expected commercial operation before year-end, adding 155 megawatts of installed capacity.

Strong Financial Position

Net leverage ratio of 0.56x the last 12-month adjusted EBITDA, reflecting a solid financial position with cash and cash equivalents balance of $235 million.

Ongoing Growth Strategy

Central Puerto is actively engaged in increasing capacity and participating in new projects including Brigadier Lopez, San Carlos, and Alamitos projects, as well as battery storage tenders.

Negative Updates

Decrease in Adjusted EBITDA

Adjusted EBITDA for Q2 was $61.4 million, a 32% decrease compared to the previous quarter.

Significant Decrease in Generation Volumes

Total generation volumes were 4,372 gigawatt hours, a 24% decrease compared to the first quarter and a 12% decline year-on-year, primarily due to scheduled upgrades and maintenance.

Unplanned Maintenance Costs

Unplanned maintenance in Central Costanera's boilers resulted in additional costs of approximately $18-$20 million, impacting revenues.

Company Guidance

In Central Puerto's second quarter of 2025 earnings call, several key metrics and operational updates were discussed. The adjusted EBITDA for the quarter was reported at $61.4 million, marking a 32% decrease from the previous quarter and a 35% increase year-on-year. Total generation volumes were 4,372 gigawatt hours, which is a 24% decrease from the prior quarter and a 12% decline from the same period last year, largely due to scheduled maintenance and upgrades at the Central Costanera and Central Puerto plants. Revenues for the quarter stood at $179.6 million, down 8% from the previous quarter but up 7% year-over-year, with 89.6% of these revenues stemming from energy sales. The quarter saw capital expenditures of $102.4 million, primarily towards the 155 megawatts of additional capacity under development, including projects like Brigadier Lopez and San Carlos, expected to be completed by year-end. Financially, the company maintained a solid position with a net leverage ratio of 0.56x the last 12-month adjusted EBITDA. On the regulatory front, spot prices in pesos were adjusted for inflation, contributing to a compounded 5.1% increase for the quarter. The company also addressed ongoing projects and future plans, including the Alamitos wind project and participation in the battery storage tender process.

Central Puerto SA Financial Statement Overview

Summary

Central Puerto SA shows strong revenue growth and operational efficiency with solid margins and a stable balance sheet. However, the low return on equity and declining free cash flow growth rate indicate areas for improvement in profitability and cash flow management.

Income Statement

Very Positive

Central Puerto SA demonstrates strong revenue growth with an 8.04% increase in TTM, supported by a solid gross profit margin of 39.29%. The net profit margin is moderate at 6.06%, indicating efficient cost management. EBIT and EBITDA margins are robust at 29.67% and 43.38%, respectively, showcasing operational efficiency. However, the net profit margin has decreased compared to the previous year, suggesting room for improvement in profitability.

Balance Sheet

Positive

The company maintains a healthy debt-to-equity ratio of 0.21, indicating prudent leverage use. The equity ratio stands at 69.83%, reflecting a strong equity base. However, the return on equity is relatively low at 0.01%, suggesting limited profitability relative to shareholder equity. The balance sheet shows stability, but there is potential for enhancing returns on equity.

Cash Flow

Positive

Operating cash flow to net income ratio is 0.69, indicating adequate cash generation relative to net income. Free cash flow to net income ratio is 0.45, showing a reasonable conversion of income to free cash flow. However, the free cash flow growth rate is negative at -24.07%, highlighting a decline in cash flow generation, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	820.20B	738.17B	313.57B	101.39B	111.19B	57.52B
Gross Profit	301.74B	291.62B	103.40B	48.07B	53.53B	31.88B
EBITDA	487.68B	303.86B	259.62B	186.75B	66.76B	36.59B
Net Income	179.74B	49.60B	148.04B	59.29B	-1.45B	10.40B
Balance Sheet
Total Assets	3.20T	2.66T	1.40T	381.94B	200.96B	158.39B
Cash, Cash Equivalents and Short-Term Investments	258.13B	244.02B	103.31B	158.78B	39.20B	21.67B
Total Debt	439.38B	380.79B	335.18B	63.43B	42.15B	49.74B
Total Liabilities	910.91B	798.95B	546.72B	120.59B	74.16B	73.88B
Stockholders Equity	2.23T	1.80T	834.82B	813.26B	246.66B	84.38B
Cash Flow
Free Cash Flow	133.07B	115.72B	115.78B	52.29B	20.66B	7.32B
Operating Cash Flow	345.81B	258.22B	125.61B	55.64B	26.04B	19.29B
Investing Cash Flow	-276.02B	-164.91B	-138.45B	-211.98B	-42.00B	-26.10B
Financing Cash Flow	-47.69B	-109.81B	-177.29B	-110.58B	-116.27B	-5.56B

Central Puerto SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price11.10

Price Trends

50DMA

11.86

Negative

100DMA

11.80

Negative

200DMA

12.57

Negative

Market Momentum

MACD

-0.22

Positive

RSI

36.46

Neutral

STOCH

8.55

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEPU, the sentiment is Negative. The current price of 11.1 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 11.86, and below the 200-day MA of 12.57, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 8.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR	77 Outperform	$17.67B	14.28	6.01%	7.86%	6.41%	37.23%
Sector *	67 Neutral	$17.69B	18.14	5.29%	3.53%	7.33%	12.21%
CEPU	65 Neutral	$1.67B	9.96	9.38%	3.19%	-9.20%	-53.99%
EDN	65 Neutral	$1.18B	3.92	21.45%	―	11.85%	―
ENIC	61 Neutral	$4.73B	32.75	2.89%	6.59%	-19.56%	-83.31%
GNE	54 Neutral	$413.45M	48.63	5.44%	1.91%	3.75%	4.61%

* Utilities Sector Average

Performance Comparison

CEPU

Central Puerto SA

11.02

2.52

29.65%

EDN

Edenor SA

24.35

6.55

36.80%

GNE

Genie Energy Commo

15.70

-0.67

-4.09%

EBR

Centrais Eletricas Brasileiras SA - Eletrobras

7.74

0.68

9.63%

ENIC

Enel Chile SA

3.48

0.78

28.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025