Central Puerto SA (CEPU) AI Stock Analysis

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Central Puerto SA

(NYSE:CEPU)

Rating:71Outperform

Price Target:

$13.50

▲(11.85%Upside)

Central Puerto SA's strong financial performance and positive earnings call are the primary drivers of the overall score. The company shows solid revenue and net income growth, with effective cash flow management. However, mixed technical indicators and moderate valuation metrics slightly temper the score.

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

Market Cap

$1.88B

Dividend Yield2.93%

Average Volume (3M)322.66K

Price to Earnings (P/E)18.3

Beta (1Y)0.83

Revenue Growth-9.99%

EPS Growth-73.66%

CountryUS

Employees865

SectorUtilities

Sector Strength77

IndustryRegulated Electric

Share Statistics

EPS (TTM)0.52

Shares Outstanding151,402,220

10 Day Avg. Volume254,698

30 Day Avg. Volume322,660

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.61

Price to Sales (P/S)0.00

P/FCF Ratio3.02

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.00

Price Target Upside7.71% Upside

Rating ConsensusHold

Number of Analyst Covering0

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: 1.94%|

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 a strong financial position characterized by solid revenue growth and profitability. However, there is some volatility in net income and free cash flow, necessitating careful management of debt levels.

Income Statement

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

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

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
738.17B	313.57B	101.39B	57.08B	38.11B
	Gross Profit
291.62B	103.40B	48.07B	27.52B	21.29B
	EBIT
197.20B	338.22B	101.56B	25.71B	20.34B
	EBITDA
303.86B	259.62B	160.56B	139.78B	64.82B
	Net Income Common Stockholders
49.60B	148.04B	19.04B	-647.86M	6.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
244.02B	103.31B	50.99B	20.12B	14.36B
	Total Assets
2.66T	1.40T	381.94B	200.96B	158.39B
	Total Debt
380.79B	335.18B	63.43B	42.15B	49.74B
	Net Debt
376.95B	321.71B	54.18B	41.86B	49.46B
	Total Liabilities
798.95B	546.72B	120.59B	74.16B	73.88B
	Stockholders Equity
1.80T	834.82B	261.16B	126.63B	84.38B
Cash Flow		Free Cash Flow
115.72B	115.78B	52.29B	20.66B	7.32B
	Operating Cash Flow
258.22B	125.61B	55.64B	26.04B	19.29B
	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

Negative

Last Price12.07

Price Trends

50DMA

11.85

Positive

100DMA

12.24

Negative

200DMA

12.13

Negative

Market Momentum

MACD

-0.01

Positive

RSI

43.36

Neutral

STOCH

31.92

Neutral

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 12.07 is below the 20-day moving average (MA) of 12.80, above the 50-day MA of 11.85, and below the 200-day MA of 12.13, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 is Neutral, 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR	78 Outperform	$17.74B	9.79	8.58%	7.28%	0.18%	99.46%
CEPU	71 Outperform	$1.88B	18.34	5.84%	2.93%	-9.99%	-73.66%
ENIC	69 Neutral	$5.06B	27.57	3.67%	0.56%	-12.73%	-74.65%
GNE	67 Neutral	$682.68M	44.82	9.13%	1.18%	-0.18%	8.88%
Sector *	64 Neutral	$8.56B	10.32	4.24%	4.82%	4.06%	-12.76%
EDN	64 Neutral	$1.36B	5.10	20.57%	―	14.89%	―

* Utilities Sector Average

Performance Comparison

CEPU

Central Puerto SA

11.88

2.62

28.29%

EDN

Edenor SA

28.66

11.95

71.51%

GNE

Genie Energy Commo

25.19

11.14

79.29%

EBR

Centrais Eletricas Brasileiras SA - Eletrobras

7.56

1.35

21.74%

ENIC

Enel Chile SA

3.56

0.92

34.85%

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.