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Centrais Elc Braz Pfb B Elbras (EBR.B)
NYSE:EBR.B
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Centrais Elc Braz Pfb B Elbras
(NYSE:EBR.B)
Rating:73Outperform
Price Target:
$9.00
â–²(10.70%Upside)
Centrais Elc Braz Pfb B Elbras (EBR.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.15B
Dividend Yield0.96%
Average Volume (3M)8.97K
Price to Earnings (P/E)10.4
Beta (1Y)0.46
Revenue Growth0.18%
EPS Growth99.46%
CountryUS
Employees7,710
SectorUtilities
Sector Strength74
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.02
Shares Outstanding279,941,000
10 Day Avg. Volume10,799
30 Day Avg. Volume8,972
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)0.73
Price to Sales (P/S)0.00
P/FCF Ratio-24.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside10.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Centrais Elc Braz Pfb B Elbras Business Overview & Revenue Model
Company DescriptionCentrais Elétricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through hydroelectric, thermal, nuclear, wind, and solar plants. As of December 31, 2021, it owned and operated 32 hydroelectric plants with a total installed capacity of 46,295.75 megawatts; nine thermal plants, including coal, and oil and gas power generation units with a total installed capacity of 1,505 megawatts; and two nuclear power plants comprising Angra I with an installed capacity of 640 megawatts and Angra II with an installed capacity of 1,350 megawatts. It also operates 66,556 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio de Janeiro, Brazil.
How the Company Makes MoneyEletrobras generates revenue primarily through the sale of electricity. It operates a substantial portfolio of power plants, including hydroelectric, wind, and solar facilities, which produce electricity that is sold to distribution companies and large industrial consumers. Revenue is also derived from the transmission of electricity across Brazil's extensive grid, where Eletrobras charges fees for the use of its infrastructure. Additionally, the company may engage in strategic partnerships and projects that enhance its capacity and efficiency, contributing to its financial performance.
Centrais Elc Braz Pfb B Elbras Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -6.55%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as successful negotiations with the government, cost reductions, and an increase in energy trading. However, these were offset by challenges such as regulatory impacts on financial results, a mismatch in trading strategy, and a drop in EBITDA. The sentiment is balanced with notable achievements and ongoing challenges.Q1-2025 Updates
Positive Updates
Conciliation and Collective Bargaining Agreement
Eletrobrás successfully concluded negotiations with the federal government and gained approval from the general shareholders assembly. A new collective bargaining agreement was also established to enhance cost and processes.
Partial Sale of Amazon Thermal Plants
Eletrobrás completed a partial sale of Amazon thermal plants, bringing in R$2 billion in cash. This is part of their strategy towards net-zero commitments by 2030.
Operational Cost Reduction
Eletrobrás achieved a 28% reduction in operational costs compared to Q4 2024, and an 8% year-on-year reduction, with significant savings of R$143 million in personnel costs.
Energy Trading Growth
There was a 35% increase in the free market year-on-year, reaching 722 customers. The trading strategy is being adjusted to better reflect market prices.
Sustainability and ESG Initiatives
Eletrobrás launched its 2024 sustainability report, continued its partnership for electric cars, and promoted decarbonization in ports and waterway terminals.
Negative Updates
Regulatory Remeasurement Impact
The regulatory remeasurement of Chesf for transmission led to an adjusted loss of R$81 million, impacting the financial results negatively.
Mismatch in Energy Trading Strategy
Eletrobrás faced a mismatch of prices among regions, particularly in the North and Northeast versus the Southeast, resulting in a significant impact on Q1 results.
Drop in EBITDA
There was a 4% drop in EBITDA, attributed partially to the decline in transmission revenues and lower average sales prices in the Southeast.
Losses in Q1 2025
Eletrobrás reported losses of R$81 million compared to a profit of R$354 million in the previous year, mainly due to the regulatory remeasurement at Chesf.
Company Guidance
During the Eletrobrás conference call discussing the first quarter of 2025, several key metrics and strategic initiatives were highlighted. Eletrobrás reported an adjusted loss of R$81 million, primarily due to a regulatory remeasurement of transmission tariffs and a partial sale of gas supply plants generating R$2 billion in cash. Operational costs saw a significant reduction, with a 28% drop compared to the fourth quarter of 2024 and an 8% decrease year-on-year, yielding R$143 million in personnel savings. Energy trading experienced a 35% increase in the free market year-on-year. The company confirmed a recurrent PMSO figure for 2025, with an annualized cost slightly below R$6 million for the first quarter. Revenue grew by 16%, despite flat regulatory income and a 4% drop in adjusted EBITDA due to decreased transmission revenues. Additionally, Eletrobrás is committed to advancing towards net zero by 2030, marked by the partial sale of thermal power plants and a focus on renewable energy sources such as water, sun, and wind.Centrais Elc Braz Pfb B Elbras Financial Statement Overview
Summary
Centrais Elc Braz Pfb B Elbras shows strong profitability with a gross profit margin of 83.16% and a net profit margin of 23.15%. The balanced debt-to-equity ratio of 0.60 and a robust free cash flow growth rate of 22.71% underscore its solid financial health. However, the moderate ROE of 7.98% and the need for consistent cash flow trends suggest areas for improvement.Income Statement
In the TTM (Trailing-Twelve-Months), Centrais Elc Braz Pfb B Elbras showed a strong gross profit margin of 83.16%, indicating efficient cost management. The net profit margin was also robust at 23.15%, reflecting solid profitability. Revenue growth over the past year was 4.23%, signaling steady expansion. The EBIT margin was 29.36%, and the EBITDA margin stood at 47.73%, both indicating healthy operating performance. Overall, the income statement suggests a sound financial performance with impressive profitability and growth metrics.80
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio of 0.60, implying a balanced approach to leverage. The return on equity (ROE) for the TTM is 7.98%, showing moderate efficiency in generating returns for shareholders. The equity ratio is 43.07%, indicating a strong capital structure with a significant portion of assets financed by equity. The balance sheet reflects stability with a healthy mix of debt and equity, although the ROE could be improved for enhanced shareholder value.75
Positive
Cash Flow
The free cash flow growth rate was 22.71% in the most recent period, demonstrating improved cash generation. The operating cash flow to net income ratio was 1.45, indicating that operating cash flows substantially cover net income, which is a positive indicator of cash flow health. The free cash flow to net income ratio of 1.18 also underscores strong cash conversion. Overall, the cash flow statement shows a solid cash position with good growth, although consistency in cash flow trends can be further enhanced.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.88B | 40.18B | 37.16B | 34.07B | 37.62B | 29.08B |
| Gross Profit | 34.82B | 21.76B | 18.49B | 18.22B | 25.66B | 15.65B |
| EBITDA | 19.99B | 20.73B | 11.81B | 9.07B | 14.08B | 11.33B |
| Net Income | 9.70B | 10.38B | 4.55B | 2.65B | 5.65B | 6.39B |
Balance Sheet | ||||||
| Total Assets | 282.02B | 289.87B | 267.06B | 270.22B | 188.30B | 178.97B |
| Cash, Cash Equivalents and Short-Term Investments | 30.28B | 29.83B | 15.97B | 23.62B | 16.53B | 14.33B |
| Total Debt | 73.45B | 78.24B | 63.15B | 61.15B | 46.14B | 49.10B |
| Total Liabilities | 160.44B | 167.87B | 154.59B | 159.19B | 111.89B | 105.22B |
| Stockholders Equity | 121.49B | 121.86B | 112.33B | 110.50B | 76.12B | 73.48B |
Cash Flow | ||||||
| Free Cash Flow | 11.39B | 9.29B | 4.12B | -24.35B | -10.92B | 1.80B |
| Operating Cash Flow | 14.02B | 12.39B | 8.24B | 9.28B | -8.23B | 4.20B |
| Investing Cash Flow | -6.47B | -8.66B | 827.04M | -28.80B | 123.99M | 2.44B |
| Financing Cash Flow | 3.63B | 9.80B | -6.76B | 30.07B | -8.45B | -6.69B |
Centrais Elc Braz Pfb B Elbras Technical Analysis
Negative
8.13
Price Trends
8.29
Negative
7.94
Negative
7.33
Positive
Market Momentum
-0.05
Positive
40.53
Neutral
34.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR.B, the sentiment is Negative. The current price of 8.13 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 8.29, and above the 200-day MA of 7.33, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBR.B.
Centrais Elc Braz Pfb B Elbras Risk Analysis
Centrais Elc Braz Pfb B Elbras disclosed 61 risk factors in its most recent earnings report. Centrais Elc Braz Pfb B Elbras 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
Centrais Elc Braz Pfb B Elbras Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $17.15B | 9.44 | 8.58% | 7.55% | 0.18% | 99.46% | |
73 Outperform | $17.15B | 10.44 | 8.58% | 0.96% | 0.18% | 99.46% | |
71 Outperform | $1.74B | 17.12 | 5.84% | 3.14% | -9.99% | -73.66% | |
70 Outperform | $5.22B | 25.05 | 8.37% | 2.89% | 10.10% | 149.78% | |
69 Neutral | $17.32B | 4.62 | 13.42% | 0.36% | 0.21% | 628.34% | |
67 Neutral | $16.50B | 17.05 | 4.45% | 3.57% | 4.76% | 6.13% | |
57 Neutral | $4.98B | 27.03 | 3.67% | 0.57% | -12.73% | -74.65% |
* Utilities Sector Average
Performance Comparison
EBR.B
Centrais Elc Braz Pfb B Elbras
7.86
0.39
5.22%
KEP
Korea Electric Power
13.94
6.70
92.54%
TXNM
TXNM Energy
56.34
20.50
57.20%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
7.26
0.46
6.76%
ENIC
Enel Chile SA
3.54
0.77
27.80%
CEPU
Central Puerto SA
11.50
2.46
27.21%
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.