Centrais Elc Braz Pfb B Elbras (EBR.B) AI Stock Analysis

• Market Cap: $19.90B
• Dividend Yield: 7.42%
• Average Volume (3M): 16.71K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.47
• Revenue Growth: 6.41%
• EPS Growth: 37.23%
• Country: US
• Employees: 7,710
• Sector: Utilities
• Sector Strength: 59
• Industry: Regulated Electric
• EPS (TTM): 0.10
• Shares Outstanding: 279,941,000
• 10 Day Avg. Volume: 28,656
• 30 Day Avg. Volume: 16,709
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: 1.54
• 1Y Price Target: $9.00
• Price Target Upside: -0.99% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $9.00 ▼(-0.99% Downside)

The overall stock score is driven by strong financial performance and positive technical indicators. The attractive valuation and positive earnings call sentiment further enhance the score. While regulatory challenges exist, the company's strategic initiatives and financial health position it well for future growth.

Positive Factors

Debt Reduction

Effective debt reduction enhances financial stability and flexibility, allowing the company to allocate resources towards growth initiatives and reduce interest expenses.

Investment Growth

Significant investment growth indicates a commitment to expanding infrastructure and capacity, which can drive long-term revenue growth and strengthen market position.

Strong Profit Margins

Strong profit margins reflect operational efficiency and pricing power, providing a buffer against market fluctuations and supporting sustainable profitability.

Negative Factors

Regulatory Challenges

Regulatory challenges can lead to financial volatility and impact profitability, requiring strategic adjustments to navigate compliance and maintain financial health.

Liquidity Constraints

Liquidity constraints limit the company's ability to invest in growth opportunities and respond to market changes, potentially hindering competitive positioning.

Decline in Transmission Revenue

A decline in transmission revenue can offset gains in other areas, impacting overall revenue growth and requiring strategic focus to stabilize income streams.

Centrais Elc Braz Pfb B Elbras Business Overview & Revenue Model

Company Description

Centrais 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 Money

EBR.B generates revenue primarily through the sale of electricity to its customers. The company's revenue model is built on several key streams, including residential and commercial electricity tariffs, which are regulated by government authorities. Additionally, the company may benefit from long-term contracts and agreements with industrial clients that provide a stable income. Significant partnerships with governmental bodies and other energy providers can also enhance its market position and contribute to earnings. Furthermore, investments in renewable energy projects may open up additional revenue streams as the demand for sustainable energy solutions increases.

Centrais Elc Braz Pfb B Elbras Financial Statement Overview

Summary

Centrais Elc Braz Pfb B Elbras demonstrates strong profitability with high gross and net profit margins, stable balance sheet, and positive cash flow growth trends. However, there is room for improvement in returns on equity and cash conversion efficiency.

Income Statement

The company shows strong profitability with a high gross profit margin of 82.99% and a solid net profit margin of 23.16% in the TTM period. Revenue growth is positive at 4.31%, indicating steady growth. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.60, indicating a balanced approach to leverage. The return on equity is relatively low at 5.49%, suggesting room for improvement in generating returns from equity. The equity ratio is healthy, reflecting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is improving with a significant free cash flow growth rate of 19.77% in the TTM period. The operating cash flow to net income ratio is moderate at 0.56, indicating a decent conversion of net income to cash. However, the free cash flow to net income ratio of 0.78 suggests some constraints in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.68B	40.18B	37.16B	34.07B	37.62B	29.08B
Gross Profit	35.97B	34.23B	18.49B	18.22B	25.66B	15.65B
EBITDA	17.26B	20.73B	11.81B	9.07B	14.08B	11.33B
Net Income	6.63B	10.38B	4.55B	2.65B	5.65B	6.39B
Balance Sheet
Total Assets	274.96B	289.87B	267.06B	270.22B	188.30B	178.97B
Cash, Cash Equivalents and Short-Term Investments	29.39B	29.83B	15.97B	23.62B	16.53B	14.33B
Total Debt	73.47B	78.24B	63.15B	61.15B	46.14B	49.10B
Total Liabilities	156.21B	167.87B	154.59B	159.19B	111.89B	105.22B
Stockholders Equity	118.71B	121.86B	112.33B	110.50B	76.12B	73.48B
Cash Flow
Free Cash Flow	13.65B	9.29B	4.12B	-24.35B	-10.92B	1.80B
Operating Cash Flow	16.13B	12.39B	8.24B	9.28B	-8.23B	4.20B
Investing Cash Flow	-1.66B	-8.66B	827.04M	-28.80B	123.99M	2.44B
Financing Cash Flow	-9.89B	9.80B	-6.76B	30.07B	-8.45B	-6.69B

Centrais Elc Braz Pfb B Elbras Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR.B, the sentiment is Positive. The current price of 9.09 is above the 20-day moving average (MA) of 8.60, above the 50-day MA of 8.00, and above the 200-day MA of 7.32, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 92.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.B.

Centrais Elc Braz Pfb B Elbras Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR.B	79 Outperform	$19.90B	16.88	6.01%	7.42%	6.41%	37.23%
EBR	77 Outperform	$19.90B	15.99	6.01%	7.20%	6.41%	37.23%
TXNM	69 Neutral	$6.00B	29.28	6.36%	2.83%	10.23%	114.67%
KEP	68 Neutral	$17.36B	4.02	15.47%	0.34%	0.44%	124.47%
PCG	67 Neutral	$34.57B	14.11	8.48%	0.55%	-1.30%	-8.34%
Sector *	66 Neutral	$17.51B	18.09	5.60%	3.63%	6.62%	11.55%
PNW	65 Neutral	$10.55B	18.05	8.90%	4.05%	7.47%	-8.53%