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Centrais Eletricas Brasileiras SA - Eletrobras (EBR)
NYSE:EBR
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Centrais Eletricas Brasileiras SA - Eletrobras
(NYSE:EBR)
77Outperform
Centrais Eletricas Brasileiras SA - Eletrobras (EBR) vs. S&P 500 (SPY)
Market Cap
$15.62B
Dividend Yield2.96%
Average Volume (3M)1.16M
Price to Earnings (P/E)8.0
Beta (1Y)0.78
Revenue Growth2.94%
EPS Growth191.13%
CountryUS
Employees8,328
SectorUtilities
Sector Strength83
IndustryRegulated Utilities
Share Statistics
EPS (TTM)0.83
Shares Outstanding2,021,139,400
10 Day Avg. Volume1,556,929
30 Day Avg. Volume1,160,515
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)8.79
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.80Price Target Upside60.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Centrais Eletricas Brasileiras SA - Eletrobras Business Overview & Revenue Model
Company DescriptionCentrais Elétricas Brasileiras SA engages in the production and dissemination of electricity. It operates through the following segments: Generation, Transmission, and Distribution. The Generation segment refers to the electric power generation including hydroelectric, thermal, and nuclear power plants. The Transmission segment refers to transmission of electric power in Brazil. The Distribution segment is responsible for power distribution in six states of the North and Northeast regions of Brazil. The company was founded on June 11, 1962 by Getulio Dornelles Vargas and is headquartered in Rio de Janeiro, Brazil.
How the Company Makes MoneyEletrobras generates revenue through multiple streams, primarily focusing on electricity generation and transmission. As one of the largest power producers in Brazil, it earns income by selling electricity generated from its hydropower, thermal, and nuclear plants to distribution companies, industrial consumers, and other market participants. The company is also involved in the transmission of electricity, charging fees for the use of its extensive network of transmission lines. Additionally, Eletrobras benefits from government contracts and partnerships that support infrastructure projects and renewable energy initiatives. These diversified revenue sources enable Eletrobras to maintain its position as a key player in the Brazilian energy market.
Centrais Eletricas Brasileiras SA - Eletrobras Financial Statement Overview
Summary
Eletrobras demonstrates strong financial health with consistent revenue growth and improved profitability margins. The balance sheet reflects a stable capital structure with prudent leverage. Cash flow generation is solid, though the company should monitor cash flow fluctuations.Income Statement
Eletrobras has shown a solid revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue increase of 2.47% over the previous year. The gross profit margin remains strong at 45.7%, and the net profit margin significantly improved to 26.7% in the TTM, indicating enhanced profitability. However, the gross profit margin has slightly decreased from previous levels. The company has successfully increased its EBIT and EBITDA margins, reflecting improved operational efficiency.85
Very Positive
Balance Sheet
The company maintains a stable financial position with a reasonable debt-to-equity ratio of 0.60, suggesting a balanced leverage strategy. The return on equity (ROE) has improved to 8.38% in the TTM, demonstrating better utilization of shareholder funds. The equity ratio stands at a healthy 43.3%, showcasing solid capital structure. Although the total debt has increased, the equity growth has kept leverage at manageable levels.80
Positive
Cash Flow
Eletrobras has shown a robust recovery in free cash flow, which increased by 7.92% in the TTM. The operating cash flow to net income ratio is favorable at 0.82, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio stands at 0.44, showing a solid cash conversion. However, fluctuations in investing and financing cash flows indicate potential short-term volatility.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 38.08B | 37.16B | 34.07B | 37.62B | 29.08B | 27.73B | Gross Profit |
| 17.41B | 18.49B | 18.22B | 25.66B | 15.65B | 20.95B | EBIT |
| 9.73B | 11.02B | 5.69B | 13.40B | 6.94B | 5.76B | EBITDA |
| 16.96B | 11.81B | 9.07B | 14.08B | 11.33B | 10.59B | Net Income Common Stockholders |
| 10.16B | 4.55B | 2.65B | 5.65B | 6.39B | 7.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.01B | 15.97B | 23.62B | 16.53B | 14.33B | 16.69B | Total Assets |
| 181.21B | 267.06B | 270.22B | 188.30B | 178.97B | 177.47B | Total Debt |
| 56.31B | 63.15B | 61.15B | 46.14B | 49.10B | 49.59B | Net Debt |
| 55.73B | 50.10B | 49.72B | 45.94B | 48.82B | 49.26B | Total Liabilities |
| 125.20B | 154.59B | 159.19B | 111.89B | 105.22B | 106.07B | Stockholders Equity |
| 55.54B | 112.33B | 110.50B | 76.12B | 73.48B | 70.91B |
| Cash Flow | Free Cash Flow | ||||
| 4.45B | 4.12B | -24.35B | -10.92B | 1.80B | -2.11B | Operating Cash Flow |
| 8.36B | 8.24B | 9.28B | -8.23B | 4.20B | -86.33M | Investing Cash Flow |
| -2.95B | 819.42M | -28.80B | 123.99M | 2.44B | 3.27B | Financing Cash Flow |
| -4.74B | -6.76B | 30.07B | -8.45B | -6.69B | -3.39B |
Centrais Eletricas Brasileiras SA - Eletrobras Technical Analysis
Positive
6.73
Price Trends
6.17
Positive
6.11
Positive
6.49
Positive
Market Momentum
0.14
Negative
63.70
Neutral
67.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR, the sentiment is Positive. The current price of 6.73 is above the 20-day moving average (MA) of 6.57, above the 50-day MA of 6.17, and above the 200-day MA of 6.49, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 67.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.
Centrais Eletricas Brasileiras SA - Eletrobras Risk Analysis
Centrais Eletricas Brasileiras SA - Eletrobras disclosed 61 risk factors in its most recent earnings report. Centrais Eletricas Brasileiras SA - Eletrobras 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 Eletricas Brasileiras SA - Eletrobras Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $91.39B | 20.71 | 9.10% | 3.53% | 4.46% | 54.09% | |
77 Outperform | $98.82B | 22.56 | 13.61% | 3.20% | 5.83% | 10.23% | |
77 Outperform | $15.62B | 8.02 | 8.91% | 2.96% | 2.94% | 191.13% | |
73 Outperform | $55.68B | 19.22 | 11.37% | 3.37% | 2.76% | 31.53% | |
73 Outperform | $152.28B | 21.95 | 14.24% | 2.85% | 26.91% | -6.43% | |
65 Neutral | $11.99B | 15.63 | 6.50% | 4.40% | 7.00% | 0.55% | |
63 Neutral | $8.53B | 4.99 | 39.65% | 5.78% | -3.14% | 564.25% |
* Utilities Sector Average
Performance Comparison
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
6.73
-1.81
-21.19%
AEP
American Electric Power
102.96
24.14
30.63%
DUK
Duke Energy
116.64
25.13
27.46%
NEE
NextEra Energy
72.92
15.01
25.92%
SO
Southern Co
88.68
21.62
32.24%
AES
AES
11.83
-2.53
-17.62%
Centrais Eletricas Brasileiras SA - Eletrobras Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: 6.83% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial positioning and operational improvements, despite facing some cost volatility and market challenges.Highlights
Strong Cash Position and Funding
Raised over BRL22 billion in 2024, ending with EUR37 million in cash, providing a comfortable position for volatility and supporting CapEx growth.
Reduction in Compulsory Loan Liability
Reduced liability by over BRL1 billion, decreasing off-balance debts by another BRL750 million.
Operational Efficiency and Cost Management
PMSO expected to decrease below BRL7 million in 2024 and close to BRL5.5 million in 2025 due to operational efficiency improvements.
Merger with Furnas
Positive impact from the merger with Furnas, contributing to improved results.
ESG Progress
Obtained permission to operate the Coxilha Negra wind farm and published more transparency reports.
Lowlights
Volatility in Operational Costs
Operational expenses showed volatility, with a significant 7% increase over Q2 and 1% over last year.
Challenges in Collective Bargaining Agreement
Some employees outside the agreement, impacting cost management and potential operational efficiency.
Market Volatility and Energy Pricing
Volatility in energy prices due to changing market conditions, affecting revenue streams and requiring careful management.
Company Guidance
In the Q3 2024 earnings call for Eletrobras, several key metrics and strategic priorities were outlined. The company aims to reduce its PMSO from below BRL7 million in 2024 to approximately BRL5.5 million by 2026, indicating a strong focus on operational efficiency. Eletrobras plans to leverage its robust cash position, bolstered by raising over BRL22 billion in 2023, to support substantial growth in capital expenditures. The merger with Furnas has already positively impacted results, and the company is focusing on streamlining operations to maintain a recurring operational expense level of 1.7% or BRL1.7 million. Additionally, Eletrobras has reduced its liability by over BRL1 million, with a notable decrease in off-balance debts by BRL750 million. The company is also making strides in its ESG agenda, including the operation of the Coxilha Negra wind farm and establishing a Social and Environmental Commission. The management reiterated its commitment to enhancing competitiveness in energy auctions and fostering long-term customer relationships, despite the volatility in the energy market.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.