Centrais Eletricas Brasileiras SA - Eletrobras (EBR) AI Stock Analysis

• Market Cap: $19.58B
• Dividend Yield: 7.36%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.55
• Revenue Growth: 6.41%
• EPS Growth: 37.23%
• Country: US
• Employees: 7,710
• Sector: Utilities
• Sector Strength: 57
• Industry: Regulated Electric
• EPS (TTM): 0.10
• Shares Outstanding: 2,021,139,400
• 10 Day Avg. Volume: 1,927,671
• 30 Day Avg. Volume: 1,641,775
• 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: 1.26
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $8.50
• Price Target Upside: 0.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $8.50 ▲(0.12% Upside)

Eletrobras receives a strong overall score due to its solid financial performance, favorable valuation, and positive technical indicators. The company's strategic initiatives and significant debt reduction further enhance its outlook. While there are some challenges, such as regulatory impacts on transmission revenue, the overall sentiment remains positive.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial stability and lowers interest expenses, improving long-term cash flow and investment capacity.

Investment Growth

Increased investment signals commitment to growth and expansion, potentially leading to enhanced operational capacity and competitive positioning.

Generation Margin Growth

Rising generation margins indicate improved efficiency and profitability in core operations, supporting sustainable revenue growth.

Negative Factors

Transmission Revenue Decline

Declining transmission revenue can pressure overall profitability and limit growth in a key segment, impacting long-term financial health.

Reported Loss

Regulatory-driven losses highlight vulnerability to policy changes, potentially affecting future earnings stability and predictability.

Liquidity Challenges

Reduced liquidity in the energy market can hinder trading strategies and revenue generation, posing risks to cash flow and operational flexibility.

Centrais Eletricas Brasileiras SA - Eletrobras Business Overview & Revenue Model

Company Description

Centrais Eletricas Brasileiras SA - Eletrobras (EBR) is a Brazilian government-owned electric utility company, primarily engaged in the generation, transmission, and distribution of electricity. As one of the largest power generation companies in Latin America, Eletrobras plays a crucial role in Brazil's energy sector, operating in various segments including hydroelectric, thermal, and renewable energy sources. The company focuses on delivering reliable energy services while also participating in energy trading and providing energy efficiency solutions.

How the Company Makes Money

Eletrobras generates revenue through multiple streams, primarily from the sale of electricity generated from its diverse portfolio of power plants, which include hydroelectric, thermal, and renewable energy facilities. The company earns money by selling electricity to both residential and commercial customers, as well as through long-term power purchase agreements with other utilities and energy distributors. Additionally, Eletrobras benefits from its transmission and distribution operations, which involve charging fees for the transport of electricity through its grid infrastructure. The company also engages in energy trading to capitalize on market fluctuations. Significant partnerships with governmental agencies and private sector entities contribute to its earnings, as do investments in renewable energy projects aimed at meeting Brazil's growing energy demands while adhering to sustainability goals.

Centrais Eletricas Brasileiras SA - Eletrobras Financial Statement Overview

Summary

Eletrobras demonstrates a solid financial performance with strong revenue growth and profitability. The company maintains a healthy balance sheet with manageable debt levels. Cash flow generation is improving, although there is room for enhancing free cash flow conversion. Overall, Eletrobras is well-positioned in the regulated electric industry, with opportunities to optimize returns and cash flow efficiency.

Income Statement

Eletrobras shows a strong income statement with consistent revenue growth and robust profit margins. The TTM data indicates a gross profit margin of 82.99% and a net profit margin of 23.16%, both of which are impressive. However, the net profit margin has decreased from the previous year, indicating some pressure on profitability. Revenue growth rate is positive at 4.31%, showing a steady upward trajectory.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.60, indicating moderate leverage. The return on equity (ROE) is 5.49%, which is relatively low, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a free cash flow growth rate of 19.77% in the TTM period. The operating cash flow to net income ratio is 0.56, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio of 0.78 indicates some constraints in converting income 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	21.66B	21.76B	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 Eletricas Brasileiras SA - Eletrobras Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.49
• 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, the sentiment is Positive. The current price of 8.49 is above the 20-day moving average (MA) of 8.05, above the 50-day MA of 7.39, and above the 200-day MA of 6.62, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.

Centrais Eletricas Brasileiras SA - Eletrobras Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR	77 Outperform	$19.58B	15.99	6.01%	7.36%	6.41%	37.23%
EIX	72 Outperform	$20.51B	7.83	17.37%	5.87%	4.26%	173.18%
KEP	68 Neutral	$17.40B	3.89	15.47%	0.34%	0.44%	124.47%
CMS	68 Neutral	$21.16B	20.86	12.48%	3.01%	8.25%	4.37%
Sector *	66 Neutral	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
DTE	65 Neutral	$27.97B	19.39	12.61%	3.16%	14.35%	3.62%
ES	60 Neutral	$23.76B	27.55	5.63%	4.59%	14.44%	―