Education
About Us
Working with TipRanks
Follow Us
Centrais Eletricas Brasileiras S.A. - Eletrobras (EBR)
:EBR
RESEARCH TOOLSreports
Top Page
Centrais Eletricas Brasileiras SA - Eletrobras
(NYSE:EBR)
Rating:75Outperform
Price Target:
$8.00
â–²(10.19%Upside)
Centrais Eletricas Brasileiras SA - Eletrobras (EBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.71B
Dividend Yield7.65%
Average Volume (3M)1.20M
Price to Earnings (P/E)9.2
Beta (1Y)0.50
Revenue Growth0.18%
EPS Growth99.46%
CountryUS
Employees7,710
SectorUtilities
Sector Strength69
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.02
Shares Outstanding2,021,139,400
10 Day Avg. Volume1,077,282
30 Day Avg. Volume1,200,299
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.75
Price to Sales (P/S)0.00
P/FCF Ratio-3.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.50Price Target Upside17.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Centrais Eletricas Brasileiras SA - Eletrobras 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 generated by its extensive portfolio of power plants. The company operates a mix of hydroelectric, thermal, wind, and solar power facilities, which collectively supply electricity to Brazil's national grid. Revenue streams include long-term power purchase agreements, spot market sales, and transmission fees for the use of its extensive transmission network. Additionally, Eletrobras engages in partnerships and joint ventures with other energy companies to develop new projects, which can also contribute to its revenue. Government regulation and energy policies, as well as market demand, significantly influence the company's earnings.
Centrais Eletricas Brasileiras SA - Eletrobras Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -5.35%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in cost reduction and sustainability initiatives, alongside challenges such as adjusted losses and market risks. Despite positive steps towards growth and environmental goals, financial setbacks and market strategy misalignments posed challenges.Q1-2025 Updates
Positive Updates
Partial Sale of Amazon Thermal Plants
Eletrobrás completed a partial sale of Amazon thermal plants, receiving R$2 billion in cash. The transaction aligns with the company's commitment to net-zero emissions by 2030.
Cost Reduction Achievements
Operational costs dropped by 28% compared to Q4 2024 and by 8% year-on-year, with personnel cost savings of R$143 million.
Energy Trading Growth
There was a 35% increase in the free market energy trading year-on-year, reaching 722 customers.
Sustainability Initiatives
Launched a sustainability report for 2024, with initiatives such as partnerships for electrical cars and decarbonization in ports, and the birth of the first Amazonian manatee calf in five years.
Negative Updates
Adjusted Loss for Q1 2025
Eletrobrás reported an adjusted loss of R$81 million, primarily due to the regulatory remeasurement of Chesf for transmission.
Submarket Risk and Price Mismatches
Hedging strategy led to price mismatches between the North/Northeast and Southeast markets, impacting Q1 2025 results.
Decline in Transmission Revenue
Transmission revenue experienced a drop, partially offsetting generation revenues, contributing to a 4% decline in regulatory adjusted EBITDA.
Company Guidance
During the first quarter of 2025, Eletrobrás provided several key financial and operational updates in their conference call. The company reported an adjusted loss of R$81 million, primarily due to the regulatory remeasurement of Chesf for transmission, and a significant reduction in operational costs, with a 28% drop compared to the fourth quarter of 2024 and an 8% year-on-year decrease, saving R$143 million in personnel. Energy trading in the free market saw a 35% year-on-year increase. The company received R$2 billion in cash from a partial sale of Amazon thermal plants and continued efforts to divest its stake in the Angra nuclear plant, while confirming ongoing investments to complete the Angra nuclear plant. Revenue grew by 16%, although EBITDA saw a 4% decline, influenced by transmission revenue drops and a mismatch in sales exposure. Eletrobrás emphasized its commitment to operational excellence, with high availability of generation and transmission equipment, and significant developments in sustainability initiatives, including a partnership with Estapar for electric vehicles and efforts to promote decarbonization in ports. Looking ahead, the company plans to maintain a balanced energy portfolio and continue optimizing its PMSO, aiming for a figure slightly below R$6 million for the year.Centrais Eletricas Brasileiras SA - Eletrobras Financial Statement Overview
Summary
Centrais Eletricas Brasileiras SA shows strong financial performance with consistent revenue growth and high profitability margins. Effective cash flow management and a stable balance sheet with prudent leverage enhance its financial profile.Income Statement
Centrais Eletricas Brasileiras SA has demonstrated strong financial performance with consistent revenue growth, particularly a TTM growth rate of 4.23%. Gross profit margin is impressive at 83.15% TTM, indicating efficient cost management. Net profit margin is robust at 23.15% TTM, reflecting strong profitability. EBIT and EBITDA margins are also high, suggesting effective operational control and healthy earnings before interest, taxes, depreciation, and amortization.85
Very Positive
Balance Sheet
The company maintains a stable balance sheet with a moderate debt-to-equity ratio of 0.60, indicating manageable leverage. The equity ratio of 43.08% demonstrates a solid foundation of equity financing. Return on equity at 7.98% TTM reflects decent profitability relative to shareholders' equity. Overall, the balance sheet shows a stable financial position with effective management of liabilities and equity.78
Positive
Cash Flow
Eletrobras has shown strong cash flow performance with a significant operating cash flow to net income ratio of 1.45, indicating efficient conversion of income into cash. Free cash flow to net income ratio of 1.18 reflects the ability to generate surplus cash after capital expenditures. The free cash flow growth rate of 22.69% demonstrates an upward trend in cash flow generation, supporting future investments and debt servicing.82
Very 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 Eletricas Brasileiras SA - Eletrobras Technical Analysis
Negative
7.26
Price Trends
7.44
Negative
7.14
Positive
6.60
Positive
Market Momentum
>-0.01
Positive
45.18
Neutral
32.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR, the sentiment is Negative. The current price of 7.26 is below the 20-day moving average (MA) of 7.38, below the 50-day MA of 7.44, and above the 200-day MA of 6.60, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 32.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.85B | 21.60 | 10.71% | 3.29% | 2.46% | 5.66% | |
75 Outperform | $16.71B | 9.19 | 8.58% | 7.65% | 0.18% | 99.46% | |
73 Outperform | $16.71B | 10.16 | 8.58% | 0.99% | 0.18% | 99.46% | |
72 Outperform | $20.75B | 20.52 | 12.53% | 3.11% | 5.87% | 3.59% | |
69 Neutral | $15.83B | 18.29 | 8.95% | 3.88% | 5.53% | 23.00% | |
67 Neutral | $19.52B | 7.20 | 17.93% | 6.54% | 5.36% | 209.92% | |
67 Neutral | $16.47B | 17.00 | 4.45% | 3.56% | 4.76% | 6.21% |
* Utilities Sector Average
Performance Comparison
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
7.16
0.24
3.47%
LNT
Alliant Energy
62.60
10.51
20.18%
EBR.B
Centrais Elc Braz Pfb B Elbras
7.92
0.48
6.45%
CMS
CMS Energy
70.54
11.20
18.87%
EIX
Edison International
51.29
-19.84
-27.89%
EVRG
Evergy
69.42
16.62
31.48%
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.