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

• Market Cap: $17.67B
• Dividend Yield: 7.86%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.57
• Revenue Growth: 6.41%
• EPS Growth: 37.23%
• Country: US
• Employees: 7,710
• Sector: Utilities
• Sector Strength: 78
• Industry: Regulated Electric
• EPS (TTM): 0.10
• Shares Outstanding: 2,021,139,400
• 10 Day Avg. Volume: 1,600,041
• 30 Day Avg. Volume: 1,429,479
• 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: 1.40
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $8.50
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $8.50 ▲(8.28% 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.

Centrais Eletricas Brasileiras SA - Eletrobras 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

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

Centrais Eletricas Brasileiras SA exhibits a strong financial profile with robust revenue growth, high profitability margins, and effective cash flow management. The balance sheet remains stable with prudent leverage and solid equity backing. The company is well-positioned for continued financial health and operational success in the regulated electric industry.

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.

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.

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.

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: 7.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.85 is above the 20-day moving average (MA) of 7.34, above the 50-day MA of 7.12, and above the 200-day MA of 6.48, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.62 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR.B	79 Outperform	$18.17B	15.77	6.01%	7.88%	6.41%	37.23%
EBR	77 Outperform	$17.67B	14.28	6.01%	7.86%	6.41%	37.23%
EVRG	72 Outperform	$16.70B	19.96	8.55%	3.69%	3.28%	13.56%
CMS	72 Outperform	$21.86B	21.55	12.48%	2.93%	8.25%	4.37%
EIX	72 Outperform	$21.69B	8.28	17.37%	5.87%	4.26%	173.18%
LNT	71 Outperform	$16.97B	20.40	11.94%	2.99%	4.62%	32.23%
Sector *	66 Neutral	¥392.50B	13.52	9.30%	2.53%	3.85%	9.47%