Education
About Us
Working with TipRanks
Follow Us
Companhia Paranaense de Energia Sponsored ADR (ELPC)
NYSE:ELPC
Top Page
Companhia Paranaense de Energia Sponsored ADR
(NYSE:ELPC)
Select Model
Select Model
Rating:72Outperform
Price Target:
$9.50
▲(3.26% Upside)
The overall stock score of 72 reflects a solid financial foundation with improving profitability and effective equity utilization. The company's valuation is attractive with a low P/E ratio and high dividend yield. While technical indicators suggest mixed signals, the earnings call provides an optimistic outlook with strategic achievements and future growth plans.
Companhia Paranaense de Energia Sponsored ADR (ELPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.98B
Dividend Yield5.69%
Average Volume (3M)1.35K
Price to Earnings (P/E)12.1
Beta (1Y)0.27
Revenue Growth-5.28%
EPS Growth14.50%
CountryUS
Employees4,396
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.14
Shares Outstanding325,086,820
10 Day Avg. Volume1,729
30 Day Avg. Volume1,351
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda1.73
Forecast
1Y Price Target
$9.50Price Target Upside3.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Companhia Paranaense de Energia Sponsored ADR Business Overview & Revenue Model
Company DescriptionCompanhia Paranaense de Energia - COPEL engages in the generation, transformation, distribution, and sale of electricity to industrial, residential, commercial, rural, and other customers in Brazil. The company operates through Power Generation and Transmission, Power Distribution, GAS, Power Sale, and Holding and Services segments. It is also involved in the piped natural gas distribution. The company operates hydroelectric, wind, and thermoelectric plants; and owns and operates transmission and distribution lines. It holds concessions to distribute electricity in municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. Companhia Paranaense de Energia COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.
How the Company Makes MoneyCOPEL generates revenue through multiple streams primarily centered around its core operations in the energy sector. The company earns income from the generation and sale of electricity to both residential and industrial customers. This includes revenue from long-term power purchase agreements and spot market sales. Additionally, COPEL benefits from its transmission and distribution networks, charging fees for the use of its infrastructure by other electricity providers. The company's earnings are further supported by its involvement in energy trading activities. Strategic partnerships and investments in renewable energy projects also play a role in enhancing COPEL's revenue, aligning with global trends towards cleaner energy sources.
Companhia Paranaense de Energia Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call showcased Copel's strong operational performance and strategic asset optimization, highlighted by EBITDA growth and successful divestments. However, challenges such as increased financial expenses and potential delays in governance improvements due to a shareholder's request were noted. Despite these challenges, the overall sentiment leans towards optimism given the company's strategic achievements and future growth plans.Q2-2025 Updates
Positive Updates
EBITDA Growth
Copel reported an EBITDA of BRL 1.3 billion for Q2 2025, marking a 4.2% growth compared to the same quarter last year.
CapEx Execution
The company reported CapEx of approximately BRL 1 billion in Q2, aligning with its projection of over BRL 3 billion by the end of 2025.
Leverage Management
Leverage closed at 3.1x, expected to reduce to 2.9x net debt over EBITDA after the sale of Baixo Iguacu.
Divestments and Asset Optimization
Copel completed the sale of small hydro assets and the asset swap with Eletrobras, consolidating results of HPP Maua and Mata de Santa Genebra.
ESG Recognition
Copel received the best ESG Award for the Electrical sector from Exame Magazine and ranked first in Aneel's Ombudsman Award for the third consecutive year.
Negative Updates
Deferral from CVM
A request to interrupt the General Meeting for up to 15 days was made by a single Class A preferred shareholder, potentially delaying the migration to Novo Mercado.
Recurring Net Income Decrease
Recurring net income was BRL 452.4 million, down 9.5% compared to the same quarter of 2024.
Increased Financial Expenses
A 38.7% increase in financial expenses impacted net income, attributed to higher debt and CDI rates.
Energy Purchase Costs
There was an increase of BRL 126.3 million in the cost of energy purchased for resale, impacting the distribution segment.
Company Guidance
In the second quarter of 2025, Companhia Paranaense de Energia (Copel) reported an EBITDA of BRL 1.3 billion, reflecting a 4.2% growth from the previous year, and a recurring net income above BRL 450 million. The company's CapEx during the period was approximately BRL 975 million, aligning with its projection to exceed BRL 3 billion by the end of 2025. Copel's leverage was reported at 3.1x, affected by the temporary acquisition of Baixo Iguacu, but it is expected to decrease to 2.9x net debt over EBITDA following the asset's sale in the third quarter. The company completed significant asset transactions, including the sale of small hydro assets and an asset swap with Eletrobras. Furthermore, Copel received prestigious awards for ESG performance and customer service excellence, highlighting its commitment to sustainability and quality service. The company is also in the process of migrating to Novo Mercado to improve share liquidity and attract investors, despite a slight delay due to regulatory deferral.Companhia Paranaense de Energia Sponsored ADR Financial Statement Overview
Summary
ELPC shows a solid financial position with improving profitability and effective equity utilization. Revenue and profit margins are on an upward trend, but historical volatility and recent cash flow challenges highlight areas for cautious monitoring.Income Statement
The income statement shows a positive revenue growth rate of 3.23% in the TTM period, indicating a steady upward trajectory. Gross profit margin and net profit margin have improved significantly, with the net profit margin at 16.28%, reflecting enhanced profitability. However, historical volatility in margins and a prior year of negative net profit margin suggest some instability.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.73, indicating a balanced approach to leverage. Return on equity has improved to 11.52% in the TTM, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, and past fluctuations in debt levels suggest potential risks.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 11.06% in the TTM, indicating potential cash management challenges. The operating cash flow to net income ratio is stable at 0.33, and the free cash flow to net income ratio is strong at 0.80, suggesting efficient cash conversion despite recent growth setbacks.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.87B | 22.65B | 21.48B | 20.54B | -13.33B | 18.63B |
| Gross Profit | 4.44B | 4.07B | 4.90B | 744.15M | -30.03B | 5.29B |
| EBITDA | 5.50B | 5.17B | 3.96B | 2.27B | 5.64B | 6.14B |
| Net Income | 3.04B | 454.29M | 2.26B | 1.11B | 4.95B | 3.90B |
Balance Sheet | ||||||
| Total Assets | 60.74B | 57.38B | 55.82B | 49.70B | 49.54B | 46.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.90B | 4.38B | 5.65B | 2.87B | 3.87B | 3.40B |
| Total Debt | 20.21B | 17.57B | 15.23B | 12.73B | 12.04B | 10.08B |
| Total Liabilities | 35.18B | 31.75B | 31.63B | 28.57B | 27.36B | 26.53B |
| Stockholders Equity | 25.60B | 25.67B | 23.89B | 20.82B | 21.84B | 19.96B |
Cash Flow | ||||||
| Free Cash Flow | 3.09B | 3.26B | 3.30B | 3.51B | 3.04B | 3.70B |
| Operating Cash Flow | 3.25B | 3.39B | 3.52B | 3.90B | 3.39B | 3.94B |
| Investing Cash Flow | -6.83B | -5.74B | -3.14B | -2.77B | 31.91M | -1.67B |
| Financing Cash Flow | -868.91M | 803.86M | 2.70B | -1.92B | -2.88B | -1.72B |
Companhia Paranaense de Energia Sponsored ADR Technical Analysis
Positive
9.20
Price Trends
8.54
Positive
8.33
Positive
7.38
Positive
Market Momentum
0.07
Negative
61.99
Neutral
87.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELPC, the sentiment is Positive. The current price of 9.2 is above the 20-day moving average (MA) of 8.69, above the 50-day MA of 8.54, and above the 200-day MA of 7.38, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 87.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELPC.
Companhia Paranaense de Energia Sponsored ADR Risk Analysis
Companhia Paranaense de Energia Sponsored ADR disclosed 49 risk factors in its most recent earnings report. Companhia Paranaense de Energia Sponsored ADR 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
Companhia Paranaense de Energia Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.35B | 4.98 | 22.94% | 13.35% | -3.27% | -3.44% | |
75 Outperform | $60.50B | 22.45 | 8.87% | 2.77% | 0.46% | -11.77% | |
74 Outperform | $7.15B | 13.43 | 9.81% | 5.68% | -5.28% | 14.50% | |
72 Outperform | $6.98B | 12.15 | 9.81% | 5.69% | -5.28% | 14.50% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $10.25B | 10.29 | 21.17% | 4.89% | -3.19% | 30.48% | |
64 Neutral | $22.72B | 1,795.36 | 1.06% | 4.89% | 8.86% | ― |
* Utilities Sector Average
ELPC
Companhia Paranaense de Energia Sponsored ADR
9.20
3.38
58.08%
BIP
Brookfield Infrastructure
34.67
1.11
3.31%
CIG
Companhia Energetica Minas Gerais
1.97
0.24
13.87%
ELP
Companhia Paranaense de Energia Pfd
9.83
3.24
49.17%
SRE
Sempra Energy
92.29
9.20
11.07%
AES
AES
14.32
-1.71
-10.67%
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.