Companhia Paranaense de Energia Sponsored ADR (ELPC) AI Stock Analysis

• Market Cap: $7.86B
• Dividend Yield: 5.21%
• Average Volume (3M): 2.50K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.32
• Revenue Growth: 1.96%
• EPS Growth: -35.00%
• Country: US
• Employees: 4,396
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.10
• Shares Outstanding: 323,630,520
• 10 Day Avg. Volume: 2,293
• 30 Day Avg. Volume: 2,505
• PEG Ratio: 2.91
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 8.97
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 1.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $11.50 ▲(14.43% Upside)

The overall stock score is driven by strong financial performance and positive technical indicators. While the valuation suggests the stock may be overvalued, the high dividend yield offers compensation. The earnings call provided a positive outlook despite some challenges, contributing to a favorable score.

Positive Factors

EBITDA Growth

The consistent growth in EBITDA indicates strong operational performance and effective cost management, supporting long-term profitability.

CapEx Investment

Significant investment in capital expenditures reflects a commitment to infrastructure improvement and future growth potential.

Cost Efficiency

Reduction in operating expenses enhances profitability and demonstrates effective cost management, crucial for long-term financial health.

Negative Factors

Decline in Net Income

A significant drop in net income may impact investor confidence and indicates potential challenges in maintaining profitability.

Increased Financial Costs

Rising financial costs can strain cash flows and reduce net margins, potentially affecting the company's financial stability.

Trading Segment Challenges

Challenges in the trading segment, including margin drops, may hinder overall profitability and require strategic adjustments.

Companhia Paranaense de Energia Sponsored ADR Business Overview & Revenue Model

Company Description

Companhia 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 Money

Companhia Paranaense de Energia generates revenue primarily through the sale and distribution of electricity to a diverse customer base, which includes residential, commercial, and industrial sectors. The company's revenue model is structured around regulated tariffs set by government authorities, ensuring a stable income stream from its utility operations. Key revenue streams include charges for energy consumption, connection fees, and ancillary services. Additionally, ELPC benefits from partnerships with various stakeholders, including governmental bodies and private enterprises, which can enhance its service offerings and operational efficiency. The company also invests in renewable energy projects, which can lead to additional revenue through incentives and green energy credits.

Companhia Paranaense de Energia Sponsored ADR Financial Statement Overview

Summary

The company demonstrates solid financial health with consistent revenue growth and strong cash flow generation. Profitability margins are healthy, but rising debt levels need monitoring to maintain financial stability.

Income Statement

The income statement shows a positive revenue growth rate of 4.51% TTM, indicating a steady increase in sales. The gross profit margin is moderate at 15.83%, and the net profit margin has improved to 8.85% TTM, reflecting better cost management. However, the gross profit margin has decreased compared to previous years, which could indicate rising costs or pricing pressures. The EBIT and EBITDA margins are strong at 19.35% and 21.95% TTM, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.82 TTM, indicating a balanced approach to leveraging. The return on equity is 8.53% TTM, which is a moderate return for shareholders. The equity ratio stands at 41.88%, suggesting a stable capital structure. However, the increasing trend in debt levels over the years could pose a risk if not managed carefully.

Cash Flow

The cash flow statement highlights a significant free cash flow growth rate of 23.39% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.36, and the free cash flow to net income ratio is 0.94, both suggesting efficient cash conversion. The company has shown resilience in maintaining positive cash flows despite fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.95B	22.65B	21.48B	20.54B	-13.33B	18.63B
Gross Profit	4.67B	4.89B	4.90B	4.93B	-30.03B	5.29B
EBITDA	5.48B	4.45B	3.96B	2.27B	5.64B	6.14B
Net Income	2.21B	2.81B	2.26B	1.11B	4.95B	3.90B
Balance Sheet
Total Assets	62.05B	57.38B	55.82B	49.70B	49.54B	46.78B
Cash, Cash Equivalents and Short-Term Investments	3.97B	4.38B	5.65B	2.87B	3.87B	3.40B
Total Debt	21.24B	17.57B	15.23B	12.73B	12.04B	10.08B
Total Liabilities	36.10B	31.75B	31.63B	28.57B	27.36B	26.53B
Stockholders Equity	25.99B	25.67B	23.89B	20.82B	21.84B	19.96B
Cash Flow
Free Cash Flow	2.50B	603.96M	663.41M	681.71M	564.97M	720.12M
Operating Cash Flow	2.63B	629.49M	704.42M	755.67M	627.64M	764.00M
Investing Cash Flow	-6.98B	-1.06B	-627.66M	-537.32M	5.91M	-323.29M
Financing Cash Flow	-220.39M	149.11M	539.87M	-372.16M	-534.53M	-332.50M

Companhia Paranaense de Energia Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.05 is above the 20-day moving average (MA) of 10.04, above the 50-day MA of 9.39, and above the 200-day MA of 8.01, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 87.83 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELPC	75 Outperform	$7.86B	19.70	8.00%	5.21%	1.96%	-35.00%
ELP	75 Outperform	$7.64B	14.57	8.00%	5.27%	1.96%	-35.00%
SRE	74 Outperform	$59.72B	28.17	7.10%	2.73%	9.07%	-28.58%
CIG	70 Outperform	$6.51B	8.49	13.35%	12.30%	-0.38%	-53.94%
BIP	69 Neutral	$16.45B	55.87	6.28%	4.78%	8.14%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	59 Neutral	$9.96B	8.52	23.02%	5.03%	-1.55%	12.83%

Companhia Paranaense de Energia Sponsored ADR Corporate Events

Copel Reports Strong Q3 Earnings Amid Strategic Moves

Companhia Paranaense de Energia, also known as Copel, is a Brazilian energy company engaged in the generation, transmission, and distribution of electricity, with a focus on renewable energy sources and a significant presence in the Brazilian energy market.