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

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Companhia Paranaense de Energia Sponsored ADR

(NYSE:ELPC)

Rating:71Outperform

Price Target:

$8.50

▲(0.95% Upside)

The stock's overall score is driven by its strong financial performance and attractive valuation. Financial stability is supported by healthy profit margins and cash flow metrics. The high dividend yield enhances the stock's appeal, although technical indicators suggest caution with mixed short-term signals.

Companhia Paranaense de Energia Sponsored ADR (ELPC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.49B

Dividend Yield6.32%

Average Volume (3M)5.14K

Price to Earnings (P/E)11.5

Beta (1Y)0.22

Revenue Growth-5.28%

EPS Growth14.50%

CountryUS

Employees4,396

SectorGeneral

Sector StrengthN/A

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.14

Shares Outstanding325,086,820

10 Day Avg. Volume1,391

30 Day Avg. Volume5,145

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.46

Enterprise Value/Revenue0.52

Enterprise Value/Gross Profit1.51

Enterprise Value/Ebitda1.78

Forecast

1Y Price Target

$8.50

Price Target Upside0.95% 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

(Q3-2024)

% Change Since: 2.56%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Copel's strong financial performance and strategic successes, including record net income, successful divestments, and effective energy trading strategies. However, challenges remain in the generation and transmission sectors due to curtailment impacts and trading setbacks.

Q3-2024 Updates

Positive Updates

Record Net Income and EBITDA

Copel achieved a net income and adjusted EBITDA exceeding BRL 1.2 billion, driven by sound business results and extraordinary events totaling approximately BRL 645 million.

Strategic Divestments and Decarbonization

The divestment of Compagas and UEGA generated BRL 170 million, and the sale of Copel G&T’s real estate added BRL 175 million to net income. These moves align with Copel's decarbonization strategy.

Dividend Declaration

Copel declared dividends of BRL 485 million, equivalent to a 50% payout, to be paid on November 29, 2024.

Successful Energy Trading Strategy

The company executed its energy sales strategy effectively, resulting in a significant margin increase and contracts totaling more than 537 average megawatts for future periods.

Strong Distribution Performance

Copel Distribution generated an EBITDA of BRL 607 million, an 8.7% increase, driven by higher temperatures and economic activity.

Negative Updates

Challenges in Generation and Transmission

Copel G&T faced a challenging quarter with a 10.9% decrease in adjusted EBITDA due to lower average energy prices and wind farm generation deviations.

Impact of Curtailment on Wind Assets

Generation deviation caused by a 23% curtailment on wind assets resulted in a negative effect of BRL 67 million.

Energy Trading Setbacks

Trading results were impacted by BRL 30 million due to differences in the hourly contract generation curve and submarket price differences.

Company Guidance

During the Q3 2024 earnings call for Companhia Paranaense de Energia (CPLE6.SA), the company provided several key metrics and strategic updates. Copel reported an adjusted EBITDA of BRL 1.2 billion and a net income surpassing BRL 1.2 billion, partly due to extraordinary events totaling approximately BRL 645 million. These included the divestment of Compagas and UEGA, contributing BRL 170 million, and the sale of Copel G&T's real estate, adding BRL 175 million to net income. The company declared dividends of BRL 485 million, equivalent to a 50% payout ratio. Copel also highlighted significant workforce restructuring, reducing personnel costs by 11.2% after the voluntary exit of 1,258 employees. The call emphasized Copel's strategic focus on decarbonization and electrical core, with a disciplined approach to trading, evidenced by sales totaling more than 537 average megawatts for 2025-2028. Despite challenges with energy curtailment affecting wind assets, Copel's integrated strategy and diversified portfolio proved resilient, maintaining leverage at around 1.5x net debt over EBITDA. The company continues to optimize its capital structure, with an emphasis on efficiency, quality, and stakeholder value, while inviting investors to its upcoming Copel Day for further insights into its long-term strategy.

Companhia Paranaense de Energia Sponsored ADR Financial Statement Overview

Summary

Overall, ELPC has demonstrated commendable financial performance with strong profitability and cash flow metrics. Despite some revenue challenges, the company maintains a healthy balance sheet and capital structure. Continued focus on revenue growth and debt management will support future stability and growth in the competitive diversified utilities sector.

Income Statement

Positive

The company has shown strong profitability with a TTM Gross Profit Margin of 34.8% and a Net Profit Margin of 16.3%. Despite a decline in total revenue from the previous year, the EBIT and EBITDA margins are healthy at 21.1% and 29.5% respectively. However, the negative revenue growth rate indicates potential challenges in generating sales.

Balance Sheet

Positive

The balance sheet indicates moderate leverage with a Debt-to-Equity ratio of 0.73. The company's Return on Equity (ROE) is robust at 11.2%, showing efficient use of equity. The Equity Ratio stands at 43.6%, reflecting a balanced capital structure, though there is room for improvement in reducing debt.

Cash Flow

Very Positive

The cash flow statement is strong with a significant Free Cash Flow growth rate and a Free Cash Flow to Net Income ratio of 0.98, indicating efficient cash generation. The Operating Cash Flow to Net Income ratio of 1.22 suggests excellent cash earnings quality, supporting operational stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.65B	21.48B	20.54B	-13.33B	18.63B
Gross Profit	658.55M	4.90B	744.15M	-30.03B	5.29B
EBITDA	4.45B	3.96B	2.27B	5.64B	6.14B
Net Income	454.29M	2.26B	1.11B	4.95B	3.90B
Balance Sheet
Total Assets	57.38B	55.82B	49.70B	49.54B	46.78B
Cash, Cash Equivalents and Short-Term Investments	4.38B	5.65B	2.87B	3.87B	3.40B
Total Debt	17.57B	15.23B	12.73B	12.04B	10.08B
Total Liabilities	31.75B	31.63B	28.57B	27.36B	26.53B
Stockholders Equity	25.67B	23.89B	20.82B	21.84B	19.96B
Cash Flow
Free Cash Flow	526.45M	3.30B	3.51B	3.04B	3.70B
Operating Cash Flow	3.39B	3.52B	3.90B	3.39B	3.94B
Investing Cash Flow	-5.74B	-3.14B	-2.77B	31.91M	-1.67B
Financing Cash Flow	129.98M	2.70B	-1.92B	-2.88B	-1.72B

Companhia Paranaense de Energia Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.42

Price Trends

50DMA

8.14

Positive

100DMA

7.67

Positive

200DMA

6.65

Positive

Market Momentum

MACD

0.10

Negative

RSI

54.32

Neutral

STOCH

75.37

Neutral

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 8.42 is above the 20-day moving average (MA) of 8.02, above the 50-day MA of 8.14, and above the 200-day MA of 6.65, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.37 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELP	79 Outperform	$6.49B	12.52	9.81%	6.21%	-5.28%	14.50%
CIG	75 Outperform	$6.42B	4.41	26.38%	4.63%	-4.14%	13.02%
ELPC	71 Outperform	$6.49B	11.52	9.81%	6.32%	-5.28%	14.50%
AES	64 Neutral	$9.19B	9.12	21.17%	5.41%	-3.19%	30.48%
BIP	63 Neutral	$19.48B	1,539.18	1.06%	5.59%	8.86%	―
Sector *	56 Neutral	$6.70B	8.20	-9.67%	6.22%	14.63%	5.17%
HE	50 Neutral	$1.96B	―	-1.53%	―	-11.75%	96.86%

* General Sector Average

Performance Comparison

ELPC

Companhia Paranaense de Energia Sponsored ADR

8.28

1.85

28.77%

BIP

Brookfield Infrastructure

29.86

0.00

0.00%

CIG

Companhia Energetica Minas Gerais

1.95

0.17

9.55%

ELP

Companhia Paranaense de Energia Pfd

9.00

1.78

24.65%

Hawaiian Electric

11.37

-2.00

-14.96%

AES

12.94

-3.36

-20.61%

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.Date of analysis: Jul 31, 2025