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Centrais Elc Braz Pfb B Elbras (EBR.B)
NYSE:EBR.B
RESEARCH TOOLSreports
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Centrais Elc Braz Pfb B Elbras
(NYSE:EBR.B)
79Outperform
Centrais Elc Braz Pfb B Elbras (EBR.B) vs. S&P 500 (SPY)
Market Cap
$15.62B
Dividend Yield8.55%
Average Volume (3M)63.53K
Price to Earnings (P/E)8.9
Beta (1Y)0.76
Revenue Growth2.94%
EPS Growth191.13%
CountryUS
Employees8,328
SectorUtilities
Sector Strength83
IndustryRegulated Utilities
Share Statistics
EPS (TTM)0.83
Shares Outstanding279,941,000
10 Day Avg. Volume110,718
30 Day Avg. Volume63,531
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)8.69
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Centrais Elc Braz Pfb B Elbras Business Overview & Revenue Model
Company DescriptionCentrais Elétricas Brasileiras S.A. (Eletrobras) is a leading Brazilian electric utilities company primarily engaged in electricity generation, transmission, and distribution. As one of the largest power utilities in Latin America, Eletrobras operates a diverse portfolio of hydroelectric, thermoelectric, and alternative energy plants, ensuring a significant contribution to Brazil's energy needs. The company plays a crucial role in the country's energy sector, focusing on sustainable and renewable energy solutions to foster national development.
How the Company Makes MoneyEletrobras generates revenue primarily through the sale of electricity generated from its extensive network of power plants, including hydroelectric, nuclear, and thermal energy facilities. The company enters into long-term power purchase agreements (PPAs) with distribution companies and industrial customers, ensuring stable and predictable income streams. Additionally, Eletrobras earns revenue from its transmission services, where it operates an extensive grid infrastructure to transport electricity across Brazil. The company's strategic partnerships and investments in renewable energy projects further enhance its revenue potential and contribute to its earnings. Eletrobras also benefits from government programs and incentives aimed at promoting clean energy and improving the country's energy infrastructure.
Centrais Elc Braz Pfb B Elbras Financial Statement Overview
Summary
Centrais Elc Braz Pfb B Elbras has shown strong financial health with robust profitability and efficient cash flow management. The income statement reflects strong revenue growth and profitability margins, while the balance sheet indicates a balanced leverage position with a moderate debt-to-equity ratio. Positive free cash flow growth further supports the company's financial stability, although high liabilities and fluctuating gross profit margins present potential risks.Income Statement
The company demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue of approximately 10% higher than the previous year. Gross and net profit margins are robust at 45.72% and 26.68% respectively for TTM, indicating efficient operations and strong profitability. The EBIT margin at 25.55% and EBITDA margin at 44.54% in TTM further highlight operational efficiency. While the revenue growth is commendable, the year-over-year fluctuations in gross profit suggest potential volatility in cost management.85
Very Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.60, suggesting a balanced leverage position. The equity ratio is healthy at 43.33%, indicating a strong capital structure. Return on equity (ROE) has improved substantially to 8.38% in TTM, reflecting enhanced shareholder value. However, the high level of total liabilities raises concerns about future interest obligations and financial flexibility.78
Positive
Cash Flow
The company has shown positive free cash flow growth, with a TTM free cash flow of 7.92% higher than the previous year, indicating improved cash generation. The operating cash flow to net income ratio is 0.82, suggesting good cash conversion from profits. The free cash flow to net income ratio is 0.44, showing that a significant portion of earnings is converted to cash. The consistent positive free cash flow is a strength, although investing and financing cash flows indicate potential constraints.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 38.08B | 37.16B | 34.07B | 37.62B | 29.08B | 27.73B | Gross Profit |
| 17.41B | 18.49B | 18.22B | 25.66B | 15.65B | 20.95B | EBIT |
| 9.73B | 11.02B | 5.69B | 13.40B | 6.94B | 5.76B | EBITDA |
| 16.96B | 11.81B | 9.07B | 14.08B | 11.33B | 10.59B | Net Income Common Stockholders |
| 10.16B | 4.55B | 2.65B | 5.65B | 6.39B | 7.46B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.01B | 15.97B | 23.62B | 16.53B | 14.33B | 16.69B | Total Assets |
| 181.21B | 267.06B | 270.22B | 188.30B | 178.97B | 177.47B | Total Debt |
| 56.31B | 63.15B | 61.15B | 46.14B | 49.10B | 49.59B | Net Debt |
| 55.73B | 50.10B | 49.72B | 45.94B | 48.82B | 49.26B | Total Liabilities |
| 125.20B | 154.59B | 159.19B | 111.89B | 105.22B | 106.07B | Stockholders Equity |
| 55.54B | 112.33B | 110.50B | 76.12B | 73.48B | 70.91B |
| Cash Flow | Free Cash Flow | ||||
| 4.45B | 4.12B | -24.35B | -10.92B | 1.80B | -2.11B | Operating Cash Flow |
| 8.36B | 8.24B | 9.28B | -8.23B | 4.20B | -86.33M | Investing Cash Flow |
| -2.95B | 819.42M | -28.80B | 123.99M | 2.44B | 3.27B | Financing Cash Flow |
| -4.74B | -6.76B | 30.07B | -8.45B | -6.69B | -3.39B |
Centrais Elc Braz Pfb B Elbras Technical Analysis
Positive
7.44
Price Trends
6.83
Positive
6.70
Positive
7.03
Positive
Market Momentum
0.14
Positive
61.49
Neutral
81.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR.B, the sentiment is Positive. The current price of 7.44 is above the 20-day moving average (MA) of 7.27, above the 50-day MA of 6.83, and above the 200-day MA of 7.03, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 81.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.B.
Centrais Elc Braz Pfb B Elbras Risk Analysis
Centrais Elc Braz Pfb B Elbras disclosed 61 risk factors in its most recent earnings report. Centrais Elc Braz Pfb B Elbras 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 Elc Braz Pfb B Elbras Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.62B | 8.90 | 8.91% | 8.55% | 2.94% | 191.13% | |
77 Outperform | $91.39B | 20.71 | 9.10% | 3.53% | 4.46% | 54.09% | |
77 Outperform | $98.82B | 23.28 | 13.61% | 3.20% | 5.83% | 10.23% | |
77 Outperform | $27.36B | 19.50 | 12.32% | 3.14% | -1.13% | 0.16% | |
68 Neutral | $25.31B | 28.63 | 6.33% | 3.00% | 1.80% | 19.78% | |
65 Neutral | $11.99B | 15.63 | 6.50% | 4.40% | 7.00% | 0.55% | |
63 Neutral | $8.53B | 4.99 | 39.65% | 5.89% | -3.14% | 564.25% |
* Utilities Sector Average
Performance Comparison
EBR.B
Centrais Elc Braz Pfb B Elbras
7.44
-1.45
-16.31%
DTE
DTE Energy
131.36
24.19
22.57%
DUK
Duke Energy
116.64
24.70
26.87%
PPL
PPL
33.97
7.88
30.20%
SO
Southern Co
88.68
21.08
31.18%
AES
AES
11.83
-3.22
-21.40%
Centrais Elc Braz Pfb B Elbras Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: 7.98% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Eletrobras' achievements in operational efficiency, cash position, and ESG initiatives. However, challenges remain with operational expense volatility, collective bargaining agreements, and market risks.Highlights
Operational Efficiency and Budget Management
For the first time in Eletrobras' history, the company has full freedom to manage its costs, aiming to improve operational efficiency and competitiveness. The company targets a PMSO below BRL7 million in 2024, below BRL6 million in 2025, and close to BRL5.5 million in 2026.
Strong Cash Position and Funding Efforts
Eletrobras raised over BRL22 billion in 2024, ending with about EUR37 million in cash, which allows the company to navigate volatility and support substantial CapEx growth.
Significant Reductions in Liability
The company reduced its liability by over BRL1 billion in the quarter, with a further reduction of BRL750 million in off-balance debts.
ESG Initiatives and Achievements
Eletrobras received permission to operate the Coxilha Negra wind farm and established a Social and Environmental Commission.
Revenue Growth from Transmission and Profit Terms
Eletrobras recognized revenue close to BRL6 billion from transmission and profit terms, with a significant impact on profits.
Lowlights
Volatility in Operational Expenses
The company's operational expenses showed volatility, with a 7% increase over the second quarter and 1% compared to last year.
Challenges with Collective Bargaining Agreement
Only 65% of associates adopted the Collective Bargaining Agreement, and some groups remain outside the agreement, causing potential operational challenges.
Energy Market Volatility and Risks
There is increasing risk of delinquency in the energy market, with potential impacts on future negotiations and energy prices.
Company Guidance
During the Eletrobras Q3 2024 earnings call, the management outlined several key financial and operational metrics driving the company's future performance. The company reaffirmed its commitment to reducing its PMSO (Personnel, Materials, Services, and Others) expenses to below BRL7 million in 2024, targeting further reductions to BRL5.5 million by 2026. This effort is part of a broader strategy to enhance operational efficiency following the integration of Furnas, which has started to positively impact the results. Eletrobras also highlighted its strong financial position, having raised over BRL22 billion in 2024, which has bolstered its cash reserves to approximately EUR37 million, providing a comfortable cushion for future debt amortization and capital expenditures. In terms of energy sales, the company is expanding its client base and managing its power portfolio effectively, with a focus on leveraging price volatility to enhance revenue. Furthermore, significant reductions in compulsory loan liabilities by over BRL1 billion were noted, alongside the company's ongoing ESG initiatives, including the operation of the Coxilha Negra wind farm.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.