CENTRAIS ELETRICAS BR-SP ADR (EBR) Stock Fundamental Analysis
NYSE:EBR - New York Stock Exchange, Inc. - US15234Q2075 - ADR - Currency: USD
Overall EBR gets a fundamental rating of 6 out of 10. We evaluated EBR against 47 industry peers in the Electric Utilities industry. EBR has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on EBR. This makes EBR very considerable for value investing!
1. Profitability
1.1 Basic Checks
EBR had positive earnings in the past year.
EBR had a positive operating cash flow in the past year.
In the past 5 years EBR has always been profitable.
Each year in the past 5 years EBR had a positive operating cash flow.
1.2 Ratios
EBR has a better Return On Assets (3.44%) than 68.09% of its industry peers.
EBR has a Return On Equity of 7.98%. This is in the lower half of the industry: EBR underperforms 72.34% of its industry peers.
EBR has a Return On Invested Capital of 6.71%. This is amongst the best in the industry. EBR outperforms 82.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EBR is significantly below the industry average of 38.54%.
The 3 year average ROIC (4.35%) for EBR is below the current ROIC(6.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 7.98% | ||
| ROIC | 6.71% |
ROA(3y)2.21%
ROA(5y)2.63%
ROE(3y)5.29%
ROE(5y)6.38%
ROIC(3y)4.35%
ROIC(5y)4.41%
1.3 Margins
Looking at the Profit Margin, with a value of 23.14%, EBR belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
In the last couple of years the Profit Margin of EBR has declined.
Looking at the Operating Margin, with a value of 52.13%, EBR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
EBR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.34%, EBR is in line with its industry, outperforming 46.81% of the companies in the same industry.
In the last couple of years the Gross Margin of EBR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.13% | ||
| PM (TTM) | 23.14% | ||
| GM | 44.34% |
OM growth 3Y23.04%
OM growth 5Y13.79%
PM growth 3Y19.83%
PM growth 5Y-7.27%
GM growth 3Y-12.75%
GM growth 5Y-3.57%
2. Health
2.1 Basic Checks
EBR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EBR has about the same amount of shares outstanding.
The number of shares outstanding for EBR has been increased compared to 5 years ago.
The debt/assets ratio for EBR is higher compared to a year ago.
2.2 Solvency
EBR has an Altman-Z score of 1.17. This is a bad value and indicates that EBR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EBR (1.17) is better than 70.21% of its industry peers.
EBR has a debt to FCF ratio of 6.36. This is a slightly negative value and a sign of low solvency as EBR would need 6.36 years to pay back of all of its debts.
EBR has a Debt to FCF ratio of 6.36. This is amongst the best in the industry. EBR outperforms 85.11% of its industry peers.
EBR has a Debt/Equity ratio of 0.51. This is a neutral value indicating EBR is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.51, EBR belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.66
WACC10.23%
2.3 Liquidity
A Current Ratio of 2.29 indicates that EBR has no problem at all paying its short term obligations.
EBR has a Current ratio of 2.29. This is amongst the best in the industry. EBR outperforms 91.49% of its industry peers.
A Quick Ratio of 2.27 indicates that EBR has no problem at all paying its short term obligations.
EBR has a better Quick ratio (2.27) than 95.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 153.44% over the past year.
Measured over the past years, EBR shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.22% on average per year.
Looking at the last year, EBR shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)153.44%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%153.33%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.22%
Revenue growth 5Y6.22%
Sales Q2Q%19.45%
3.2 Future
The Earnings Per Share is expected to grow by 11.58% on average over the next years. This is quite good.
Based on estimates for the next years, EBR will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y3.06%
EPS Next 2Y15.49%
EPS Next 3Y11.58%
EPS Next 5YN/A
Revenue Next Year1.02%
Revenue Next 2Y5.44%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EBR is valuated reasonably with a Price/Earnings ratio of 8.31.
Compared to the rest of the industry, the Price/Earnings ratio of EBR indicates a somewhat cheap valuation: EBR is cheaper than 76.60% of the companies listed in the same industry.
EBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.18.
Based on the Price/Forward Earnings ratio of 6.50, the valuation of EBR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EBR indicates a rather cheap valuation: EBR is cheaper than 87.23% of the companies listed in the same industry.
EBR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 6.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBR is valued cheaply inside the industry as 91.49% of the companies are valued more expensively.
EBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EBR is cheaper than 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EBR does not grow enough to justify the current Price/Earnings ratio.
EBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y15.49%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, EBR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.64, EBR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, EBR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of EBR decreases each year by -7.84%.
EBR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
36.11% of the earnings are spent on dividend by EBR. This is a low number and sustainable payout ratio.
DP36.11%
EPS Next 2Y15.49%
EPS Next 3Y11.58%
7.06
+0.11 (+1.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.37%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.88B
Analysts83.75
Price Target9 (27.48%)
Short Float %1.44%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend0.1
Dividend Growth(5Y)-7.84%
DP36.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.48%
Min EPS beat(2)-59.46%
Max EPS beat(2)-41.5%
EPS beat(4)1
Avg EPS beat(4)26.3%
Min EPS beat(4)-59.46%
Max EPS beat(4)209.1%
EPS beat(8)2
Avg EPS beat(8)-5.16%
EPS beat(12)3
Avg EPS beat(12)-48.35%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.3%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)13.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-14.75%
Max Revenue beat(4)13.26%
Revenue beat(8)3
Avg Revenue beat(8)-3.16%
Revenue beat(12)6
Avg Revenue beat(12)6.65%
Revenue beat(16)9
Avg Revenue beat(16)9.27%
PT rev (1m)4.18%
PT rev (3m)0.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 6.5 | ||
| P/S | 2.12 | ||
| P/FCF | 7.96 | ||
| P/OCF | 6.25 | ||
| P/B | 0.73 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.85
EY12.04%
EPS(NY)1.09
Fwd EY15.37%
FCF(TTM)0.89
FCFY12.56%
OCF(TTM)1.13
OCFY16.01%
SpS3.32
BVpS9.64
TBVpS3.49
PEG (NY)2.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 7.98% | ||
| ROCE | 8.5% | ||
| ROIC | 6.71% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 9.61% | ||
| OM | 52.13% | ||
| PM (TTM) | 23.14% | ||
| GM | 44.34% | ||
| FCFM | 26.68% |
ROA(3y)2.21%
ROA(5y)2.63%
ROE(3y)5.29%
ROE(5y)6.38%
ROIC(3y)4.35%
ROIC(5y)4.41%
ROICexc(3y)4.42%
ROICexc(5y)4.63%
ROICexgc(3y)6.52%
ROICexgc(5y)5.94%
ROCE(3y)5.51%
ROCE(5y)5.58%
ROICexcg growth 3Y16.63%
ROICexcg growth 5Y15.07%
ROICexc growth 3Y4.61%
ROICexc growth 5Y7.17%
OM growth 3Y23.04%
OM growth 5Y13.79%
PM growth 3Y19.83%
PM growth 5Y-7.27%
GM growth 3Y-12.75%
GM growth 5Y-3.57%
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 6.36 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 74.77% | ||
| Cap/Sales | 7.33% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 54.9% | ||
| Profit Quality | 115.26% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 1.17 |
F-Score6
WACC10.23%
ROIC/WACC0.66
Cap/Depr(3y)484.02%
Cap/Depr(5y)342.01%
Cap/Sales(3y)39.51%
Cap/Sales(5y)26.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)153.44%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%153.33%
EPS Next Y3.06%
EPS Next 2Y15.49%
EPS Next 3Y11.58%
EPS Next 5YN/A
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.22%
Revenue growth 5Y6.22%
Sales Q2Q%19.45%
Revenue Next Year1.02%
Revenue Next 2Y5.44%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
EBIT growth 1Y62.05%
EBIT growth 3Y25.77%
EBIT growth 5Y20.87%
EBIT Next Year36.68%
EBIT Next 3Y21.02%
EBIT Next 5YN/A
FCF growth 1Y144.04%
FCF growth 3Y16.96%
FCF growth 5YN/A
OCF growth 1Y63.78%
OCF growth 3Y14.6%
OCF growth 5YN/A