CENTRAIS ELETRICAS BR-SP ADR (EBR) Stock Fundamental Analysis
NYSE:EBR - New York Stock Exchange, Inc. - US15234Q2075 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to EBR. EBR was compared to 47 industry peers in the Electric Utilities industry. Both the profitability and the financial health of EBR get a neutral evaluation. Nothing too spectacular is happening here. EBR may be a bit undervalued, certainly considering the very reasonable score on growth 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.
Each year in the past 5 years EBR has been profitable.
In the past 5 years EBR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EBR (3.44%) is better 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.
The Return On Invested Capital of EBR (6.71%) is better than 82.98% of its industry peers.
EBR had an Average Return On Invested Capital over the past 3 years of 4.35%. This 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
EBR's Profit Margin of 23.14% is amongst the best of the industry. EBR outperforms 97.87% of its industry peers.
In the last couple of years the Profit Margin of EBR has declined.
With an excellent Operating Margin value of 52.13%, EBR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EBR has grown nicely.
EBR has a Gross Margin (44.34%) which is comparable to the rest of the industry.
EBR's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EBR is destroying value.
Compared to 1 year ago, EBR has about the same amount of shares outstanding.
EBR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EBR has a worse debt to assets ratio.
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.
The Debt to FCF ratio of EBR is 6.36, which is on the high side as it means it would take EBR, 6.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.36, EBR belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
EBR has a Debt/Equity ratio of 0.51. This is a neutral value indicating EBR is somewhat dependend on debt financing.
EBR's Debt to Equity ratio of 0.51 is amongst the best of the industry. EBR outperforms 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.59
WACC11.32%
2.3 Liquidity
EBR has a Current Ratio of 2.29. This indicates that EBR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.29, EBR belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
A Quick Ratio of 2.27 indicates that EBR has no problem at all paying its short term obligations.
EBR has a Quick ratio of 2.27. This is amongst the best in the industry. EBR outperforms 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.
The Earnings Per Share has been decreasing by -8.22% on average over the past years.
Looking at the last year, EBR shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
Measured over the past years, EBR shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
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.
EBR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
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
A Price/Earnings ratio of 8.30 indicates a reasonable valuation of EBR.
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.
The average S&P500 Price/Earnings ratio is at 26.35. EBR is valued rather cheaply when compared to this.
EBR is valuated cheaply with a Price/Forward Earnings ratio of 6.51.
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 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 6.51 |
4.2 Price Multiples
91.49% of the companies in the same industry are more expensive than EBR, based on the Enterprise Value to EBITDA ratio.
93.62% of the companies in the same industry are more expensive than EBR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EBR 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
EBR has a Yearly Dividend Yield of 4.04%, which is a nice return.
Compared to an average industry Dividend Yield of 3.69, EBR pays a bit more dividend than its industry peers.
EBR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
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%
7.22
-0.18 (-2.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.37%
Inst Owner Change3.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.24B
Analysts83.75
Price Target9 (24.65%)
Short Float %0.73%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
Yearly Dividend0.11
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)-1.19%
PT rev (3m)3.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 6.51 | ||
| P/S | 2.13 | ||
| P/FCF | 7.97 | ||
| P/OCF | 6.25 | ||
| P/B | 0.73 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.87
EY12.05%
EPS(NY)1.11
Fwd EY15.35%
FCF(TTM)0.91
FCFY12.54%
OCF(TTM)1.15
OCFY15.99%
SpS3.4
BVpS9.85
TBVpS3.56
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
WACC11.32%
ROIC/WACC0.59
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