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 scores excellent on profitability, but there are some minor concerns on its financial health. EBR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EBR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
EBR had positive earnings in the past year.
In the past year EBR had a positive cash flow from operations.
In the past 5 years EBR has always been profitable.
EBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EBR has a Return On Assets of 3.44%. This is in the better half of the industry: EBR outperforms 70.21% of its industry peers.
EBR has a worse Return On Equity (7.98%) than 70.21% of its industry peers.
The Return On Invested Capital of EBR (6.71%) is better than 87.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EBR is in line with the industry average of 5.09%.
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.
EBR's Operating Margin of 52.13% is amongst the best of the industry. EBR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of EBR has grown nicely.
EBR's Gross Margin of 44.34% is in line compared to the rest of the industry. EBR outperforms 46.81% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EBR is destroying value.
EBR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, EBR has more shares outstanding
EBR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that EBR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EBR (1.19) 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 better Debt to FCF ratio (6.36) than 87.23% 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 | 1.19 |
ROIC/WACC0.64
WACC10.49%
2.3 Liquidity
A Current Ratio of 2.29 indicates that EBR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, EBR belongs to the top 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 better Quick ratio (2.27) than 93.62% 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 132.66% over the past year.
The Earnings Per Share has been decreasing by -8.22% on average over the past years.
EBR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
The Revenue has been growing slightly by 6.22% on average over the past years.
EPS 1Y (TTM)132.66%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%-19.75%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.22%
Revenue growth 5Y6.22%
Sales Q2Q%21.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y3.06%
EPS Next 2Y15.49%
EPS Next 3Y11.58%
EPS Next 5YN/A
Revenue Next Year-3.14%
Revenue Next 2Y1.46%
Revenue Next 3Y4.89%
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
The Price/Earnings ratio is 9.21, which indicates a very decent valuation of EBR.
76.60% of the companies in the same industry are more expensive than EBR, based on the Price/Earnings ratio.
EBR is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.98, the valuation of EBR can be described as very cheap.
Based on the Price/Forward Earnings ratio, EBR is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, EBR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBR is valued cheaper than 91.49% of the companies in the same industry.
91.49% 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 | 8.55 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)N/A
EPS Next 2Y15.49%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
EBR has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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%
7.74
+0.08 (+1.04%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.37%
Inst Owner Change-7.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.41B
Analysts83.75
Price Target9.34 (20.67%)
Short Float %1.47%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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)3.79%
PT rev (3m)2.55%
EPS NQ rev (1m)5.22%
EPS NQ rev (3m)-24.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)-10.57%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)-4.12%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 6.98 | ||
| P/S | 2.28 | ||
| P/FCF | 8.55 | ||
| P/OCF | 6.7 | ||
| P/B | 0.79 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)0.84
EY10.85%
EPS(NY)1.11
Fwd EY14.32%
FCF(TTM)0.91
FCFY11.7%
OCF(TTM)1.15
OCFY14.92%
SpS3.4
BVpS9.85
TBVpS3.57
PEG (NY)3.01
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 | 1.19 |
F-Score6
WACC10.49%
ROIC/WACC0.64
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)132.66%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%-19.75%
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%21.49%
Revenue Next Year-3.14%
Revenue Next 2Y1.46%
Revenue Next 3Y4.89%
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