CENTRAIS ELETRICAS BR-SP ADR (EBR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EBR - US15234Q2075 - ADR
11.03 USD
+0.11 (+1.01%)
11.15 USD
+0.12 (+1.09%)
EBR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. EBR has only an average score on both its financial health and profitability. EBR has a decent growth rate and is not valued too expensively.
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.
EBR had positive earnings in each of the past 5 years.
In the past 5 years EBR always reported a positive cash flow from operatings.
1.2 Ratios
EBR has a Return On Assets of 2.41%. This is in the lower half of the industry: EBR underperforms 68.75% of its industry peers.
Looking at the Return On Equity, with a value of 5.58%, EBR is doing worse than 83.33% of the companies in the same industry.
EBR has a Return On Invested Capital of 5.92%. This is amongst the best in the industry. EBR outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EBR is in line with the industry average of 4.92%.
The last Return On Invested Capital (5.92%) for EBR is above the 3 year average (4.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROIC | 5.92% |
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 15.17% is fine compared to the rest of the industry. EBR outperforms 62.50% of its industry peers.
EBR's Profit Margin has declined in the last couple of years.
EBR has a Operating Margin of 42.58%. This is amongst the best in the industry. EBR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of EBR has grown nicely.
The Gross Margin of EBR (45.12%) 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 | 42.58% | ||
| PM (TTM) | 15.17% | ||
| GM | 45.12% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 1.27. This is a bad value and indicates that EBR is not financially healthy and even has some risk of bankruptcy.
EBR has a Altman-Z score of 1.27. This is in the better half of the industry: EBR outperforms 70.83% of its industry peers.
The Debt to FCF ratio of EBR is 5.19, which is a neutral value as it means it would take EBR, 5.19 years of fcf income to pay off all of its debts.
EBR's Debt to FCF ratio of 5.19 is amongst the best of the industry. EBR outperforms 89.58% of its industry peers.
EBR has a Debt/Equity ratio of 0.50. This is a neutral value indicating EBR is somewhat dependend on debt financing.
The Debt to Equity ratio of EBR (0.50) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.54
WACC10.89%
2.3 Liquidity
EBR has a Current Ratio of 1.86. This is a normal value and indicates that EBR is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.86, EBR belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 1.85 indicates that EBR should not have too much problems paying its short term obligations.
EBR has a better Quick ratio (1.85) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 141.15% 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.
EBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.22% yearly.
EPS 1Y (TTM)141.15%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%-12.16%
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 8.58% 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 5.67% yearly.
EPS Next Y-33.3%
EPS Next 2Y6.18%
EPS Next 3Y8.58%
EPS Next 5YN/A
Revenue Next Year-4.66%
Revenue Next 2Y3.22%
Revenue Next 3Y5.67%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EBR is valuated correctly with a Price/Earnings ratio of 12.68.
Compared to the rest of the industry, the Price/Earnings ratio of EBR indicates a somewhat cheap valuation: EBR is cheaper than 68.75% of the companies listed in the same industry.
EBR is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.56, the valuation of EBR can be described as reasonable.
Based on the Price/Forward Earnings ratio, EBR is valued a bit cheaper than 75.00% of the companies in the same industry.
EBR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than EBR, based on the Enterprise Value to EBITDA ratio.
EBR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EBR is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
EBR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.18%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, EBR has a reasonable but not impressive dividend return.
EBR's Dividend Yield is slightly below the industry average, which is at 3.41.
EBR's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
EBR pays out 60.56% of its income as dividend. This is not a sustainable payout ratio.
DP60.56%
EPS Next 2Y6.18%
EPS Next 3Y8.58%
11.03
+0.11 (+1.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.31%
Inst Owner Change6.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.80B
Revenue(TTM)43.68B
Net Income(TTM)6.63B
Analysts83.75
Price Target11.45 (3.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.11
Dividend Growth(5Y)-7.84%
DP60.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.97%
Min EPS beat(2)-59.46%
Max EPS beat(2)-10.49%
EPS beat(4)1
Avg EPS beat(4)24.41%
Min EPS beat(4)-59.46%
Max EPS beat(4)209.1%
EPS beat(8)1
Avg EPS beat(8)-9.63%
EPS beat(12)2
Avg EPS beat(12)-54.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.05%
Min Revenue beat(2)-11.45%
Max Revenue beat(2)-0.66%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-11.45%
Max Revenue beat(4)13.26%
Revenue beat(8)2
Avg Revenue beat(8)-5.67%
Revenue beat(12)5
Avg Revenue beat(12)-3.24%
Revenue beat(16)9
Avg Revenue beat(16)8.69%
PT rev (1m)8.17%
PT rev (3m)22.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-36.28%
Revenue NQ rev (1m)5.9%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.56 | ||
| P/S | 3.01 | ||
| P/FCF | 9.66 | ||
| P/OCF | 8.06 | ||
| P/B | 1.11 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)0.87
EY7.89%
EPS(NY)0.95
Fwd EY8.65%
FCF(TTM)1.14
FCFY10.36%
OCF(TTM)1.37
OCFY12.41%
SpS3.66
BVpS9.96
TBVpS3.48
PEG (NY)N/A
PEG (5Y)N/A
Graham Number13.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROCE | 7.5% | ||
| ROIC | 5.92% | ||
| ROICexc | 5.92% | ||
| ROICexgc | 8.6% | ||
| OM | 42.58% | ||
| PM (TTM) | 15.17% | ||
| GM | 45.12% | ||
| FCFM | 31.18% |
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%
ROICexgc growth 3Y16.63%
ROICexgc 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-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 63.44% | ||
| Cap/Sales | 6.2% | ||
| Interest Coverage | 3.05 | ||
| Cash Conversion | 71.39% | ||
| Profit Quality | 205.49% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 1.27 |
F-Score7
WACC10.89%
ROIC/WACC0.54
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)141.15%
EPS 3Y8.61%
EPS 5Y-8.22%
EPS Q2Q%-12.16%
EPS Next Y-33.3%
EPS Next 2Y6.18%
EPS Next 3Y8.58%
EPS Next 5YN/A
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.22%
Revenue growth 5Y6.22%
Sales Q2Q%21.49%
Revenue Next Year-4.66%
Revenue Next 2Y3.22%
Revenue Next 3Y5.67%
Revenue Next 5YN/A
EBIT growth 1Y62.05%
EBIT growth 3Y25.77%
EBIT growth 5Y20.87%
EBIT Next Year34.14%
EBIT Next 3Y22.27%
EBIT Next 5YN/A
FCF growth 1Y115.39%
FCF growth 3Y16.96%
FCF growth 5YN/A
OCF growth 1Y50.41%
OCF growth 3Y14.6%
OCF growth 5YN/A
CENTRAIS ELETRICAS BR-SP ADR / EBR FAQ
What is the ChartMill fundamental rating of CENTRAIS ELETRICAS BR-SP ADR (EBR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EBR.
What is the valuation status of CENTRAIS ELETRICAS BR-SP ADR (EBR) stock?
ChartMill assigns a valuation rating of 6 / 10 to CENTRAIS ELETRICAS BR-SP ADR (EBR). This can be considered as Fairly Valued.
Can you provide the profitability details for CENTRAIS ELETRICAS BR-SP ADR?
CENTRAIS ELETRICAS BR-SP ADR (EBR) has a profitability rating of 6 / 10.
Can you provide the financial health for EBR stock?
The financial health rating of CENTRAIS ELETRICAS BR-SP ADR (EBR) is 5 / 10.
Can you provide the expected EPS growth for EBR stock?
The Earnings per Share (EPS) of CENTRAIS ELETRICAS BR-SP ADR (EBR) is expected to decline by -33.3% in the next year.