CENTRAIS ELETRICAS BR-SP ADR (EBR) Stock Fundamental Analysis
USA - NYSE:EBR - US15234Q2075 - ADR
11.03 USD
+0.11 (+1.01%)
11.15 USD
+0.12 (+1.09%)
We assign a fundamental rating of 5 out of 10 to EBR. EBR was compared to 47 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
In the past year EBR was profitable.
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
The Return On Assets of EBR (2.41%) is worse than 65.96% of its industry peers.
EBR has a worse Return On Equity (5.58%) than 82.98% of its industry peers.
EBR has a Return On Invested Capital of 5.92%. This is amongst the best in the industry. EBR outperforms 85.11% 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 4.90%.
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 has a Profit Margin of 15.17%. This is in the better half of the industry: EBR outperforms 61.70% of its industry peers.
EBR's Profit Margin has declined in the last couple of years.
The Operating Margin of EBR (42.58%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of EBR has grown nicely.
Looking at the Gross Margin, with a value of 45.12%, 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 | 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
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.
EBR has more shares outstanding than it did 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 1.27. This is a bad value and indicates that EBR is not financially healthy and even has some risk of bankruptcy.
EBR's Altman-Z score of 1.27 is fine compared to the rest of the industry. EBR outperforms 70.21% of its industry peers.
EBR has a debt to FCF ratio of 5.19. This is a neutral value as EBR would need 5.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.19, EBR belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that EBR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, EBR belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.53
WACC11.13%
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.
EBR has a Current ratio of 1.86. This is amongst the best in the industry. EBR outperforms 91.49% of its industry peers.
A Quick Ratio of 1.85 indicates that EBR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, EBR belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
EBR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 141.15%, which is quite impressive.
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.
Based on estimates for the next years, EBR will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
EBR is valuated correctly with a Price/Earnings ratio of 12.68.
Based on the Price/Earnings ratio, EBR is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, EBR is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.64, the valuation of EBR can be described as very reasonable.
EBR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBR is cheaper than 74.47% of the companies 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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
74.47% of the companies in the same industry are more expensive than EBR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBR indicates a rather cheap valuation: EBR is cheaper than 87.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The decent profitability rating of EBR 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 2.97%, EBR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, EBR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, EBR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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
60.56% of the earnings are spent on dividend by EBR. 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 Change1.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.80B
Revenue(TTM)43.68B
Net Income(TTM)6.63B
Analysts83.75
Price Target11.36 (2.99%)
Short Float %0.96%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)12.09%
PT rev (3m)25.09%
EPS NQ rev (1m)3.11%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-36.39%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-6.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.64 | ||
| P/S | 3.03 | ||
| P/FCF | 9.72 | ||
| P/OCF | 8.11 | ||
| P/B | 1.12 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)0.87
EY7.89%
EPS(NY)0.95
Fwd EY8.59%
FCF(TTM)1.13
FCFY10.29%
OCF(TTM)1.36
OCFY12.33%
SpS3.64
BVpS9.89
TBVpS3.45
PEG (NY)N/A
PEG (5Y)N/A
Graham Number13.91
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
WACC11.13%
ROIC/WACC0.53
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.