CENTRAIS ELETRICAS BR-SP ADR (EBR) Stock Fundamental Analysis
USA - NYSE:EBR - US15234Q2075 - ADR
9.45 USD
-0.24 (-2.48%)
9.2803 USD
-0.17 (-1.8%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make EBR suitable 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.
EBR had positive earnings in each of the past 5 years.
EBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EBR (3.44%) is better than 72.34% of its industry peers.
EBR's Return On Equity of 7.98% is on the low side compared to the rest of the industry. EBR is outperformed by 70.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.71%, EBR belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EBR is in line with the industry average of 4.95%.
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 in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EBR is destroying value.
EBR has about the same amout of shares outstanding than it did 1 year ago.
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 1.27. This is a bad value and indicates that EBR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.27, EBR is doing good in the industry, outperforming 70.21% of the companies in the same industry.
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 89.36% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that EBR is somewhat dependend on debt financing.
EBR has a Debt to Equity ratio of 0.51. This is amongst the best in the industry. EBR outperforms 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 6.36 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.63
WACC10.73%
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.
The Current ratio of EBR (2.29) is better than 93.62% 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 Quick ratio of 2.27. This is amongst the best in the industry. EBR outperforms 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.27 |
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.
The Revenue has grown by 8.14% in the past year. This is quite good.
The Revenue has been growing slightly by 6.22% on average over the past years.
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
Based on estimates for the next years, EBR will show a small growth in Earnings Per Share. The EPS will grow by 6.29% on average per year.
Based on estimates for the next years, EBR will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y-33.42%
EPS Next 2Y5.94%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue Next Year-3.05%
Revenue Next 2Y3.24%
Revenue Next 3Y6.05%
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.
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
A Price/Earnings ratio of 10.86 indicates a reasonable valuation of EBR.
Based on the Price/Earnings ratio, EBR is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
EBR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
A Price/Forward Earnings ratio of 10.00 indicates a reasonable valuation of EBR.
EBR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBR is cheaper than 76.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. EBR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBR is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EBR is valued cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 7.22 |
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 2Y5.94%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
EBR has a Yearly Dividend Yield of 2.62%.
EBR's Dividend Yield is slightly below the industry average, which is at 3.37.
EBR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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 2Y5.94%
EPS Next 3Y6.29%
9.45
-0.24 (-2.48%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.31%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.25B
Analysts83.75
Price Target10.59 (12.06%)
Short Float %1.29%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)24.2%
Min EPS beat(4)-59.46%
Max EPS beat(4)209.1%
EPS beat(8)2
Avg EPS beat(8)-6.21%
EPS beat(12)3
Avg EPS beat(12)-49.05%
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)11.71%
PT rev (3m)17.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.57%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)-4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 10 | ||
| P/S | 2.7 | ||
| P/FCF | 10.14 | ||
| P/OCF | 7.95 | ||
| P/B | 0.93 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)0.87
EY9.21%
EPS(NY)0.95
Fwd EY10%
FCF(TTM)0.93
FCFY9.87%
OCF(TTM)1.19
OCFY12.58%
SpS3.49
BVpS10.14
TBVpS3.67
PEG (NY)N/A
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 | 1.27 |
F-Score6
WACC10.73%
ROIC/WACC0.63
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-33.42%
EPS Next 2Y5.94%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue 1Y (TTM)8.14%
Revenue growth 3Y2.22%
Revenue growth 5Y6.22%
Sales Q2Q%21.49%
Revenue Next Year-3.05%
Revenue Next 2Y3.24%
Revenue Next 3Y6.05%
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 1Y144.04%
FCF growth 3Y16.96%
FCF growth 5YN/A
OCF growth 1Y63.78%
OCF growth 3Y14.6%
OCF growth 5YN/A