COMPANHIA PARANAENSE DE ENER (ELP) Stock Fundamental Analysis
NYSE:ELP - New York Stock Exchange, Inc. - US20441B6056 - ADR - Currency: USD
ELP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. ELP has an average financial health and profitability rating. ELP is not valued too expensively and it also shows a decent growth rate. Finally ELP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ELP had positive earnings in the past year.
In the past year ELP had a positive cash flow from operations.
Each year in the past 5 years ELP has been profitable.
ELP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ELP's Return On Assets of 4.89% is amongst the best of the industry. ELP outperforms 80.85% of its industry peers.
Looking at the Return On Equity, with a value of 11.21%, ELP is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.38%, ELP belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ELP is significantly below the industry average of 38.54%.
The last Return On Invested Capital (7.38%) for ELP is above the 3 year average (6.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 11.21% | ||
| ROIC | 7.38% |
ROA(3y)3.73%
ROA(5y)5.9%
ROE(3y)8.58%
ROE(5y)13.6%
ROIC(3y)6.67%
ROIC(5y)7.83%
1.3 Margins
ELP has a Profit Margin (12.73%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ELP has remained more or less at the same level.
ELP's Operating Margin of 19.07% is in line compared to the rest of the industry. ELP outperforms 40.43% of its industry peers.
ELP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 22.10%, ELP is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ELP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.07% | ||
| PM (TTM) | 12.73% | ||
| GM | 22.1% |
OM growth 3Y-5.38%
OM growth 5Y-2.28%
PM growth 3Y-15.62%
PM growth 5Y-0.21%
GM growth 3Y2.11%
GM growth 5Y-4.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELP is destroying value.
The number of shares outstanding for ELP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ELP has more shares outstanding
Compared to 1 year ago, ELP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that ELP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, ELP belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ELP is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.61, ELP is doing good in the industry, outperforming 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.66
WACC11.17%
2.3 Liquidity
ELP has a Current Ratio of 1.48. This is a normal value and indicates that ELP is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.48, ELP is doing good in the industry, outperforming 78.72% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that ELP should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.47, ELP belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.36% over the past year.
ELP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.67% yearly.
ELP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.46%.
Measured over the past years, ELP shows a small growth in Revenue. The Revenue has been growing by 7.38% on average per year.
EPS 1Y (TTM)8.36%
EPS 3Y-22.84%
EPS 5Y0.67%
EPS Q2Q%21.05%
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-1.89%
Revenue growth 5Y7.38%
Sales Q2Q%8.77%
3.2 Future
The Earnings Per Share is expected to grow by 12.43% on average over the next years. This is quite good.
ELP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
EPS Next Y-1.36%
EPS Next 2Y14.86%
EPS Next 3Y12.43%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.11%
Revenue Next 3Y6.97%
Revenue Next 5Y3.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.27, which indicates a correct valuation of ELP.
ELP's Price/Earnings ratio is a bit cheaper when compared to the industry. ELP is cheaper than 63.83% of the companies in the same industry.
ELP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.40 indicates a reasonable valuation of ELP.
Based on the Price/Forward Earnings ratio, ELP is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
ELP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELP indicates a somewhat cheap valuation: ELP is cheaper than 63.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.17 |
4.3 Compensation for Growth
The decent profitability rating of ELP may justify a higher PE ratio.
ELP's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)21.24
EPS Next 2Y14.86%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
ELP has a Yearly Dividend Yield of 4.87%, which is a nice return.
ELP's Dividend Yield is rather good when compared to the industry average which is at 3.64. ELP pays more dividend than 85.11% of the companies in the same industry.
ELP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
On average, the dividend of ELP grows each year by 30.79%, which is quite nice.
ELP has been paying a dividend for at least 10 years, so it has a reliable track record.
ELP has decreased its dividend recently.
Dividend Growth(5Y)30.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ELP pays out 53.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
ELP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.89%
EPS Next 2Y14.86%
EPS Next 3Y12.43%
8.56
+0.17 (+2.03%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners34.84%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap6.35B
Analysts84
Price Target9.46 (10.51%)
Short Float %0.18%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend0.38
Dividend Growth(5Y)30.79%
DP53.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.24%
Min EPS beat(2)-39.52%
Max EPS beat(2)54%
EPS beat(4)1
Avg EPS beat(4)-5.11%
Min EPS beat(4)-39.52%
Max EPS beat(4)54%
EPS beat(8)2
Avg EPS beat(8)2.05%
EPS beat(12)4
Avg EPS beat(12)-13.43%
EPS beat(16)6
Avg EPS beat(16)20.81%
Revenue beat(2)2
Avg Revenue beat(2)15.07%
Min Revenue beat(2)8.25%
Max Revenue beat(2)21.89%
Revenue beat(4)4
Avg Revenue beat(4)12.2%
Min Revenue beat(4)3.75%
Max Revenue beat(4)21.89%
Revenue beat(8)8
Avg Revenue beat(8)10.23%
Revenue beat(12)12
Avg Revenue beat(12)14.36%
Revenue beat(16)16
Avg Revenue beat(16)20.22%
PT rev (1m)1.93%
PT rev (3m)19.93%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-9.01%
EPS NY rev (1m)0%
EPS NY rev (3m)8.9%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)2.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 11.4 | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 9.79 | ||
| P/B | 1.35 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 9.17 |
EPS(TTM)0.6
EY7.01%
EPS(NY)0.75
Fwd EY8.77%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)0.87
OCFY10.21%
SpS5.6
BVpS6.36
TBVpS2.33
PEG (NY)N/A
PEG (5Y)21.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 11.21% | ||
| ROCE | 8.93% | ||
| ROIC | 7.38% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 11.14% | ||
| OM | 19.07% | ||
| PM (TTM) | 12.73% | ||
| GM | 22.1% | ||
| FCFM | N/A |
ROA(3y)3.73%
ROA(5y)5.9%
ROE(3y)8.58%
ROE(5y)13.6%
ROIC(3y)6.67%
ROIC(5y)7.83%
ROICexc(3y)6.82%
ROICexc(5y)8.31%
ROICexgc(3y)9.6%
ROICexgc(5y)11.21%
ROCE(3y)8.07%
ROCE(5y)9.48%
ROICexcg growth 3Y-9.19%
ROICexcg growth 5Y-0.49%
ROICexc growth 3Y-13.78%
ROICexc growth 5Y-4.32%
OM growth 3Y-5.38%
OM growth 5Y-2.28%
PM growth 3Y-15.62%
PM growth 5Y-0.21%
GM growth 3Y2.11%
GM growth 5Y-4.9%
F-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 289.83% | ||
| Cap/Sales | 18.23% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 61.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.62 |
F-Score5
WACC11.17%
ROIC/WACC0.66
Cap/Depr(3y)126.17%
Cap/Depr(5y)86.72%
Cap/Sales(3y)8.03%
Cap/Sales(5y)5.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.36%
EPS 3Y-22.84%
EPS 5Y0.67%
EPS Q2Q%21.05%
EPS Next Y-1.36%
EPS Next 2Y14.86%
EPS Next 3Y12.43%
EPS Next 5YN/A
Revenue 1Y (TTM)5.46%
Revenue growth 3Y-1.89%
Revenue growth 5Y7.38%
Sales Q2Q%8.77%
Revenue Next Year4.67%
Revenue Next 2Y5.11%
Revenue Next 3Y6.97%
Revenue Next 5Y3.8%
EBIT growth 1Y9.99%
EBIT growth 3Y-7.17%
EBIT growth 5Y4.93%
EBIT Next Year60.55%
EBIT Next 3Y22.1%
EBIT Next 5Y14.23%
FCF growth 1Y-129.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.77%
OCF growth 3Y0.07%
OCF growth 5Y2.88%