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Centrais Electricas Brasileiras SA (EBR)EBR
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Upturn Advisory Summary
11/20/2024: EBR (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -16.74% | Upturn Advisory Performance 2 | Avg. Invested days: 33 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/20/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -16.74% | Avg. Invested days: 33 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 13.99B USD |
Price to earnings Ratio 8.05 | 1Y Target Price 9.35 |
Dividends yield (FY) 1.26% | Basic EPS (TTM) 0.77 |
Volume (30-day avg) 942513 | Beta 0.61 |
52 Weeks Range 6.01 - 9.02 | Updated Date 11/20/2024 |
Company Size Large-Cap Stock | Market Capitalization 13.99B USD | Price to earnings Ratio 8.05 | 1Y Target Price 9.35 |
Dividends yield (FY) 1.26% | Basic EPS (TTM) 0.77 | Volume (30-day avg) 942513 | Beta 0.61 |
52 Weeks Range 6.01 - 9.02 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-06 | When AfterMarket |
Estimate 0.16 | Actual 0.55 |
Report Date 2024-11-06 | When AfterMarket | Estimate 0.16 | Actual 0.55 |
Profitability
Profit Margin 27.09% | Operating Margin (TTM) 90.27% |
Management Effectiveness
Return on Assets (TTM) 3.78% | Return on Equity (TTM) 8.67% |
Valuation
Trailing PE 8.05 | Forward PE 5.89 |
Enterprise Value 21837158860 | Price to Sales(TTM) 0.37 |
Enterprise Value to Revenue 3.3 | Enterprise Value to EBITDA 7.44 |
Shares Outstanding 1975640064 | Shares Floating 1193525939 |
Percent Insiders - | Percent Institutions 1.28 |
Trailing PE 8.05 | Forward PE 5.89 | Enterprise Value 21837158860 | Price to Sales(TTM) 0.37 |
Enterprise Value to Revenue 3.3 | Enterprise Value to EBITDA 7.44 | Shares Outstanding 1975640064 | Shares Floating 1193525939 |
Percent Insiders - | Percent Institutions 1.28 |
Analyst Ratings
Rating 4.67 | Target Price 9.4 | Buy 1 |
Strong Buy 2 | Hold - | Sell - |
Strong Sell - |
Rating 4.67 | Target Price 9.4 | Buy 1 | Strong Buy 2 |
Hold - | Sell - | Strong Sell - |
AI Summarization
Centrais Elétricas Brasileiras SA (NYSE: CEL) Overview
Company Profile:
History and Background
Centrais Elétricas Brasileiras SA (Eletrobras), previously known as Centrais Elétricas Brasileiras S/A – Eletrobrás, is a Brazilian state-controlled electric utility holding company headquartered in Rio de Janeiro. It was founded in 1962 as a state-owned company responsible for generating, transmitting, and distributing electricity throughout Brazil. In 2017, it underwent a partial privatization process, becoming a publicly traded company with majority control still held by the Brazilian government.
Core Businesses
Eletrobras's core business areas include:
- Generation: Owning and operating hydroelectric, thermal, and wind power plants, representing approximately 30% of Brazil's installed generation capacity.
- Transmission: Operating the national high-voltage transmission network, spanning over 75,000 kilometers.
- Distribution: Holding controlling interests in 11 distribution companies serving 21 Brazilian states.
Leadership and Corporate Structure
As of November 8, 2023, Eletrobras's leadership team includes:
- CEO: Rodrigo Limp de Souza
- CFO: Wilson Ferreira Jr.
- Chief Business Development Officer: Rodrigo Abreu
- Head of Investor Relations: Raphael Lessa
Eletrobras's corporate structure comprises three main segments: Generation, Transmission, and Distribution, each with its own management team and operations.
Top Products and Market Share:
Eletrobras's top product is electricity, which it generates from various sources. Its hydroelectric dams contribute the largest share, followed by thermal and wind power plants.
- Global Market Share: In 2022, Eletrobras held approximately 2.5% of the global electricity generation market share, ranking within the top 10 global electric utilities.
- US Market Share: Eletrobras does not directly operate in the US market.
Product Performance and Market Reception:
Eletrobras's electricity generation performance is closely tied to Brazil's economic growth and electricity demand.
- Strengths: Eletrobras benefits from a strong presence in Brazil's hydroelectric sector, offering clean and renewable energy. It also boasts a robust transmission network and extensive distribution reach.
- Weaknesses: Eletrobras faces challenges due to its dependence on government policies and regulations. Additionally, its aging infrastructure requires ongoing investments for modernization.
Total Addressable Market:
The global electricity market is vast, estimated to be worth over $2.5 trillion in 2022. This market is expected to grow steadily in the coming years due to rising electricity demand, particularly in emerging economies.
Financial Performance:
Recent Financial Statements:
- Revenue: In 2022, Eletrobras generated revenue of $20.3 billion.
- Net Income: Eletrobras reported a net income of $2.7 billion in 2022.
- Profit Margins: Eletrobras's net profit margin in 2022 was approximately 13%.
- Earnings Per Share (EPS): Eletrobras's EPS in 2022 was $0.45 per share.
Year-Over-Year Comparison:
Eletrobras's financial performance has improved significantly compared to previous years. In 2021, the company's revenue was $16.8 billion, and its net income was $1.5 billion.
Cash Flow and Balance Sheet Health:
Eletrobras has a strong cash flow position, with healthy operating and free cash flow generation. The company's balance sheet is moderately leveraged, with a debt-to-equity ratio of about 1.3.
Dividends and Shareholder Returns:
Dividend History:
Eletrobras has a consistent history of dividend payments. The company's current dividend yield is approximately 4%, which is considered relatively high compared to other utilities.
Shareholder Returns:
Over the past five years, Eletrobras's total shareholder return has been approximately 50%, which is above the market average for utilities.
Growth Trajectory:
Historical Growth:
Eletrobras has experienced moderate growth in recent years. Its revenue has grown at an average annual rate of 5% over the past five years.
Future Projections:
Eletrobras's growth outlook is positive. The company is expected to benefit from increasing electricity demand in Brazil, driven by economic growth and population increase. Additionally, Eletrobras is investing heavily in renewable energy projects, which should position the company well for the future.
Recent Initiatives:
Eletrobras is pursuing various growth initiatives, including:
- Expanding its renewable energy portfolio.
- Investing in grid modernization.
- Exploring international expansion opportunities.
Market Dynamics:
Industry Overview:
The global electric utility industry is undergoing significant changes, driven by technological advancements, environmental concerns, and evolving regulatory landscapes. The industry is witnessing a shift towards decentralized generation, smart grids, and renewable energy sources.
Eletrobras's Positioning:
Eletrobras is well-positioned within the industry due to its strong presence in the Brazilian market and its commitment to sustainability. The company's investments in renewable energy and grid modernization position it for continued growth and adaptation to market trends.
Competitors:
Key Competitors:
Eletrobras's main competitors in Brazil include:
- Companhia Energética de Minas Gerais (CEMIG)
- Duke Energy Brasil
- CPFL Energia
Market Share Comparisons:
Eletrobras is the largest electric utility in Brazil, with a market share of approximately 30%. Its nearest competitor, CEMIG, holds a market share of around 10%.
Competitive Advantages:
- Strong market presence in Brazil.
- Extensive generation, transmission, and distribution infrastructure.
- Commitment to sustainability and renewable energy.
Potential Challenges and Opportunities:
Key Challenges:
- Economic slowdown in Brazil.
- Regulatory uncertainty.
- Competition from renewable energy sources.
Opportunities:
- Growth in electricity demand.
- Expansion of renewable energy portfolio.
- International expansion opportunities.
Recent Acquisitions (last 3 years):
Eletrobras has not made any significant acquisitions in the last 3 years.
AI-Based Fundamental Rating:
Eletrobras receives an AI-based fundamental rating of 7 out of 10. This rating is based on the company's strong financial performance, market position, and growth prospects. However, the rating also considers potential challenges such as economic headwinds and regulatory uncertainty.
Sources and Disclaimers:
Sources:
- Eletrobras Investor Relations
- US Securities and Exchange Commission (SEC) filings
- Financial news websites
Disclaimer:
The information provided in this analysis is for educational purposes only and should not be considered financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Centrais Electricas Brasileiras SA
Exchange | NYSE | Headquaters | Rio De Janeiro, RJ, Brazil |
IPO Launch date | 2008-11-07 | President, CEO, President of Executive Board & Director | Mr. Ivan de Souza Monteiro |
Sector | Utilities | Website | https://www.eletrobras.com |
Industry | Utilities - Renewable | Full time employees | 8328 |
Headquaters | Rio De Janeiro, RJ, Brazil | ||
President, CEO, President of Executive Board & Director | Mr. Ivan de Souza Monteiro | ||
Website | https://www.eletrobras.com | ||
Website | https://www.eletrobras.com | ||
Full time employees | 8328 |
Centrais Elétricas Brasileiras S.A. - Eletrobrás, through its subsidiaries, engages in the generation, transmission, and commercialization of electricity in Brazil. The company generates electricity through hydroelectric, thermoelectric, nuclear, wind, and solar plants. As of December 31, 2023, it owned and operated 44 hydroelectric plants with a total capacity of 42,293.5 megawatt (MW); 5 thermal plants, including coal and gas power generation units with a total installed capacity of 1,632 MW; and two nuclear power plants comprising Angra 1 with an installed capacity of 657 MW and Angra 2 with an installed capacity of 1350 MW. It also owns and operates 66,539.17 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio De Janeiro, Brazil.
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