Centrais Elétricas Brasileiras S.A. - Eletrobrás
Centrais Elétricas Brasileiras S.A. - Eletrobrás Fundamental Analysis
Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR-B) shows moderate financial fundamentals with a PE ratio of -22.54, profit margin of -14.11%, and ROE of -5.11%. The company generates $40.3B in annual revenue with moderate year-over-year growth of 8.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EBR-B's fundamental strength across five key dimensions:
Efficiency Score
WeakEBR-B struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEBR-B trades at attractive valuation levels.
Growth Score
ModerateEBR-B shows steady but slowing expansion.
Financial Health Score
ExcellentEBR-B maintains a strong and stable balance sheet.
Profitability Score
WeakEBR-B struggles to sustain strong margins.
Key Financial Metrics
Is EBR-B Expensive or Cheap?
P/E Ratio
EBR-B trades at -22.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EBR-B's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Centrais Elétricas Brasileiras S.A. - Eletrobrás at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.22 times EBITDA. This signals the market has high growth expectations.
How Well Does EBR-B Make Money?
Net Profit Margin
For every $100 in sales, Centrais Elétricas Brasileiras S.A. - Eletrobrás keeps $-14.11 as profit after all expenses.
Operating Margin
Core operations generate 3.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.11 in profit for every $100 of shareholder equity.
ROA
Centrais Elétricas Brasileiras S.A. - Eletrobrás generates $-2.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Centrais Elétricas Brasileiras S.A. - Eletrobrás generates strong operating cash flow of $12.78B, reflecting robust business health.
Free Cash Flow
Centrais Elétricas Brasileiras S.A. - Eletrobrás generates strong free cash flow of $10.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.06 in free cash annually.
FCF Yield
EBR-B converts 8.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-22.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.007
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How EBR-B Stacks Against Its Sector Peers
| Metric | EBR-B Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -22.54 | 19.20 | Better (Cheaper) |
| ROE | -5.11% | 1033.00% | Weak |
| Net Margin | -14.11% | 9191.00% | Weak |
| Debt/Equity | 0.69 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.92 | 1.68 | Neutral |
| ROA | -2.26% | -237.00% (disorted) | Weak |
EBR-B outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Centrais Elétricas Brasileiras S.A. - Eletrobrás's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-12.86%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-16.34%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
8726.76%
Industry Style: Defensive, Dividend, Income
High Growth