Centrais Elétricas Brasileiras S.A. - Eletrobrás Fundamental Analysis
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 17.06, profit margin of 22.30%, and ROE of 8.62%. The company generates $32.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ModerateEBR-B maintains healthy but balanced margins.
Key Financial Metrics
Is EBR-B Expensive or Cheap?
P/E Ratio
EBR-B trades at 17.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EBR-B's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Centrais Elétricas Brasileiras S.A. - Eletrobrás at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.62 times EBITDA. This is generally considered low.
How Well Does EBR-B Make Money?
Net Profit Margin
For every $100 in sales, Centrais Elétricas Brasileiras S.A. - Eletrobrás keeps $22.30 as profit after all expenses.
Operating Margin
Core operations generate 11.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.62 in profit for every $100 of shareholder equity.
ROA
Centrais Elétricas Brasileiras S.A. - Eletrobrás generates $3.51 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 $8.17B, reflecting robust business health.
Free Cash Flow
Centrais Elétricas Brasileiras S.A. - Eletrobrás generates strong free cash flow of $6.80B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.20 in free cash annually.
FCF Yield
EBR-B converts 7.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How EBR-B Stacks Against Its Sector Peers
| Metric | EBR-B Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.06 | 19.39 | Better (Cheaper) |
| ROE | 8.62% | 965.00% | Weak |
| Net Margin | 22.30% | 894.00% | Weak |
| Debt/Equity | 0.65 | 1.64 | Strong (Low Leverage) |
| Current Ratio | 2.11 | 1.66 | Strong Liquidity |
| ROA | 3.51% | 2399.00% | Weak |
EBR-B outperforms its industry in 3 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
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income