Central Puerto SA (CEPU) AI Stock Analysis

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Central Puerto SA

(NYSE:CEPU)

65Neutral

Central Puerto SA's overall stock score reflects its solid financial performance with strong revenue growth and profitability, moderated by the need for careful management of debt levels and income stability. Technical indicators show a neutral to slightly bearish trend, while valuation suggests the stock may be overvalued. The earnings call revealed strong operational metrics but also highlighted some challenges, including a quarterly net income loss and project delays. These factors combine to indicate a moderate investment potential.

Central Puerto SA (CEPU) vs. S&P 500 (SPY)

Market Cap

$1.62B

Dividend Yield3.39%

Average Volume (3M)273.98K

Price to Earnings (P/E)29.0

Beta (1Y)0.89

Revenue Growth-14.28%

EPS Growth-85.93%

CountryUS

Employees865

SectorUtilities

Sector Strength84

IndustryRegulated Electric

Share Statistics

EPS (TTM)0.33

Shares Outstanding151,402,220

10 Day Avg. Volume197,024

30 Day Avg. Volume273,982

Financial Highlights & Ratios

PEG Ratio0.00709

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.00

Price Target Upside24.52% Upside

Rating ConsensusHold

Number of Analyst Covering0

Central Puerto SA Business Overview & Revenue Model

Company DescriptionCentral Puerto S.A. generates and sells electric power to private and public customers in Argentina. It also produces steam. As of December 31, 2021, the company owned and operated five thermal generation plants, one hydroelectric generation plant, and seven wind farms with a total installed capacity of 4,809 MW. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

How the Company Makes MoneyCentral Puerto SA generates revenue primarily through the sale of electricity to the Argentine wholesale electricity market. The company's key revenue streams include long-term power purchase agreements (PPAs) with large industrial customers and contracts with the government for energy provision. Central Puerto SA also benefits from capacity payments, which are compensation for maintaining available energy capacity to ensure grid reliability. Additionally, the company engages in the trading of electricity and related financial instruments. Significant partnerships with government entities and adherence to regulatory frameworks also play a crucial role in ensuring a steady revenue flow.

Central Puerto SA Financial Statement Overview

Summary

Central Puerto SA demonstrates strong revenue growth and profitability with a stable balance sheet. The company shows effective cash management, though there are fluctuations in net income and cash flow growth rates, indicating some financial volatility.

Income Statement

Positive

The income statement of Central Puerto SA shows strong profitability with a consistent increase in total revenue over the years, indicating a positive growth trajectory. The gross profit margin and net profit margin are healthy, reflecting efficient cost management. However, the net income has shown significant fluctuations, which could indicate some underlying instability.

Balance Sheet

Positive

Central Puerto SA has a solid balance sheet with a favorable equity ratio, indicating strong capitalization. The debt-to-equity ratio is reasonable, suggesting moderate leverage. The company has maintained a strong stockholders' equity position. However, the total debt levels need careful monitoring to prevent potential risks.

Cash Flow

Positive

The cash flow statement reveals robust operating cash flows, which support the company's ability to finance its capital expenditures and maintain liquidity. The free cash flow has been positive, indicating efficient cash management. However, fluctuations in free cash flow growth rates highlight potential volatility in cash generation.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
738.17B	313.57B	101.39B	57.08B	38.11B
	Gross Profit
291.62B	103.40B	48.07B	27.52B	21.29B
	EBIT
197.20B	338.22B	101.56B	25.71B	20.34B
	EBITDA
303.86B	259.62B	160.56B	139.78B	64.82B
	Net Income Common Stockholders
49.60B	148.04B	19.04B	-647.86M	6.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
244.02B	103.31B	50.99B	20.12B	14.36B
	Total Assets
2.66T	1.40T	381.94B	200.96B	158.39B
	Total Debt
380.79B	335.18B	63.43B	42.15B	49.74B
	Net Debt
376.95B	321.71B	54.18B	41.86B	49.46B
	Total Liabilities
798.95B	546.72B	120.59B	74.16B	73.88B
	Stockholders Equity
1.80T	834.82B	261.16B	126.63B	84.38B
Cash Flow		Free Cash Flow
115.72B	115.78B	52.29B	20.66B	7.32B
	Operating Cash Flow
258.22B	125.61B	55.64B	26.04B	19.29B
	Investing Cash Flow
-164.91B	-63.58B	-31.26B	-6.92B	-17.29B
	Financing Cash Flow
-109.81B	-79.75B	-16.31B	-19.17B	-3.68B

Central Puerto SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.44

Price Trends

50DMA

11.49

Negative

100DMA

12.87

Negative

200DMA

11.49

Negative

Market Momentum

MACD

-0.25

Positive

RSI

41.64

Neutral

STOCH

3.75

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEPU, the sentiment is Negative. The current price of 10.44 is below the 20-day moving average (MA) of 10.69, below the 50-day MA of 11.49, and below the 200-day MA of 11.49, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 3.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEPU.

Central Puerto SA Risk Analysis

Central Puerto SA disclosed 69 risk factors in its most recent earnings report. Central Puerto SA reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Central Puerto SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR	80 Outperform	$18.27B	8.99	9.37%	3.62%	-0.26%	107.20%
GNE	75 Outperform	$415.67M	33.21	7.99%	1.95%	-0.82%	-39.38%
EDN	69 Neutral	$1.38B	4.77	27.25%	―	-0.20%	―
ENIC	68 Neutral	$4.87B	32.22	3.23%	6.25%	-17.27%	-77.67%
CEPU	65 Neutral	$1.62B	28.96	3.52%	3.39%	-14.28%	-85.93%
Sector *	63 Neutral	$8.48B	11.84	5.32%	4.35%	3.04%	-11.46%

* Utilities Sector Average

Performance Comparison

CEPU

Central Puerto SA

10.44

-0.34

-3.15%

EDN

Edenor SA

29.73

9.54

47.25%

GNE

Genie Energy Commo

15.39

-0.02

-0.13%

EBR

Centrais Eletricas Brasileiras SA - Eletrobras

7.69

0.26

3.50%

ENIC

Enel Chile SA

3.58

0.84

30.66%

Central Puerto SA Earnings Call Summary

Earnings Call Date:Mar 11, 2025

(Q4-2024)

% Change Since: -10.85%|

Next Earnings Date:May 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive and negative aspects. Significant revenue growth and an increase in adjusted EBITDA were overshadowed by a net income loss for the quarter. While there are promising renewable energy initiatives and a reduction in net debt, challenges such as project delays and a decline in hydro energy generation were also notable.

Q4-2024 Updates

Positive Updates

Significant Revenue Growth

Revenues for the fourth quarter of 2024 amounted to $168 million, increasing 71% year-over-year compared to the fourth quarter of 2023. The annual figure reached $671 million, rising 25%.

Increase in Adjusted EBITDA

Adjusted EBITDA rose 44% year-over-year for the fourth quarter of 2024 to $65 million, whereas the annual metric increased 4% to $288 million.

Reduction in Net Debt

Net debt as of December 31, 2024, amounted to $132 million, a reduction of $154 million compared to December of 2023, showcasing a net debt to adjusted EBITDA ratio of about 0.5 times.

Renewable Energy Initiatives

Central Puerto announced plans for a high-voltage transmission line project in Northwestern Argentina and increased its equity in mining projects, including a 27.5% stake in a lithium project.

Negative Updates

Net Income Loss

Net income for the fourth quarter of 2024 was negative $28 million, although the result for the fiscal year of 2024 was positive $52 million.

Hydro Energy Generation Decline

Hydro energy generation from Piedra del Aguila dropped 31% due to a 7% reduction in water levels of the Collón Curá River and 22% in the Limay River.

Project Delays

The San Carlos Solar plant project experienced delays in its workflow, although the Brigadier Lopez combined cycle project is on schedule.

Company Guidance

In the earnings call for Central Puerto's fourth quarter and fiscal year 2024, several key financial metrics and updates were discussed. The company's installed capacity remained steady at 6,703 megawatts, with energy generation increasing by 5% year-over-year to 5.4 terawatt hours in the fourth quarter, and annual generation rising by 4% to 21.6 terawatt hours. Financially, the fourth quarter revenues were $168 million, marking a 71% increase from the previous year, while annual revenues rose by 25% to $671 million. Adjusted EBITDA for the quarter increased by 44% to $65 million, with an annual increase of 4% to $288 million. Despite these gains, the company reported a net loss of $28 million for the fourth quarter, although the fiscal year ended with a positive net income of $52 million. Net debt was reduced to $132 million by the end of the year, showing a significant reduction of $154 million compared to December 2023, resulting in a net debt to adjusted EBITDA ratio of 0.5 times. Regulatory updates included monthly spot price adjustments and the introduction of a new regulatory framework aiming to deregulate the electricity industry, with plans to implement further changes by November 2025. Additionally, Central Puerto announced a high-voltage transmission line project and investments in the lithium mining sector.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.