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Centrais Elc Braz Pfb B Elbras (EBR.B)
NYSE:EBR.B
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Centrais Elc Braz Pfb B Elbras
(NYSE:EBR.B)
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Rating:79Outperform
Price Target:
$9.00
â–¼(-16.43% Downside)
The overall stock score is driven by strong financial performance and positive technical indicators. The attractive valuation and positive earnings call sentiment further enhance the score. While regulatory challenges exist, the company's strategic initiatives and financial health position it well for future growth.
Centrais Elc Braz Pfb B Elbras (EBR.B) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.41B
Dividend Yield6.09%
Average Volume (3M)11.86K
Price to Earnings (P/E)19.5
Beta (1Y)0.49
Revenue Growth6.41%
EPS Growth37.23%
CountryUS
Employees7,710
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.10
Shares Outstanding279,941,000
10 Day Avg. Volume8,791
30 Day Avg. Volume11,864
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit0.74
Enterprise Value/Ebitda1.54
Forecast
1Y Price Target
$9.00Price Target Upside-16.43% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Centrais Elc Braz Pfb B Elbras Business Overview & Revenue Model
Company DescriptionCentrais Elétricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through hydroelectric, thermal, nuclear, wind, and solar plants. As of December 31, 2021, it owned and operated 32 hydroelectric plants with a total installed capacity of 46,295.75 megawatts; nine thermal plants, including coal, and oil and gas power generation units with a total installed capacity of 1,505 megawatts; and two nuclear power plants comprising Angra I with an installed capacity of 640 megawatts and Angra II with an installed capacity of 1,350 megawatts. It also operates 66,556 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio de Janeiro, Brazil.
How the Company Makes MoneyEBR.B generates revenue primarily through the sale of electricity to its customers. The company's revenue model is built on several key streams, including residential and commercial electricity tariffs, which are regulated by government authorities. Additionally, the company may benefit from long-term contracts and agreements with industrial clients that provide a stable income. Significant partnerships with governmental bodies and other energy providers can also enhance its market position and contribute to earnings. Furthermore, investments in renewable energy projects may open up additional revenue streams as the demand for sustainable energy solutions increases.
Centrais Elc Braz Pfb B Elbras Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company that is successfully navigating post-privatization challenges, with significant improvements in debt reduction, dividend payouts, and investment growth. However, regulatory adjustments and external market challenges such as GSF and liquidity issues present ongoing hurdles.Q2-2025 Updates
Positive Updates
Reduction of Compulsory Debt
Eletrobrás reduced its compulsory debt from BRL 20 billion to under BRL 12 billion, demonstrating effective liability management.
Record Dividend Payout
The company announced a BRL 4 billion dividend payout, indicating strong financial performance and commitment to shareholder returns.
Increase in Generation Margins
Contributions from generation increased by 21% compared to Q1 2025 and 16% compared to Q2 2024, offsetting a drop in transmission revenue.
Significant Investment Growth
Investments grew by 116% versus Q1 2025, focusing on reinforcements and improvements, with a target of over BRL 4 billion for the year.
Successful Completion of Infrastructure Projects
Completion of the Caladinho project and financial rebalancing for Transnorte Energia, including extending the concession term from 17 to 27 years.
Negative Updates
Reported Loss Due to Regulatory Adjustments
Eletrobrás reported a loss of BRL 1.3 billion, primarily due to the regulatory remeasurement of transmission contracts.
Challenges with GSF and Liquidity
The challenging GSF scenario and liquidity constraints affected the company's ability to fully capitalize on the high energy prices.
Company Guidance
During Eletrobrás' earnings call for the second quarter of 2025, the company provided guidance on several key metrics and strategic initiatives. CEO Ivan de Souza Monteiro highlighted the reduction of compulsory debt from BRL 20 billion to under BRL 12 billion and the announcement of a BRL 4 billion dividend payout. The company also reported a 21% increase in generation margins compared to Q1 and a 16% increase versus Q2 2024, despite a drop in transmission revenue. Investments grew significantly by 116% from the first quarter of 2025. Eletrobrás' net income adjusted for regulatory remeasurement would have reached BRL 1.4 billion, marking a 40% increase from the previous year. The company's energy trading strategy contributed BRL 1.6 billion in contribution margins for the second quarter. Additionally, they discussed the completion of significant projects like the Coxilha Negra Wind Farm and the Transnorte Energia transmission line. Moving forward, Eletrobrás aims to consolidate these initiatives, with a focus on increasing predictability, improving capital allocation, and continuing modernization efforts leveraging new technologies.Centrais Elc Braz Pfb B Elbras Financial Statement Overview
Summary
Centrais Elc Braz Pfb B Elbras demonstrates strong profitability with high gross and net profit margins, stable balance sheet, and positive cash flow growth trends. However, there is room for improvement in returns on equity and cash conversion efficiency.Income Statement
The company shows strong profitability with a high gross profit margin of 82.99% and a solid net profit margin of 23.16% in the TTM period. Revenue growth is positive at 4.31%, indicating steady growth. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.78
Positive
Balance Sheet
The balance sheet is stable with a moderate debt-to-equity ratio of 0.60, indicating a balanced approach to leverage. The return on equity is relatively low at 5.49%, suggesting room for improvement in generating returns from equity. The equity ratio is healthy, reflecting a strong equity base relative to total assets.72
Positive
Cash Flow
Cash flow performance is improving with a significant free cash flow growth rate of 19.77% in the TTM period. The operating cash flow to net income ratio is moderate at 0.56, indicating a decent conversion of net income to cash. However, the free cash flow to net income ratio of 0.78 suggests some constraints in converting earnings into free cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.68B | 40.18B | 37.16B | 34.07B | 37.62B | 29.08B |
| Gross Profit | 35.97B | 34.23B | 18.49B | 18.22B | 25.66B | 15.65B |
| EBITDA | 17.26B | 20.73B | 11.81B | 9.07B | 14.08B | 11.33B |
| Net Income | 6.63B | 10.38B | 4.55B | 2.65B | 5.65B | 6.39B |
Balance Sheet | ||||||
| Total Assets | 274.96B | 289.87B | 267.06B | 270.22B | 188.30B | 178.97B |
| Cash, Cash Equivalents and Short-Term Investments | 29.39B | 29.83B | 15.97B | 23.62B | 16.53B | 14.33B |
| Total Debt | 73.47B | 78.24B | 63.15B | 61.15B | 46.14B | 49.10B |
| Total Liabilities | 156.21B | 167.87B | 154.59B | 159.19B | 111.89B | 105.22B |
| Stockholders Equity | 118.71B | 121.86B | 112.33B | 110.50B | 76.12B | 73.48B |
Cash Flow | ||||||
| Free Cash Flow | 13.65B | 9.29B | 4.12B | -24.35B | -10.92B | 1.80B |
| Operating Cash Flow | 16.13B | 12.39B | 8.24B | 9.28B | -8.23B | 4.20B |
| Investing Cash Flow | -1.66B | -8.66B | 827.04M | -28.80B | 123.99M | 2.44B |
| Financing Cash Flow | -9.89B | 9.80B | -6.76B | 30.07B | -8.45B | -6.69B |
Centrais Elc Braz Pfb B Elbras Technical Analysis
Positive
10.77
Price Trends
9.46
Positive
8.58
Positive
7.90
Positive
Market Momentum
0.33
Positive
64.05
Neutral
77.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR.B, the sentiment is Positive. The current price of 10.77 is above the 20-day moving average (MA) of 10.31, above the 50-day MA of 9.46, and above the 200-day MA of 7.90, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 77.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.B.
Centrais Elc Braz Pfb B Elbras Risk Analysis
Centrais Elc Braz Pfb B Elbras disclosed 61 risk factors in its most recent earnings report. Centrais Elc Braz Pfb B Elbras 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
Centrais Elc Braz Pfb B Elbras Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.41B | 19.50 | 6.01% | 6.09% | 6.41% | 37.23% | |
77 Outperform | $23.74B | 18.95 | 6.01% | 6.11% | 6.41% | 37.23% | |
69 Neutral | $36.66B | 15.19 | 8.48% | 0.60% | -1.30% | -8.34% | |
69 Neutral | $6.01B | 29.34 | 6.36% | 2.82% | 10.23% | 114.67% | |
69 Neutral | $11.07B | 19.19 | 8.90% | 3.86% | 7.47% | -8.53% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $18.94B | 4.30 | 15.47% | 0.31% | 0.44% | 124.47% |
* Utilities Sector Average
EBR.B
Centrais Elc Braz Pfb B Elbras
10.77
3.98
58.62%
KEP
Korea Electric Power
15.32
7.43
94.17%
PCG
PG&E
16.75
-3.69
-18.05%
PNW
Pinnacle West Capital
92.23
7.59
8.97%
TXNM
TXNM Energy
57.07
14.97
35.56%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
10.15
3.90
62.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.