Companhia Energética do Rio Grande do Norte - COSERN (BOVESPA:CSRN3) - Share price, News & Analysis

CSRN3 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	2/6

CSRN3 Stock Overview

Companhia Energética do Rio Grande do Norte - COSERN engages in the distribution and transmission of electricity in Rio Grande do Norte.

Rewards

Price-To-Earnings ratio (6.7x) is below the BR market (8.1x)

Earnings grew by 50.9% over the past year

Risk Analysis

Has a high level of debt

Dividend of 2.49% is not well covered by earnings

Volatile share price over the past 3 months

Companhia Energética do Rio Grande do Norte - COSERN Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Companhia Energética do Rio Grande do Norte - COSERN
Historical stock prices
Current Share Price	R$22.35
52 Week High	R$28.17
52 Week Low	R$14.24
Beta	-0.11
1 Month Change	1.59%
3 Month Change	24.17%
1 Year Change	5.67%
3 Year Change	38.82%
5 Year Change	19.46%
Change since IPO	508.16%

Recent News & Updates

Mar 29

Returns On Capital Are A Standout For Companhia Energética do Rio Grande do Norte - COSERN (BVMF:CSRN3)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Shareholder Returns

	CSRN3	BR Electric Utilities	BR Market
7D	0%	-0.7%	-0.8%
1Y	5.7%	-4.2%	-29.7%

Return vs Industry: CSRN3 exceeded the BR Electric Utilities industry which returned -5.6% over the past year.

Return vs Market: CSRN3 exceeded the BR Market which returned -31.2% over the past year.

Price Volatility

Is CSRN3's price volatile compared to industry and market?
CSRN3 volatility
CSRN3 Average Weekly Movement	8.5%
Electric Utilities Industry Average Movement	4.5%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: CSRN3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CSRN3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

Founded	Employees	CEO	Website
1961	n/a	Marcio Vasconcelos	https://www.cosern.com.br

Companhia Energética do Rio Grande do Norte - COSERN engages in the distribution and transmission of electricity in Rio Grande do Norte. It serves 167 municipalities in Rio Grande do Norte covering 53 thousand kilometres concession area. The company was founded in 1961 and is headquartered in Natal, Brazil.

Companhia Energética do Rio Grande do Norte - COSERN Fundamentals Summary

How do Companhia Energética do Rio Grande do Norte - COSERN's earnings and revenue compare to its market cap?
CSRN3 fundamental statistics
Market Cap	R$3.69b
Earnings (TTM)	R$563.00m
Revenue (TTM)	R$3.74b

6.7x

P/E Ratio

1.0x

P/S Ratio

Is CSRN3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSRN3 income statement (TTM)
Revenue	R$3.74b
Cost of Revenue	R$2.99b
Gross Profit	R$746.00m
Other Expenses	R$183.00m
Earnings	R$563.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.35
Gross Margin	19.97%
Net Profit Margin	15.07%
Debt/Equity Ratio	129.7%

How did CSRN3 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

21%

Payout Ratio

Does CSRN3 pay a reliable dividends?

See CSRN3 dividend history and benchmarks

When do you need to buy CSRN3 by to receive an upcoming dividend?
Companhia Energética do Rio Grande do Norte - COSERN dividend dates
Ex Dividend Date	Jul 06 2022
Dividend Pay Date	Dec 31 2022
Days until Ex dividend	10 days
Days until Dividend pay date	188 days

Does CSRN3 pay a reliable dividends?

See CSRN3 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CSRN3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSRN3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CSRN3. This is calculated by dividing CSRN3's market cap by their current preferred multiple.
What is CSRN3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$3.69b

CSRN3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CSRN3's PE Ratio compare to its peers?

CSRN3 PE Ratio vs Peers

The above table shows the PE ratio for CSRN3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.1x

Forward PE

Price-To-Earnings vs Peers: CSRN3 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

How does CSRN3's PE Ratio compare vs other companies in the Brazilian Electric Utilities Industry?

Price-To-Earnings vs Industry: CSRN3 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the BR Electric Utilities industry average (7.1x)

Price to Earnings Ratio vs Fair Ratio

What is CSRN3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSRN3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CSRN3's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CSRN3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSRN3 (R$22.35) is trading above our estimate of fair value (R$9.66)

Significantly Below Fair Value: CSRN3 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CSRN3's PEG Ratio to determine if it is good value.

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Future Growth

How is Companhia Energética do Rio Grande do Norte - COSERN forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.4%

Forecasted Utilities industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Companhia Energética do Rio Grande do Norte - COSERN has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Companhia Energética do Rio Grande do Norte - COSERN's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Companhia Energética do Rio Grande do Norte - COSERN performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSRN3 has high quality earnings.

Growing Profit Margin: CSRN3's current net profit margins (15.1%) are higher than last year (12.8%).

Past Earnings Growth Analysis

Earnings Trend: CSRN3's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: CSRN3's earnings growth over the past year (50.9%) exceeds its 5-year average (23.3% per year).

Earnings vs Industry: CSRN3 earnings growth over the past year (50.9%) exceeded the Electric Utilities industry 26.2%.

Return on Equity

High ROE: Whilst CSRN3's Return on Equity (34.56%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Companhia Energética do Rio Grande do Norte - COSERN's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CSRN3's short term assets (R$1.6B) exceed its short term liabilities (R$1.5B).

Long Term Liabilities: CSRN3's short term assets (R$1.6B) do not cover its long term liabilities (R$2.2B).

Debt to Equity History and Analysis

Debt Level: CSRN3's net debt to equity ratio (113.3%) is considered high.

Reducing Debt: CSRN3's debt to equity ratio has increased from 128.1% to 129.7% over the past 5 years.

Debt Coverage: CSRN3's debt is well covered by operating cash flow (24.5%).

Interest Coverage: CSRN3's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

What is Companhia Energética do Rio Grande do Norte - COSERN current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.49%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CSRN3's dividend (2.49%) is higher than the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: CSRN3's dividend (2.49%) is low compared to the top 25% of dividend payers in the BR market (7.74%).

Stability and Growth of Payments

Stable Dividend: CSRN3's dividend payments have been volatile in the past 10 years.

Growing Dividend: CSRN3's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.3%), CSRN3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (114.3%), CSRN3's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure

CEO

Marcio Vasconcelos

2.42yrs

Tenure

Marcio Caires Vasconcelos serves as Chief Executive Officer and Member of Management Board at Companhia Energética do Rio Grande do Norte - COSERN since 2020.

Leadership Team

Experienced Management: CSRN3's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: CSRN3's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/06 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31