BME:XELTO

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Centrais Elétricas Brasileiras - Eletrobrás

Executive Summary

Centrais Elétricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Centrais Elétricas Brasileiras - Eletrobrás's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XELTO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.3%

XELTO

1.0%

ES Electric Utilities

-2.0%

ES Market


1 Year Return

-37.7%

XELTO

16.3%

ES Electric Utilities

-18.7%

ES Market

Return vs Industry: XELTO underperformed the Spanish Electric Utilities industry which returned 13.6% over the past year.

Return vs Market: XELTO underperformed the Spanish Market which returned -20.8% over the past year.


Shareholder returns

XELTOIndustryMarket
7 Day-6.3%1.0%-2.0%
30 Day9.2%2.9%-5.0%
90 Day51.8%20.3%3.4%
1 Year-34.8%-37.7%20.6%16.3%-16.1%-18.7%
3 Year65.8%54.5%61.5%43.1%-24.5%-31.4%
5 Year343.3%313.2%54.7%20.7%-22.2%-34.7%

Price Volatility Vs. Market

How volatile is Centrais Elétricas Brasileiras - Eletrobrás's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Centrais Elétricas Brasileiras - Eletrobrás undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XELTO (€5.95) is trading below our estimate of fair value (€24)

Significantly Below Fair Value: XELTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XELTO is good value based on its PE Ratio (8.9x) compared to the XE Electric Utilities industry average (11.8x).

PE vs Market: XELTO is good value based on its PE Ratio (8.9x) compared to the Spanish market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: XELTO is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: XELTO is good value based on its PB Ratio (0.9x) compared to the ES Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is Centrais Elétricas Brasileiras - Eletrobrás forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XELTO's forecast earnings growth (6.1% per year) is above the savings rate (1.3%).

Earnings vs Market: XELTO's earnings (6.1% per year) are forecast to grow slower than the Spanish market (30.2% per year).

High Growth Earnings: XELTO's earnings are forecast to grow, but not significantly.

Revenue vs Market: XELTO's revenue (1.5% per year) is forecast to grow slower than the Spanish market (5.7% per year).

High Growth Revenue: XELTO's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XELTO's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Centrais Elétricas Brasileiras - Eletrobrás performed over the past 5 years?

58.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XELTO has a large one-off loss of R$1.7B impacting its March 31 2020 financial results.

Growing Profit Margin: XELTO's current net profit margins (21.6%) are lower than last year (47.8%).


Past Earnings Growth Analysis

Earnings Trend: XELTO has become profitable over the past 5 years, growing earnings by 58.5% per year.

Accelerating Growth: XELTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: XELTO had negative earnings growth (-51.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (5.1%).


Return on Equity

High ROE: XELTO's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is Centrais Elétricas Brasileiras - Eletrobrás's financial position?


Financial Position Analysis

Short Term Liabilities: XELTO's short term assets (R$42.7B) exceed its short term liabilities (R$24.6B).

Long Term Liabilities: XELTO's short term assets (R$42.7B) do not cover its long term liabilities (R$82.5B).


Debt to Equity History and Analysis

Debt Level: XELTO's debt to equity ratio (71.4%) is considered high.

Reducing Debt: XELTO's debt to equity ratio has reduced from 77.4% to 71.4% over the past 5 years.

Debt Coverage: XELTO's debt is not well covered by operating cash flow (0.3%).

Interest Coverage: XELTO's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Centrais Elétricas Brasileiras - Eletrobrás's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: XELTO's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Spanish market (2.47%).

High Dividend: XELTO's dividend (4.55%) is low compared to the top 25% of dividend payers in the Spanish market (7.31%).


Stability and Growth of Payments

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

Growing Dividend: XELTO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), XELTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Wilson Ferreira Junior (61 yo)

4.08yrs

Tenure

Mr. Wilson Pinto Ferreira Junior has been Chief Executive Officer at Centrais Elétricas Brasileiras S.A. - Centrais Elétricas Brasileiras S.A. - Eletrobrás (formerly known as Eletrobras) since July 22, 201 ...


Leadership Team

NamePositionTenureCompensationOwnership
Wilson Ferreira Junior
CEO, Member of Board of Executive Officers & Director4.08yrsno datano data
Elvira Baracuhy Presta
CFO, Chief Investor Relations Officer & Member of Board of Executive Officers1.42yrsno datano data
Luiz Pereira de Andrade Figueira
Chief Administrative & Sustainability Officer and Member of Board of Executive Officersno datano datano data
Antonio Varejao Godoy
Chief Generation Officer & Member of Board of Executive Officersno datano datano data
Márcio Szechtman
Chief Transmission Officer & Member of Board of Executive Officersno datano datano data
Camila Gualdo Araújo
Director of Governance0.083yrno datano data
Pedro de Oliveira Jatobá
Chief Generation Officer0.83yrno datano data
Marcella Solomon
Secretary1.42yrsno datano data
Maurício de Mazzini
Legal Superintendentno datano datano data

1.4yrs

Average Tenure

Experienced Management: XELTO's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wilson Ferreira Junior
CEO, Member of Board of Executive Officers & Director4.08yrsno datano data
José Monforte
Chairman of the Board3.08yrsno datano data
Ruy Schneider
Directorno datano datano data
Patricia Stierli
Fiscal Council Chairwomanno datano datano data
Daniel Ferreira
Independent Director1.25yrsno datano data
Mauro Gentile da Cunha
Independent Director2.33yrsno datano data
Felipe Dias
Independent Directorno datano datano data
Bruno Eustáquio Castro de Carvalho
Directorno datano datano data
Ricardo Silva
Directorno datano datano data
Marcelo de Freitas
Directorno datano datano data
Luiz Eduardo dos Monteiro
Directorno datano datano data
Thaís Márcia Matano Lacerda
Member of Fiscal Councilno datano datano data

2.7yrs

Average Tenure

61yo

Average Age

Experienced Board: XELTO's board of directors are not considered experienced ( 2.7 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 been diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

Centrais Elétricas Brasileiras S.A. - Eletrobrás's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centrais Elétricas Brasileiras S.A. - Eletrobrás
  • Ticker: XELTO
  • Exchange: BME
  • Founded: 1962
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: R$58.380b
  • Listing Market Cap: R$9.341b
  • Shares outstanding: 1.57b
  • Website: https://www.eletrobras.com

Number of Employees


Location

  • Centrais Elétricas Brasileiras S.A. - Eletrobrás
  • Rua da Quitanda, 196
  • 9th Floor
  • Rio De Janeiro
  • Rio de Janeiro
  • 20091-005
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELET6BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred B SharesBRBRLJan 1992
XELTBBME (Bolsas y Mercados Espanoles)YesPreferred B SharesESEURJan 1992
L3XADB (Deutsche Boerse AG)YesPreferred B SharesDEEURJan 1992
ELET3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLJun 1993
XELTOBME (Bolsas y Mercados Espanoles)Common SharesESEURJun 1993
L3XDB (Deutsche Boerse AG)Common SharesDEEURJun 1993
ELET5BOVESPA (Bolsa de Valores de Sao Paulo)Preferred A SharesBRBRLFeb 1994
EBRNYSE (New York Stock Exchange)ADR-EACH REPR 1 COM SHS NPVUSUSDJan 1995
L3XBDB (Deutsche Boerse AG)ADR-EACH REPR 1 COM SHS NPVDEEURJan 1995
EBR.BNYSE (New York Stock Exchange)ADR-EACH REPR 1 PRF'B'SHS NPVUSUSDJun 2003
L3XCDB (Deutsche Boerse AG)ADR-EACH REPR 1 PRF'B'SHS NPVDEEURJun 2003

Biography

Centrais Elétricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through hyd ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 22:14
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.