Centrais Eletricas Brasileiras (NYSE: EBR.B) shares currently have a dividend yield of 17.00%. Centrais Eletricas Brasileiras S.A. Eletrobras, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company has a P/E ratio of 1.57. The average volume for Centrais Eletricas Brasileiras has been 324,200 shares per day over the past 30 days. Centrais Eletricas Brasileiras has a market cap of $5.5 billion and is part of the utilities industry. Shares are down 16.8% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Centrais Eletricas Brasileiras as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and poor profit margins. Highlights from the ratings report include:
- EBR.B's very impressive revenue growth greatly exceeded the industry average of 13.0%. Since the same quarter one year prior, revenues leaped by 65.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future problems.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 64.03%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 31.37% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Electric Utilities industry. The net income has significantly decreased by 29.5% when compared to the same quarter one year ago, falling from $684.73 million to $482.78 million.
- You can view the full Centrais Eletricas Brasileiras Ratings Report.
- Our dividend calendar.
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