Centrais Electricas Brasileiras Stock Analysis, Valuation (NYSE:EBR)

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$4.16 $0.08 (1.89%) EBR stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls Centrais Electricas Brasileiras stock analysis video here. Our EBR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Centrais Eletricas Brasileiras SA (ADR) Stock Rating 2.4/5

Amigobulls EBR stock analysis takes into account various financial ratios like relative valuation, Centrais Electricas Brasileiras revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Centrais Electricas Brasileiras dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Centrais Electricas Brasileiras valuation analysis. Centrais Electricas Brasileiras stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy EBR stock?

  • Centrais Electricas Brasileiras has a lower debt burden than its peers in the Utilities sector, with a debt/equity ratio of 0.61.
  • EBR stock is trading at a favorable price to sales multiple of 0.6 as against the Utilities sector average multiple of 2.1.
  • Centrais Electricas Brasileiras has a healthy FCF (Free Cash Flow) margin of 6.8.

Should you sell EBR stock?

  • Sales declined by -10 annually over the last 5 years.
  • Centrais Electricas Brasileiras had a poor average operating margin of 1.92 over the last 4 quarters.
  • Centrais Electricas Brasileiras posted an average Net loss of -9.4% in the last twelve months.
  • The company does not have profits. Hence the PE ratio is meaningless for EBR stock.
  • Centrais Electricas Brasileiras has a negative ROE (Return On Equity) of -6.8, indicating the company is not profitable.

Comments on this video and Centrais Electricas Brasileiras stock

Investors can make use of the Amigobulls Centrais Electricas Brasileiras stock analysis to ascertain how EBR stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of EBR stock and helps investors in making good buy and sell decision.

Among the financials of the company, Centrais Electricas Brasileiras revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.