Fact based stock research
Brazilian Electric (BOVESPA:ELET6)
BRELETACNPB7
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Brazilian Electric stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Brazilian Electric (Electric Utilities, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of Brazilian Electric are a good value (attractively priced) with a consolidated Value Rank of 68 (better than 68% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 34). ...read more
RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Brazilian Electric's financial characteristics. As the company Brazilian Electric's key financial metrics exhibit good value (Obermatt Value Rank of 68) but low growth (Obermatt Growth Rank of 34) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 68% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Brazil |
| Industry | Electric Utilities |
| Index | BOVESPA, BOVESPA, Low Emissions, Energy Efficient, Human Rights, Independent Boards Growth Markets, Nuclear |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Brazilian Electric
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
84 |
|
67 |
|
68 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
41 |
|
61 |
|
34 |
|
| SAFETY | ||||||||
| SAFETY | 81 |
|
65 |
|
51 |
|
66 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
43 |
|
22 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
78 |
|
39 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Brazilian Electric (Electric Utilities, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of Brazilian Electric are a good value (attractively priced) with a consolidated Value Rank of 68 (better than 68% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 34). ...read more
RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Brazilian Electric's financial characteristics. As the company Brazilian Electric's key financial metrics exhibit good value (Obermatt Value Rank of 68) but low growth (Obermatt Growth Rank of 34) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 68% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
84 |
|
67 |
|
68 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
41 |
|
61 |
|
34 |
|
| SAFETY | ||||||||
| SAFETY | 81 |
|
65 |
|
51 |
|
66 |
|
| COMBINED | ||||||||
| COMBINED | 58 |
|
84 |
|
74 |
|
64 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 68 (better than 68% compared with alternatives), Brazilian Electric shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Brazilian Electric. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 93 which means that the stock price compared with what market professionals expect for future profits is lower than for 93% of comparable companies, indicating a good value concerning Brazilian Electric's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 93, and for Dividend Yield with a Dividend Yield Rank of 60. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 73% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 27). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 68, is a buy recommendation based on Brazilian Electric's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Brazilian Electric has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Brazilian Electric shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 51 |
|
62 |
|
29 |
|
27 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 62 |
|
100 |
|
72 |
|
93 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 92 |
|
90 |
|
86 |
|
93 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 44 |
|
45 |
|
63 |
|
60 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 72 |
|
84 |
|
67 |
|
68 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 34 (better than 34% compared with alternatives), Brazilian Electric shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Brazilian Electric. While Profit Growth has a good rank of 88, as professionals currently expect the company to grow its profits more than 88% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 10, which means that currently professionals expect the company to grow less than 90% of its competitors, while Capital Growth has a rank of 46 and Stock Returns have been below market median, with a rank of 24 (76% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 34, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 62 |
|
12 |
|
65 |
|
10 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 10 |
|
58 |
|
66 |
|
88 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
59 |
|
42 |
|
46 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 44 |
|
47 |
|
35 |
|
24 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 88 |
|
41 |
|
61 |
|
34 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company Brazilian Electric has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Brazilian Electric is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Brazilian Electric.Leverage is at 73, meaning the company has a below-average debt-to-equity ratio. It has less debt than 73% of its competitors.Refinancing is at a rank of 76, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 76% of its competitors. Liquidity is at 26, meaning that the company generates less profit to service its debt than 74% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), Brazilian Electric has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Brazilian Electric more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 40 |
|
62 |
|
66 |
|
73 |
|
| REFINANCING | ||||||||
| REFINANCING | 96 |
|
89 |
|
75 |
|
76 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 76 |
|
31 |
|
23 |
|
26 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 81 |
|
65 |
|
51 |
|
66 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
75 |
|
81 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
26 |
|
21 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
59 |
|
29 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
40 |
|
23 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
43 |
|
22 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Brazilian Electric from December 19, 2024.
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