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Transmissora Aliança de Energia Elétrica (BOVESPA:TAEE11)

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Transmissora Aliança de Energia Elétrica stock research in summary

taesa.com.br

ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Transmissora Aliança de Energia Elétrica (Electric Utilities, Brazil) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Transmissora Aliança de Energia Elétrica are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 18) but are safely financed (Safety Rank of 62), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Transmissora Aliança de Energia Elétrica's financial characteristics. As the company Transmissora Aliança de Energia Elétrica's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 18), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 62) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	45
Growth Rank	18
Safety Rank	62
Combined Rank	37

Country	Brazil
Industry	Electric Utilities
Index	BOVESPA
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: Transmissora Aliança de Energia Elétrica

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	76	56	63	45
GROWTH
GROWTH	98	17	25	18
SAFETY
SAFETY	79	59	67	62
SENTIMENT
SENTIMENT	n/a	21	47	^new
360° VIEW
360° VIEW	n/a	16	45	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Transmissora Aliança de Energia Elétrica is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	76	56	63	45
GROWTH
GROWTH	98	17	25	18
SAFETY
SAFETY	79	59	67	62
COMBINED
COMBINED	97	36	53	37

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Transmissora Aliança de Energia Elétrica the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Transmissora Aliança de Energia Elétrica shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Transmissora Aliança de Energia Elétrica. Price-to-Profit (also referred to as price-earnings, P/E) is 73 which means that the stock price compared with what market professionals expect for future profits is lower than for 73% of comparable companies, indicating a good value concerning Transmissora Aliança de Energia Elétrica's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 1, which means that the stock price is lower as regards to invested capital than for 1% of comparable investments. On the other hand, Price-to-Sales is less favorable than 89% of alternatives (only 11% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 4% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Transmissora Aliança de Energia Elétrica's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	24	13	16	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	90	70	70	73
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	46	41	49	1
DIVIDEND YIELD
DIVIDEND YIELD	98	88	98	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	76	56	63	45

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Transmissora Aliança de Energia Elétrica; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 18 (better than 18% compared with alternatives), Transmissora Aliança de Energia Elétrica shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Transmissora Aliança de Energia Elétrica. Sales Growth has a rank of 40, which means that currently professionals expect the company to grow less than 60% of its competitors. The same is valid for Profit Growth, with a rank of 47, and Capital Growth with 16. In addition, Stock Returns have a below market rank of 34, which means that the stock returns have recently been below 66% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 18, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. 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 low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	90	64	79	40
PROFIT GROWTH
PROFIT GROWTH	1	4	18	47
CAPITAL GROWTH
CAPITAL GROWTH	n/a	7	7	16
STOCK RETURNS
STOCK RETURNS	75	71	47	34
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	98	17	25	18

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Transmissora Aliança de Energia Elétrica.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Transmissora Aliança de Energia Elétrica 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 Transmissora Aliança de Energia Elétrica 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, with just one indicator above average for Transmissora Aliança de Energia Elétrica and the other two below average. Refinancing is at 92, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 92% of its competitors. But Leverage is high with a rank of 29, meaning the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. Liquidity is also on the riskier side with a rank of 46, meaning the company generates less profit to service its debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Transmissora Aliança de Energia Elétrica has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Transmissora Aliança de Energia Elétrica are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Transmissora Aliança de Energia Elétrica and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	55	38	36	29
REFINANCING
REFINANCING	81	55	100	92
LIQUIDITY
LIQUIDITY	63	73	51	46
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	79	59	67	62

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Transmissora Aliança de Energia Elétrica and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	7	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	45	65	^new
MARKET PULSE
MARKET PULSE	n/a	71	54	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	21	47	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Transmissora Aliança de Energia Elétrica.
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