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Companhia Paranaense de Energia – COPEL (NYSE:ELP): An Opportunity for Fundamental Investors?

Companhia Paranaense de Energia – COPEL (NYSE:ELP) previous close was $5.54 while the outstanding shares total 547.31M. The firm has a beta of 0.56, a 12-month trailing P/E ratio of 19.93, and a growth ratio of 3.21. ELP’s shares traded higher over the last trading session, gaining 0.72% on 05/20/21. The shares fell to a low of $5.52 before closing at $5.58. Intraday shares traded counted 0.41 million, which was 84.19% higher than its 30-day average trading volume of 2.59M. The stock’s Relative Strength Index (RSI) is 52.40, with weekly volatility at 1.87% and ATR at 0.21. The ELP stock’s 52-week price range has touched low of $4.72 and a $7.12 high.

Investors have identified the Utilities – Diversified company Companhia Paranaense de Energia – COPEL as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.97 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Companhia Paranaense de Energia – COPEL (ELP) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ELP, the company has in raw cash 535.12 million on their books with 323.82 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.09 billion total, with 1.87 billion as their total liabilities.

ELP were able to record 24.3 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by -54.65 million. In cash movements, the company had a total of 95.84 million as operating cash flow.

Potential earnings growth for Companhia Paranaense de Energia – COPEL (ELP)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Companhia Paranaense de Energia – COPEL recorded a total of 912.4 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.85% coming in sequential stages and their sales for the 08/11/2021 quarter reducing by -9.63%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 720.94 million trying to sell their products during the last quarter, with the result yielding a gross income of 191.46 million. This allows shareholders to hold on to 547.31M with the recently reported earning now reading 0.51 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.48 cents a share).

Is the stock of ELP attractive?

In the last 6 months, insiders have changed their ownership in shares of company stock by 55.60%.

3 out of 8 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Companhia Paranaense de Energia – COPEL. 0 analysts has assigned a Sell rating on the ELP stock. The 12-month mean consensus price target for the company’s shares has been set at $1.46.

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