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Are Centrais Eletricas Brasileiras S.A. (NYSE:EBR)’s Fundamentals Enough to Outperform

Centrais Eletricas Brasileiras S.A. (NYSE:EBR) has a 12-month trailing P/E ratio of 12.02. The stock’s Relative Strength Index (RSI) is 63.94, with weekly volatility at 4.42% and ATR at 0.37. The EBR stock’s 52-week price range has touched low of $4.69 and a $9.29 high. Its shares traded higher over the last trading session, gaining 4.17% on 06/18/21. The shares fell to a low of $9.00 before closing at $9.00. Intraday shares traded counted 3.96 million, which was -277.31% lower than its 30-day average trading volume of 1.05M. EBR’s previous close was $8.64 while the outstanding shares total 1.57B.

Investors have identified the Utilities – Regulated Electric company Centrais Eletricas Brasileiras S.A. 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 $14.12 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.

Centrais Eletricas Brasileiras S.A. (EBR) 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 EBR, the company has in raw cash 745.89 million on their books with 1.95 billion 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 8.01 billion total, with 4.48 billion as their total liabilities.

EBR were able to record 521.96 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by 0.98 million. In cash movements, the company had a total of 573.07 million as operating cash flow.

Potential earnings growth for Centrais Eletricas Brasileiras S.A. (EBR)

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, Centrais Eletricas Brasileiras S.A. recorded a total of 1.5 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.6% coming in sequential stages and their sales for the 08/11/2021 quarter increasing by 58.88%.

Is the stock of EBR attractive?

7 out of 9 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Centrais Eletricas Brasileiras S.A.. 0 analysts has assigned a Sell rating on the EBR stock. The 12-month mean consensus price target for the company’s shares has been set at $9.20.

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