Centrais Elétricas EBITDA vs. Profit Margin

EBR-B Stock  USD 6.54  0.13  1.95%   
Based on Centrais Elétricas' profitability indicators, Centrais Eltricas Brasileiras is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Centrais Elétricas' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
11.8 B
Current Value
6.1 B
Quarterly Volatility
7.5 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Centrais Elétricas' Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 226.13, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.12. At present, Centrais Elétricas' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 340.3 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to about 6.3 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.680.4975
Significantly Up
Pretty Stable
For Centrais Elétricas profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Centrais Elétricas to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Centrais Eltricas Brasileiras utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Centrais Elétricas's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Centrais Eltricas Brasileiras over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Centrais Elétricas' value and its price as these two are different measures arrived at by different means. Investors typically determine if Centrais Elétricas is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Centrais Elétricas' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Centrais Elétricas Profit Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Centrais Elétricas's current stock value. Our valuation model uses many indicators to compare Centrais Elétricas value to that of its competitors to determine the firm's financial worth.
Centrais Eltricas Brasileiras is rated # 5 in ebitda category among its peers. It is rated # 3 in profit margin category among its peers . The ratio of EBITDA to Profit Margin for Centrais Eltricas Brasileiras is about  43,607,619,048 . At present, Centrais Elétricas' EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Centrais Elétricas' earnings, one of the primary drivers of an investment's value.

Centrais Profit Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Centrais Elétricas

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
11.81 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Centrais Elétricas

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.27 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Centrais Profit Margin Comparison

Centrais Eltricas is currently under evaluation in profit margin category among its peers.

Centrais Elétricas Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Centrais Elétricas, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Centrais Elétricas will eventually generate negative long term returns. The profitability progress is the general direction of Centrais Elétricas' change in net profit over the period of time. It can combine multiple indicators of Centrais Elétricas, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income6.6 B6.3 B
Operating Income11 B11.6 B
Income Before Tax1.7 B1.6 B
Total Other Income Expense Net-9.3 B-8.8 B
Net Income4.5 B2.4 B
Income Tax Expense-3 B-2.8 B
Net Income From Continuing Ops3.4 B2.8 B
Net Income Applicable To Common Shares4.2 B3.4 B
Net Interest Income-12.4 B-11.8 B
Interest Income400 M380 M
Change To Netincome324.1 M340.3 M
Net Income Per Share 2.00  2.10 
Income Quality 5.90  6.20 
Net Income Per E B T 2.63  2.76 

Centrais Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Centrais Elétricas. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Centrais Elétricas position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Centrais Elétricas' important profitability drivers and their relationship over time.

Use Centrais Elétricas in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Centrais Elétricas position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Centrais Elétricas will appreciate offsetting losses from the drop in the long position's value.

Centrais Elétricas Pair Trading

Centrais Eltricas Brasileiras Pair Trading Analysis

The ability to find closely correlated positions to Centrais Elétricas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Centrais Elétricas when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Centrais Elétricas - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Centrais Eltricas Brasileiras to buy it.
The correlation of Centrais Elétricas is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Centrais Elétricas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Centrais Elétricas moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Centrais Elétricas can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Centrais Elétricas position

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Other Information on Investing in Centrais Stock

To fully project Centrais Elétricas' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Centrais Elétricas at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Centrais Elétricas' income statement, its balance sheet, and the statement of cash flows.
Potential Centrais Elétricas investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Centrais Elétricas investors may work on each financial statement separately, they are all related. The changes in Centrais Elétricas's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Centrais Elétricas's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.