Ampla Energia e Serviços S.A. engages in the distribution of electricity in the states of Rio de Janeiro in Brazil. The company was formerly known as Companhia de Eletricidade do Rio de Janeiro. Ampla Energia e Serviços S.A. was founded in 1908 and is headquartered in Niteroi, Brazil. Ampla Energia e Serviços S.A. is a subsidiary of Enel Brasil S.A.

Brazil

Ampla Energia e Serviços S.A.

Utilities

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been strong and significantly above its peers. At the same time, the average five-year yield has been significantly lower, at very close to zero. 

CBEE3.SA reported revenue of BRL 8 409mn in the last 12 months, up 1% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 1% from FY24 to BRL 1.74.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 8ppts over six months and grown 17ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 19.9% in the last 12 months, up from 16.5% in FY23. 

Historically, CBEE3.SA has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 8.2%, a growth from -2.5% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 3.7% in the last 12 months, an increase from -1.1% in FY23. 

Ampla Energia e Serviços S.A. reported a return on equity (RoE) of 10.0% in the last 12 months, up from -3.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 6.0%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.0 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

CBEE3.SA has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, poor working capital management, and inadequate interest coverage.

In highly turbulent market conditions, CBEE3.SA is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, CBEE3.SA is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to substantial. We would also like to highlight the average intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

Log in

Ampla Energia e Serviços S.A.

R$ 10.01

4

Ampla Energia e Serviços S.A.

R$ 10.01

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

R$ 10.01

About

About

About

About