WallStSmart

Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR-B)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Centrais Elétricas Brasileiras S.A. - Eletrobrás generates 12% more annual revenue ($42.64B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs -14.1%. EBR-B trades at a lower P/E of 21.6x. SBS earns a higher WallStSmart Score of 77/100 (B+).

EBR-B

Avoid

31

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.3Quality: 5.0

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EBR-B.

SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBR-B2 strengths · Avg: 9.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.66B8/10

Generating 3.7B in free cash flow

SBS6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
87.2%10/10

Earnings expanding 87.2% YoY

Market CapQuality
$118.61B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

EBR-B4 concerns · Avg: 1.8/10
Return on EquityProfitability
-5.2%2/10

ROE of -5.2% — below average capital efficiency

Revenue GrowthGrowth
-9.4%2/10

Revenue declined 9.4%

EPS GrowthGrowth
-0.2%2/10

Earnings declined 0.2%

Profit MarginProfitability
-14.1%1/10

Currently unprofitable

SBS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.2x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-8.22B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : EBR-B

The strongest argument for EBR-B centers on Price/Book, Free Cash Flow.

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 22.2% and operating margin at 34.6%. Revenue growth of 43.9% demonstrates continued momentum.

Bear Case : EBR-B

The primary concerns for EBR-B are Return on Equity, Revenue Growth, EPS Growth.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Piotroski F-Score, P/E Ratio. A P/E of 67.2x leaves little room for execution misses.

Key Dynamics to Monitor

EBR-B profiles as a turnaround stock while SBS is a growth play — different risk/reward profiles.

EBR-B carries more volatility with a beta of 0.30 — expect wider price swings.

SBS is growing revenue faster at 43.9% — sustainability is the question.

EBR-B generates stronger free cash flow (3.7B), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 31/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Centrais Elétricas Brasileiras S.A. - Eletrobrás

UTILITIES · UTILITIES - RENEWABLE · USA

Centrais Eltricas Brasileiras SA - Eletrobras, is dedicated to the generation, transmission and distribution of electrical energy in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR

UTILITIES · UTILITIES - REGULATED WATER · USA

Companhia de Saneamento Basico do Estado de So Paulo - SABESP provides water and sewerage services to residential, commercial, industrial and government clients. The company is headquartered in So Paulo, Brazil.

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