WallStSmart

Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR-B)vsStem Inc (STEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centrais Elétricas Brasileiras S.A. - Eletrobrás generates 27815% more annual revenue ($42.64B vs $152.75M). STEM leads profitability with a 94.2% profit margin vs -14.1%. STEM earns a higher WallStSmart Score of 42/100 (D).

EBR-B

Avoid

31

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.12

STEM

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: -4.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBR-BUndervalued (+10.6%)

Margin of Safety

+10.6%

Fair Value

$13.07

Current Price

$11.68

$1.39 discount

UndervaluedFair: $13.07Overvalued
STEMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$33.73

Current Price

$9.04

$24.69 discount

UndervaluedFair: $33.73Overvalued

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

STEM2 strengths · Avg: 10.0/10
Profit MarginProfitability
94.2%10/10

Keeps 94 of every $100 in revenue as profit

Debt/EquityHealth
-1.2410/10

Conservative balance sheet, low leverage

Areas to Watch

EBR-B4 concerns · Avg: 2.0/10
Return on EquityProfitability
-5.5%2/10

ROE of -5.5% — below average capital efficiency

Revenue GrowthGrowth
-9.4%2/10

Revenue declined 9.4%

EPS GrowthGrowth
-0.2%2/10

Earnings declined 0.2%

Altman Z-ScoreHealth
1.122/10

Distress zone — elevated risk

STEM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$68.97M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5921.0%2/10

ROE of -5921.0% — below average capital efficiency

Revenue GrowthGrowth
-10.8%2/10

Revenue declined 10.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : EBR-B

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

Bull Case : STEM

The strongest argument for STEM centers on Profit Margin, Debt/Equity. Profitability is solid with margins at 94.2% and operating margin at -37.5%.

Bear Case : EBR-B

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

Bear Case : STEM

The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

STEM carries more volatility with a beta of 1.44 — expect wider price swings.

EBR-B is growing revenue faster at -9.4% — sustainability is the question.

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

Bottom Line

STEM scores higher overall (42/100 vs 31/100), backed by strong 94.2% margins. Both earn "Hold" 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.

Stem Inc

UTILITIES · UTILITIES - RENEWABLE · USA

Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.

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