WallStSmart

Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR-B)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centrais Elétricas Brasileiras S.A. - Eletrobrás generates 1782% more annual revenue ($42.64B vs $2.27B). TAC leads profitability with a -1.0% profit margin vs -14.1%. TAC earns a higher WallStSmart Score of 43/100 (D).

EBR-B

Avoid

31

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.12

TAC

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBR-BUndervalued (+20.5%)

Margin of Safety

+20.5%

Fair Value

$14.69

Current Price

$11.68

$3.01 discount

UndervaluedFair: $14.69Overvalued

Intrinsic value data unavailable for TAC.

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

TAC1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.3%10/10

Strong operational efficiency at 33.3%

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

TAC4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-12.1%2/10

ROE of -12.1% — below average capital efficiency

EPS GrowthGrowth
-71.6%2/10

Earnings declined 71.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EBR-B

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

Bull Case : TAC

The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : EBR-B

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

Bear Case : TAC

The primary concerns for TAC are Piotroski F-Score, PEG Ratio, Return on Equity. Debt-to-equity of 2.38 is elevated, increasing financial risk.

Key Dynamics to Monitor

TAC carries more volatility with a beta of 0.46 — expect wider price swings.

TAC is growing revenue faster at 12.5% — sustainability is the question.

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

Monitor UTILITIES - RENEWABLE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TAC scores higher overall (43/100 vs 31/100) and 12.5% revenue growth. EBR-B offers better value entry with a 20.5% margin of safety. 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.

TransAlta Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.

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