The next are in the present day’s upgrades for Validea’s Contrarian Investor mannequin primarily based on the revealed technique of David Dreman. This contrarian technique finds essentially the most unpopular mid- and large-cap shares available in the market and appears for enhancing fundamentals.
CENTRAIS ELETRICAS BRASILEIRAS SA – ADR (EBR) is a large-cap worth inventory within the Electrical Utilities trade. The score in line with our technique primarily based on David Dreman modified from 64% to 83% primarily based on the agency’s underlying fundamentals and the inventory’s valuation. A rating of 80% or above usually signifies that the technique has some curiosity within the inventory and a rating above 90% usually signifies robust curiosity.
Firm Description: Brazilian Electrical Energy Co is a Brazil-based vitality firm. It generates and transmits the electrical energy throughout Brazil by means of regional subsidiaries and quite a few Particular Objective Entities (SPE). Many of the Firm’s put in capability derives from low-carbon vitality sources: hydro, wind, photo voltaic and nuclear. The Firm’s actions will be divided into 4 operation areas: Vitality Technology, Vitality Transmission, Vitality Effectivity and Governmental Applications. Brazilian Electrical Energy Co manages three applications of the Brazilian authorities within the electrical vitality sector: the Nationwide Electrical Vitality Conservation Program, the Nationwide Program for Universalization of Entry and Use of Electrical Vitality and the Extra Gentle for the Amazon Program. The Firm has a number of subsidiaries, together with Companhia de Geracao e Transmissao de Energia Eletrica do Sul do Brasil Eletrobras CGT Eletrosul, Companhia Hidro Eletrica do Sao Francisco and Centrais Eletricas do Norte do Brasil SA Eletronorte.
The next desk summarizes whether or not the inventory meets every of this technique’s assessments. Not all standards within the beneath desk obtain equal weighting or are impartial, however the desk supplies a short overview of the robust and weak factors of the safety within the context of the technique’s standards.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | FAIL |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | FAIL |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Evaluation of CENTRAIS ELETRICAS BRASILEIRAS SA – ADR
About David Dreman: Dreman’s Kemper-Dreman Excessive Return Fund was one of many best-performing mutual funds ever, rating as the most effective of 255 funds in its peer teams from 1988 to 1998, in line with Lipper Analytical Companies. On the time Dreman revealed Contrarian Funding Methods: The Subsequent Technology, the fund had been ranked primary in additional time durations than any of the three,175 funds in Lipper’s database. Along with managing cash, Dreman can be a longtime Forbes journal columnist.
About Validea: Validea is aninvestment researchservice that follows the revealed methods of funding legends. Validea affords each inventory evaluation and mannequin portfolios primarily based on gurus who’ve outperformed the market over the long-term, together with Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For extra details about Validea, click here
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
