Companhia Paranaense de Energia (ELPC)
Valuation Overview•Is Companhia Paranaense de Energia Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 46/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
ELPC demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (7.6% 3Y CAGR) paired with highly explosive earnings growth (29.7% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 19.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.9B | +13.0% | +7.6% | +6.6% | +5.5% | |
| EBITDA | $1.8B | — | +33.4% | — | — | |
| Net Income | $679.1M | -6.2% | +33.3% | — | +9.0% | |
| EPS (Diluted) | $3.72 | -17.6% | +29.7% | +26.3% | +21.2% | |
| Free Cash Flow | $15.6M | +385.9% | +78.6% | +23.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 25.5% | 21.9% | 63.0% | 43.9% |
| Operating Margin | 19.0% | 16.1% | 6.5% | 11.3% |
| Net Margin | 10.0% | 11.1% | 0.3% | 5.9% |
| FCF Margin | 1.3% | 1.1% | 0.0% | -0.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.19 | $0.16 | -15.8% | ||
| Q1'26 | $0.14 | $0.11 | -21.5% | ||
| Q4'25 | $0.13 | $0.11 | -14.1% | ||
| Q3'25 | $0.09 | $0.10 | +15.2% | ||
| Q2'25 | $0.10 | $0.15 | +48.1% | ||
| Q2'25 | — | $0.51 | — | ||
| Q1'25 | — | $0.90 | — | ||
| Q1'25 | $0.19 | $0.11 | -42.8% |
Total return is +36.6% (1Y), outperforming the benchmark by +11.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +35.9% | +26.6% | — |
| 1Y | +36.6% | +11.6% | +9.0% |
| 3YCAGR | +17.2% | -2.6% | +17.0% |
| 5YCAGR | +10.0% | -2.6% | +17.0% |
| 10YCAGR | +4.9% | -8.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Companhia Paranaense de Energia (ELPC) valuation, health, and returns.
Companhia Paranaense de Energia is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -157.7% downside from DCF intrinsic value of $-6.53)
Companhia Paranaense de Energia has multiple valuation anchors: DCF Intrinsic Value: $-6.53 | Peer Relative Fair Value: $150.22 | Wall Street Analyst Target: $10.40 (implying -8.1% upside). A convergence of these signals offers higher conviction.
Companhia Paranaense de Energia displays fair financial health with a composite quality score of 46/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.5%.
Companhia Paranaense de Energia pays a 22.8% dividend yield, covered by a 94% payout ratio with 1 years of growth, supplemented by a 0.6% buyback yield.
Companhia Paranaense de Energia's current growth trajectory is Accelerating. The company achieved +13.0% 1Y revenue growth and -17.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.6%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 40% of recent quarters with a -3-quarter streak. The consensus price target represents a -8.1% change from current levels.
Investment risks for Companhia Paranaense de Energia include: -18.8% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 1.02x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.