Companhia Paranaense de Energia (COPEL) American Depositary Shares (each representing four (4) Common Shares) (ELPC)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Generates $4.4 billion in annual free cash flow (43.4% yield on market cap)
• Solid return on equity of 11.0% above cost of capital
• Revenue growth of 19.4% demonstrates strong top-line momentum
• Attractive 3.9% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Companhia Paranaense de Energia (COPEL) American Depositary Shares (each representing four (4) Common Shares) is a mid-cap utilities company valued at $10.1 billion. The business generates $26.1 billion in annual revenue with a 4.1% net margin and $4.4 billion in free cash flow. From a quality standpoint, Companhia shows distressed Altman Z-Score of 0.5 warrants caution and adequate 11% ROE. On valuation, the stock is reasonably priced at 18.7x earnings, with trades above its Graham Number with a negative 21% margin. Growth dynamics show revenue growing at 19.4% and profit growth of 81.9%. The 3.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Companhia's 19% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. With $4.4 billion in annual free cash flow (43.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer