Eletrobras: Low Beta, High-Yield And Easy Pick

Company Overview - Eletrobras is the largest utilities stock in Latin America and has shown exceptional performance post-privatization in 2022, reducing its net debt to 1.5x EBITDA for 2024 while achieving an 18% growth [1] Investment Analysis Approach - The analysis follows a triangulation approach involving valuation by multiples, discounted cash flow (DCF), and Dividend Yield, focusing on operational fundamentals, execution history, and sustainable growth drivers [1] - The investment philosophy combines income and value investing strategies, emphasizing the importance of a margin of safety in multiples and projected cash flow [1] Sector Focus - The focus is on the Consumer Discretionary and Consumer Staples sectors, prioritizing companies with smaller capitalization and low institutional coverage, which present greater potential for asymmetries and alpha generation [1] Dividend Yield Importance - Dividend yield is considered a fundamental component for generating returns and as a risk mitigation criterion, especially in low coverage stocks [1] Additional Strategies - Suggestions involving options may be included when they align with the main thesis and offer an asymmetric advantage [1]