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Engie Brasil Energia (EGIEY)
:EGIEY
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Engie Brasil Energia SA
(OTC:EGIEY)
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Rating:67Neutral
Price Target:
$8.00
▲(9.59% Upside)
Engie Brasil Energia SA's overall score is driven by strong profitability and attractive valuation, despite challenges in cash flow and regulatory hurdles. The company's strategic focus on renewable energy projects and client growth are positive, but high leverage and operational challenges need addressing.
Engie Brasil Energia SA (EGIEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.03B
Dividend Yield4.97%
Average Volume (3M)547.00
Price to Earnings (P/E)11.6
Beta (1Y)0.42
Revenue Growth-2.29%
EPS Growth-40.22%
CountryUS
Employees1,247
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.12
Shares Outstanding815,928,000
10 Day Avg. Volume0
30 Day Avg. Volume547
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)2.59
Price to Sales (P/S)2.60
P/FCF Ratio-11.71
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda1.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Engie Brasil Energia SA Business Overview & Revenue Model
Company DescriptionEngie Brasil Energia SA (EGIEY) is a leading energy company in Brazil, specializing in the production and commercialization of electricity. The company operates across various sectors including renewable energy sources such as hydroelectric, wind, and solar power, as well as thermal generation. Engie Brasil is committed to sustainable development and aims to provide efficient and clean energy solutions to meet the growing demands of the Brazilian market.
How the Company Makes MoneyEngie Brasil Energia SA generates revenue primarily through the sale of electricity produced from its diverse portfolio of power generation assets. The company earns money from long-term power purchase agreements (PPAs) with both regulated and free market clients, which provide stable cash flows. Additionally, Engie Brasil benefits from selling energy in the spot market, where prices can be higher based on demand fluctuations. The company also engages in ancillary services and grid management, contributing to its revenue. Significant partnerships with local and international entities enhance its operational capabilities and market reach, further supporting its revenue streams.
Engie Brasil Energia SA Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
While ENGIE Brasil demonstrated strong progress in expanding its renewable energy projects and had significant client base growth, the earnings call highlighted substantial challenges, including a decline in net profit, regulatory hurdles, and curtailment issues affecting generation. These challenges offset some of the positive developments.Q2-2025 Updates
Positive Updates
Expansion of Renewable Energy Projects
The Serra do Assuruá Wind Complex reached 100% physical progress with 88% commercially operating. A photovoltaic complex achieved 96% fiscal progress with 24% of the plants under commercial operation. These projects are expected to be fully operational by the end of the third quarter.
Significant Debenture Issuance
ENGIE Brasil concluded its 15th debenture issuance totaling BRL 2.2 billion, classified as a green debenture, showing strong capital acquisition capabilities.
Transmission Project Progress
The Asa Branca project is on track, with the first area representing 1/3 of the IP set to start operating early this year. The Grauna project is also progressing, with important synergies identified.
Client Base Growth
The company experienced an increase of almost 22% in the number of clients and a 15% increase in consuming units compared to the second quarter of '24.
Improved ESG Performance
ENGIE Brasil maintained low emissions intensity, significantly below NIS reference, and improved safety and diversity indicators.
Negative Updates
Net Profit Decline
The company experienced a decrease in net profit due to high interest rates and a lag between investment and return, affecting financial results.
Curtailment Challenges
Curtailment impacted generation significantly, with a 14% impact on wind and solar generation. This challenge is exacerbated by regulatory delays and is a major issue in the sector.
Hydroelectric Generation Decrease
There was a decrease in hydroelectric generation due to seasonality, affecting the company's results.
Challenges with Regulatory Environment
The company faces a challenging regulatory environment in Brazil’s electric sector, which affects project timelines and operational strategies.
Company Guidance
During the call, ENGIE Brasil Energia provided comprehensive guidance on various metrics, highlighting their ongoing projects and financial strategies. The Serra do Assuruá Wind Complex is at 100% physical progress, with 88% commercially operating and 12% under test. Additionally, their photovoltaic complex has achieved 96% physical progress, with 24% of the plants under commercial operation and 63% under test, aiming for full operational status by the end of the third quarter. Financially, they concluded a BRL 2.2 billion debenture issue, classified as green, and distributed an interim dividend of BRL 719.2 million. The company reported a 10% increase in operating revenue for the quarter, driven by new assets and transmission projects, though their net income decreased due to high interest rates and investment lags. They also emphasized their ESG metrics, noting that their emissions intensity is 10 times lower than the NIS reference, and highlighted improvements in safety and diversity indicators. Looking forward, ENGIE plans to maintain a strategic focus on renewable energy projects and further investments in transmission, with the aim of balancing their asset portfolio while managing leverage prudently.Engie Brasil Energia SA Financial Statement Overview
Summary
Engie Brasil Energia SA demonstrates strong profitability and revenue growth, but faces challenges with high leverage and negative free cash flow growth. The company maintains a solid return on equity, yet needs to address cash flow issues to ensure long-term financial stability.Income Statement
Engie Brasil Energia SA shows a stable revenue growth rate of 2.45% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 53.62%, and the net profit margin is healthy at 28.94%. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 2.14, which indicates significant leverage. However, the return on equity remains robust at 29.76%, reflecting efficient use of equity. The equity ratio is moderate, suggesting a balanced asset structure.70
Positive
Cash Flow
The free cash flow growth rate is negative at -49.25%, indicating challenges in generating free cash flow. The operating cash flow to net income ratio is below 1, at 0.60, suggesting that not all net income is being converted into cash. The negative free cash flow to net income ratio highlights potential liquidity concerns.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.91B | 11.22B | 10.75B | 11.91B | 12.54B | 12.26B |
| Gross Profit | 5.97B | 6.11B | 5.91B | 5.59B | 5.91B | 5.43B |
| EBITDA | 7.26B | 8.56B | 6.86B | 6.21B | 7.00B | 5.79B |
| Net Income | 3.01B | 4.28B | 3.43B | 2.66B | 1.56B | 2.80B |
Balance Sheet | ||||||
| Total Assets | 53.31B | 50.11B | 42.22B | 38.19B | 38.12B | 35.19B |
| Cash, Cash Equivalents and Short-Term Investments | 6.12B | 4.39B | 5.33B | 2.81B | 5.70B | 5.16B |
| Total Debt | 27.09B | 24.13B | 20.68B | 17.94B | 20.26B | 16.89B |
| Total Liabilities | 39.90B | 37.83B | 32.41B | 29.75B | 30.18B | 27.44B |
| Stockholders Equity | 12.31B | 11.27B | 8.86B | 8.44B | 7.93B | 7.74B |
Cash Flow | ||||||
| Free Cash Flow | -1.11B | -2.49B | 2.02B | 1.76B | 748.88M | -6.77M |
| Operating Cash Flow | 3.60B | 4.15B | 4.59B | 3.34B | 1.99B | 1.34B |
| Investing Cash Flow | -4.51B | -5.91B | -2.04B | -1.78B | -339.05M | -996.94M |
| Financing Cash Flow | 2.35B | 459.25M | 476.35M | -4.47B | -1.03B | 323.37M |
Engie Brasil Energia SA Technical Analysis
Neutral
7.30
Price Trends
7.45
Negative
7.43
Negative
6.96
Positive
Market Momentum
-0.03
Negative
48.72
Neutral
84.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGIEY, the sentiment is Neutral. The current price of 7.3 is below the 20-day moving average (MA) of 7.41, below the 50-day MA of 7.45, and above the 200-day MA of 6.96, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 84.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EGIEY.
Engie Brasil Energia SA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $24.00B | 20.63 | 6.01% | 6.11% | 6.41% | 37.23% | |
| ― | $2.25B | 12.20 | 9.38% | 2.48% | -9.20% | -53.99% | |
| ― | $24.00B | 19.37 | 6.01% | 6.04% | 6.41% | 37.23% | |
| ― | $5.99B | 29.24 | 6.36% | 2.87% | 10.23% | 114.67% | |
| ― | $6.03B | 11.62 | 24.67% | 4.97% | -2.29% | -40.22% | |
| ― | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
| ― | $5.28B | 36.82 | 2.89% | 5.88% | -19.56% | -83.31% |
* Utilities Sector Average
EGIEY
Engie Brasil Energia SA
7.41
0.67
9.94%
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38.55%
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Centrais Eletricas Brasileiras SA - Eletrobras
10.34
4.54
78.28%
ENIC
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3.87
1.29
50.00%
CEPU
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14.22
3.30
30.22%
Engie Brasil Energia SA Corporate Events
Engie Brasil Energia’s Earnings Call: Progress Amid Challenges
Aug 13, 2025
The recent earnings call for Engie Brasil Energia showcased a mixed sentiment, highlighting both significant achievements and notable challenges. The company demonstrated strong progress in renewable projects, capital acquisition, and client base growth. However, the overall sentiment was tempered by challenges such as decreased net profit, regulatory hurdles, and energy curtailment. While the highlights show promising advancements, the lowlights reflect significant obstacles that need to be addressed.
ENGIE Brasil Energia Reports Q2 2025 Earnings and Strategic Progress
Aug 9, 2025
ENGIE Brasil Energia S.A., a leading energy company in Brazil, operates in the electricity generation and natural gas transportation sectors, focusing on sustainable energy solutions and infrastructure development.
Glossary
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.