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Engie Brasil Energia (EGIEY)
:EGIEY
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Engie Brasil Energia SA
(OTC:EGIEY)
Rating:68Neutral
Price Target:
$8.00
â–²(5.82% Upside)
Positive Factors
Renewable Energy Expansion
Completion of major renewable projects enhances Engie's capacity and positions it well in the growing clean energy market, supporting long-term growth.
Client Base Growth
A growing client base indicates strong demand for Engie's services, which can lead to increased revenue stability and market share over time.
Improved ESG Performance
Strong ESG performance aligns with global sustainability trends, potentially attracting more environmentally conscious investors and clients.
Negative Factors
Net Profit Decline
Declining net profit due to external economic factors can strain financial resources, impacting Engie's ability to invest in future growth.
Curtailment Challenges
Curtailment issues reduce operational efficiency and revenue potential, posing a risk to the profitability of renewable energy projects.
Regulatory Environment Challenges
Regulatory hurdles can delay project timelines and increase costs, affecting Engie's strategic planning and operational execution.
Engie Brasil Energia SA (EGIEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.16B
Dividend Yield4.86%
Average Volume (3M)5.51K
Price to Earnings (P/E)11.8
Beta (1Y)0.39
Revenue Growth-2.29%
EPS Growth-40.22%
CountryUS
Employees1,247
SectorUtilities
Sector Strength63
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.13
Shares Outstanding815,928,000
10 Day Avg. Volume1,955
30 Day Avg. Volume5,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda1.52
Forecast
1Y Price Target
$8.00Price Target Upside5.82% Upside
Rating ConsensusHold
Number of Analyst Covering1
Engie Brasil Energia SA Business Overview & Revenue Model
Company DescriptionEngie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 68 plants, including 11 hydroelectric power plants; 4 thermal power plants; 49 wind-powered plants; 3 biomass; 2 photovoltaic solar power plant; 1 conventional thermoelectric plant; and 2 small hydroelectric plants in the 21 states of Brazil. As of December 31, 2021, it had an installed capacity of 8,218.7 megawatts. The company also transports natural gas through 4,500 km of gas pipelines in the Southeast, Northeast, and North regions of Brazil. In addition, it engages in manufacture, wholesale, retail sale, operation, and maintenance of solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was incorporated in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
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
Positive
7.56
Price Trends
7.34
Positive
7.25
Positive
6.66
Positive
Market Momentum
0.06
Negative
61.67
Neutral
99.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGIEY, the sentiment is Positive. The current price of 7.56 is above the 20-day moving average (MA) of 7.28, above the 50-day MA of 7.34, and above the 200-day MA of 6.66, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 99.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGIEY.
Engie Brasil Energia SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $20.08B | 17.13 | 6.01% | 7.42% | 6.41% | 37.23% | |
77 Outperform | $20.08B | 16.33 | 6.01% | 7.20% | 6.41% | 37.23% | |
70 Neutral | $1.32B | 7.72 | 9.38% | 4.13% | -9.20% | -53.99% | |
69 Neutral | $5.99B | 29.27 | 6.36% | 2.83% | 10.23% | 114.67% | |
68 Neutral | $6.16B | 11.78 | 24.67% | 4.86% | -2.29% | -40.22% | |
66 Neutral | $17.58B | 18.09 | 5.60% | 3.63% | 6.62% | 11.55% | |
61 Neutral | $5.19B | 36.43 | 2.89% | 5.94% | -19.56% | -83.31% |
* Utilities Sector Average
Performance Comparison
EGIEY
Engie Brasil Energia SA
7.56
-0.12
-1.56%
EBR.B
Centrais Elc Braz Pfb B Elbras
9.09
1.45
18.98%
TXNM
TXNM Energy
56.86
15.21
36.52%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
8.67
1.61
22.80%
ENIC
Enel Chile SA
3.76
1.20
46.87%
CEPU
Central Puerto SA
8.56
-1.64
-16.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.