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Engie Brasil Energia (EGIEY)
:EGIEY
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Engie Brasil Energia SA
(OTC:EGIEY)
Rating:69Neutral
Price Target:
$8.50
â–²(11.26%Upside)
Engie Brasil Energia SA (EGIEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.13B
Dividend Yield0.73%
Average Volume (3M)1.38K
Price to Earnings (P/E)10.2
Beta (1Y)0.38
Revenue Growth-2.15%
EPS Growth-30.01%
CountryUS
Employees1,247
SectorUtilities
Sector Strength78
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.16
Shares Outstanding815,928,000
10 Day Avg. Volume881
30 Day Avg. Volume1,377
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)2.84
Price to Sales (P/S)0.00
P/FCF Ratio-15.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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 based in Brazil that focuses on the generation and commercialization of electricity. It operates a diverse portfolio of power plants including hydroelectric, thermal, wind, and solar, making it one of the largest private sector energy producers in the country. The company is part of the global Engie Group, which is renowned for its expertise in low-carbon energy and services.
How the Company Makes MoneyEngie Brasil Energia SA generates revenue primarily through the production and sale of electricity. The company operates a wide array of power plants, leveraging various energy sources such as hydroelectric, thermal, wind, and solar, allowing it to sell electricity into the national grid and to large industrial consumers. Engie Brasil benefits from long-term power purchase agreements (PPAs) which provide stable cash flows and reduce market risk. Additionally, the company's strategic partnerships and investments in renewable energy infrastructure support its revenue growth while aligning with global trends towards sustainable energy solutions. Revenues are further bolstered by the company's involvement in energy trading activities and providing energy-related services across Brazil.
Engie Brasil Energia SA Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 11.86%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for Engie Brasil Energia, highlighting significant achievements in capacity growth, financial performance, and sustainability, while also facing challenges in power generation, curtailment, and debt management.Q1-2025 Updates
Positive Updates
Significant Increase in Installed Capacity
Engie Brasil Energia added over 900 megawatts of installed capacity, reaching approximately 11.6 gigawatts in total, including the acquisition of Santo Antônio do Jari and Cachoeira Caldeirão hydropower plants.
Improved Financial Performance
Adjusted EBITDA increased from 8.2% to 12.4%, with a 3.8% increase in adjusted net income.
Gender Diversity Advancement
The share of women in the company increased from 30% to 32%, and women in leadership positions increased from 34% to 38%.
Sustainability Recognition
Celebrated the 20th consecutive year as part of the Corporate Sustainability Index, ISE, achieving fourth place overall among 82 companies.
Innovative Financial Management
Engie Brasil executed a pioneering operation involving carbon credits to optimize its debt portfolio, a first in Brazil.
Negative Updates
Reduction in Gross Power Generation
Gross power generation decreased from 5.9 megawatts to 5.4 megawatts, primarily due to reduced hydropower plant contributions.
High Curtailment Levels
Curtailment reached 19%, attributed to critical events in the north of Brazil and transmission system limitations.
Decline in Solar Generation
Solar generation produced only BRL965 million, representing a 4% decrease in total generation.
Increased Debt and Leverage
Gross debt increased from BRL24.4 billion to BRL26.6 billion, with leverage rising to 3.5 times adjusted EBITDA.
Challenges with Green Hydrogen Projects
Development of green hydrogen projects was paused due to technological and financial feasibility challenges.
Company Guidance
Engie Brasil Energia provided comprehensive guidance during their Q1 2025 call, highlighting key financial and operational metrics. The company added over 900 MW to its portfolio, reaching almost 10 GW of installed capacity. They signed contracts to acquire Santo Antônio do Jari and Cachoeira Caldeirão hydropower plants, which will add 612 MW. Adjusted EBITDA increased by 12.4%, and net income rose by 3.8%. They declared BRL715 million in complementary dividends for 2024, with total profits distributed at BRL1.8 billion. The share of women in the workforce increased from 30% to 32%, while in leadership roles it decreased from 38% to 34%. Operationally, power generation decreased from 5.9 MW to 5.4 MW due to reduced hydropower output, but complementary sources doubled production. Curtailment increased to 19%, driven by critical events in the north. The company reached 1,800 clients and 980 consuming units, showing significant growth. Financially, net operational revenue grew 15%, with a notable contribution from transmission, and a balanced debt profile with a net debt of BRL20.6 billion. Capital expenditures for 2025 are projected at BRL7.1 billion, with investments in major projects like Asa Branca and Assurua. The presentation concluded with insights into the company's strategic direction and commitment to sustainability, including innovative financing through carbon credits.Engie Brasil Energia SA Financial Statement Overview
Summary
Engie Brasil Energia demonstrates strong profitability with healthy margins and an impressive ROE. However, high leverage and negative free cash flow pose significant risks, especially in a volatile market environment.Income Statement
Engie Brasil Energia SA shows a strong gross profit margin of 53.63% for TTM (Trailing-Twelve-Months), indicating efficient cost management. The net profit margin for the same period is 28.94%, reflecting substantial profitability. Revenue growth has been modest over the past year, with a 3.60% increase. However, the decline in net income from 2024 to TTM affects the overall performance. EBIT and EBITDA margins remain robust at 48.91% and 62.99%, respectively, though EBITDA has decreased compared to the previous year.76
Positive
Balance Sheet
The company's balance sheet is characterized by a high debt-to-equity ratio of 2.14, indicating significant leverage. Return on Equity (ROE) stands at 27.84% for TTM, which is impressive. The equity ratio is 22.90%, suggesting a balanced approach to financing through equity. However, the high leverage could pose risks in a changing interest rate environment.70
Positive
Cash Flow
The free cash flow has deteriorated significantly, moving from negative figures in the previous year to further negative in TTM. The operating cash flow to net income ratio of 1.23 is healthy, indicating good cash generation relative to profits. However, the free cash flow to net income ratio is negative, highlighting potential liquidity concerns.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.22B | 10.75B | 11.91B | 12.54B | 12.26B |
| Gross Profit | 6.11B | 5.91B | 5.59B | 5.91B | 5.43B |
| EBITDA | 8.56B | 6.86B | 6.21B | 7.00B | 5.79B |
| Net Income | 4.28B | 3.43B | 2.66B | 1.56B | 2.80B |
Balance Sheet | |||||
| Total Assets | 50.11B | 42.22B | 38.19B | 38.12B | 35.19B |
| Cash, Cash Equivalents and Short-Term Investments | 4.39B | 5.33B | 2.81B | 5.70B | 5.16B |
| Total Debt | 24.13B | 20.68B | 17.94B | 20.26B | 16.89B |
| Total Liabilities | 37.83B | 32.41B | 29.75B | 30.18B | 27.44B |
| Stockholders Equity | 11.27B | 8.86B | 8.44B | 7.93B | 7.74B |
Cash Flow | |||||
| Free Cash Flow | -2.49B | 2.02B | 1.76B | 748.88M | -6.77M |
| Operating Cash Flow | 4.15B | 4.59B | 3.34B | 1.99B | 1.34B |
| Investing Cash Flow | -5.91B | -2.04B | -1.78B | -339.05M | -996.94M |
| Financing Cash Flow | 459.25M | 476.35M | -4.47B | -1.03B | 323.37M |
Engie Brasil Energia SA Technical Analysis
Neutral
7.64
Price Trends
7.54
Negative
7.13
Positive
6.72
Positive
Market Momentum
-0.02
Positive
46.63
Neutral
75.03
Neutral
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 7.64 is below the 20-day moving average (MA) of 7.79, above the 50-day MA of 7.54, and above the 200-day MA of 6.72, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 75.03 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.02B | 25.39 | 8.37% | 2.78% | 10.10% | 149.78% | |
73 Outperform | $15.95B | 9.61 | 8.58% | 0.49% | 0.18% | 99.46% | |
69 Neutral | $6.13B | 10.21 | 28.14% | 0.73% | -2.15% | -30.01% | |
69 Neutral | $4.53B | 15.19 | 8.02% | 4.89% | 9.78% | -6.19% | |
67 Neutral | $16.91B | 17.00 | 4.48% | 3.26% | 4.72% | 5.95% | |
66 Neutral | $10.85B | 18.06 | 9.08% | 3.92% | 10.69% | 12.37% | |
56 Neutral | $4.68B | 24.96 | 3.67% | 1.84% | -12.73% | -74.65% |
* Utilities Sector Average
Performance Comparison
EGIEY
Engie Brasil Energia SA
7.51
>-0.01
-0.13%
EBR.B
Centrais Elc Braz Pfb B Elbras
7.37
0.34
4.84%
PNW
Pinnacle West Capital
88.69
6.90
8.44%
TXNM
TXNM Energy
56.85
16.83
42.05%
POR
Portland GE
40.95
-3.73
-8.35%
ENIC
Enel Chile SA
3.18
0.54
20.45%
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.