Engie Brasil Energia SA (EGIEY) AI Stock Analysis

• Market Cap: $4.83B
• Dividend Yield: 4.44%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.35
• Revenue Growth: 7.97%
• EPS Growth: -35.04%
• Country: US
• Employees: 1,247
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.10
• Shares Outstanding: 815,928,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.28
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 2.60
• P/FCF Ratio: -11.71
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 1.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): $2.05B

• Rating: 74 Outperform
• Price Target: $9.50 ▲(14.60% Upside)

Engie Brasil Energia SA's stock is supported by strong technical indicators and a reasonable valuation, despite financial challenges related to high leverage and cash flow constraints. The positive sentiment from the earnings call further bolsters the stock's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Engie's energy services and successful market penetration, supporting long-term business expansion.

Project Completion

Timely project completions enhance Engie's capacity and operational efficiency, strengthening its competitive position in the renewable energy sector.

Energy Trading Success

Growth in consumer base and units served reflects successful market strategies and enhances revenue potential, reinforcing Engie's market leadership.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting Engie's ability to invest in future growth opportunities.

Curtailment Issues

Ongoing curtailment challenges can hinder renewable energy output, affecting Engie's ability to fully capitalize on its green energy investments.

Increased Indebtedness

Rising indebtedness from acquisitions may pressure Engie's credit rating and limit its financial agility, impacting long-term strategic initiatives.

Engie Brasil Energia SA Business Overview & Revenue Model

Company Description

Engie 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 Money

Engie Brasil Energia generates revenue primarily through the sale of electricity generated from its diverse portfolio of power plants, which include hydroelectric, wind, and thermal facilities. The company sells electricity to both regulated and free market clients, allowing it to capitalize on various pricing mechanisms. Key revenue streams include long-term power purchase agreements (PPAs) with distribution companies and corporate clients, as well as spot market sales. Additionally, Engie Brasil benefits from government incentives for renewable energy projects, which can enhance profitability. The company's partnerships with local and international stakeholders in renewable energy projects also contribute to its financial growth, supporting its expansion and operational efficiency.

Engie Brasil Energia SA Financial Statement Overview

Summary

Engie Brasil Energia SA shows strong revenue growth and profitability with a 6.77% increase in revenue and healthy profit margins. However, high leverage with a debt-to-equity ratio of 2.39 and cash flow challenges, including a negative free cash flow growth rate, pose risks to financial stability.

Income Statement

Engie Brasil Energia SA shows strong revenue growth in the TTM with a 6.77% increase, indicating positive momentum. The company maintains healthy margins with a gross profit margin of 48.38% and a net profit margin of 23.87% in the TTM. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.39 in the TTM, indicating significant leverage which could pose financial risk. However, the return on equity remains robust at 25.31%, reflecting effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -100.18% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.40, suggesting moderate conversion of income to cash. The free cash flow to net income ratio is very low at 0.06%, highlighting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.71B	11.22B	10.75B	11.91B	12.54B	12.26B
Gross Profit	6.15B	6.11B	5.91B	5.59B	5.91B	5.43B
EBITDA	7.40B	8.56B	6.86B	6.21B	7.00B	5.79B
Net Income	3.03B	4.28B	3.43B	2.66B	1.56B	2.80B
Balance Sheet
Total Assets	56.54B	50.11B	42.22B	38.19B	38.12B	35.19B
Cash, Cash Equivalents and Short-Term Investments	4.64B	4.39B	5.33B	2.81B	5.70B	5.16B
Total Debt	29.39B	24.13B	20.68B	17.94B	20.26B	16.89B
Total Liabilities	43.08B	37.83B	32.41B	29.75B	30.18B	27.44B
Stockholders Equity	12.30B	11.27B	8.86B	8.44B	7.93B	7.74B
Cash Flow
Free Cash Flow	2.04M	-2.49B	2.02B	1.76B	748.88M	-6.77M
Operating Cash Flow	3.16B	4.15B	4.59B	3.34B	1.99B	1.34B
Investing Cash Flow	-5.28B	-5.91B	-2.04B	-1.78B	-339.05M	-996.94M
Financing Cash Flow	2.69B	459.25M	476.35M	-4.47B	-1.03B	323.37M

Engie Brasil Energia SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.29 is above the 20-day moving average (MA) of 7.99, above the 50-day MA of 7.70, and above the 200-day MA of 7.16, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPU	80 Outperform	$2.39B	9.67	13.07%	2.38%	-4.16%	-40.47%
EGIEY	74 Outperform	$4.83B	17.84	24.72%	4.44%	7.97%	-35.04%
EBR.B	74 Outperform	$24.41B	21.01	-5.50%	5.78%	1.52%	-159.17%
EBR	70 Outperform	―	―	-5.50%	5.72%	1.52%	-159.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TXNM	60 Neutral	$6.33B	33.98	6.02%	2.80%	10.65%	-10.67%
ENIC	56 Neutral	$5.30B	77.08	1.30%	5.88%	-25.78%	-91.93%

Engie Brasil Energia SA Corporate Events

Engie Brasil Energia Reports Strong Q3 2025 Growth

Engie Brasil Energia S.A., a prominent player in Brazil’s energy sector, specializes in electricity generation and distribution, with a focus on renewable energy sources such as wind and solar power.

Engie Brasil Energia’s Earnings Call: Progress Amid Challenges

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

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.