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Engie Brasil Energia SA (EGIEY)
OTHER OTC:EGIEY
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Engie Brasil Energia SA
(OTC:EGIEY)
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Rating:67Neutral
Price Target:
$7.00
â–²(20.07% Upside)
Action:ReiteratedDate:12/05/25
Engie Brasil Energia SA's overall stock score is driven by strong financial performance and a positive earnings call outlook, despite challenges with high leverage and cash flow constraints. The stock's reasonable valuation and attractive dividend yield further support its investment appeal. Technical indicators suggest a stable trend, though some caution is warranted due to potential bearish momentum.
Positive Factors
Diversified renewable portfolio
A diversified fleet across hydro, wind and solar reduces single-source exposure and supports steadier generation mix over time. Coupled with Engie Group affiliation and policy tailwinds for renewables in Brazil, this underpins resilient long-term revenue and strategic positioning.
Strong margins and revenue growth
Sustained revenue growth alongside healthy gross and net margins indicates durable operating economics. High margins provide a buffer against commodity and price volatility, supporting long-term cash generation and reinvestment capacity even if some operational metrics fluctuate.
Successful project execution and bolt-on acquisitions
Timely completion of new projects and integration of hydro acquisitions that immediately contribute to EBITDA demonstrate execution capability. This expands scale and near-term cash generation, strengthening the asset base and supporting future contracting and growth initiatives over multiple quarters.
Negative Factors
Elevated leverage
Net debt at multiple turns of EBITDA strains flexibility and raises refinancing and rating risks. High leverage increases susceptibility to rising interest costs and limits capacity for organic investment or opportunistic M&A, pressuring long-term strategic options and financial resilience.
Weak free cash flow conversion
Very low FCF conversion and sharply negative FCF growth limit the firm's ability to deleverage, sustain dividends, or fund capex internally. Persistent cash conversion weakness increases dependence on external financing and heightens vulnerability to liquidity stress in adverse market conditions.
Curtailment and operational/regulatory risks
Chronic curtailment of renewables and regulatory uncertainty (including measures like provisional measure 304) reduce realized output and merchant revenues. Combined with recent workplace accidents, these issues create sustained operational, compliance and reputational risks that can depress long-term asset productivity.
Engie Brasil Energia SA (EGIEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.98B
Dividend Yield5.91%
Average Volume (3M)36.03K
Price to Earnings (P/E)14.8
Beta (1Y)0.17
Revenue Growth7.97%
EPS Growth-35.05%
CountryUS
Employees1,247
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.13
Shares Outstanding1,142,298,800
10 Day Avg. Volume34,528
30 Day Avg. Volume36,035
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)2.93
Price to Sales (P/S)2.96
P/FCF Ratio16.58
Enterprise Value/Market Cap8.21
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit9.53
Enterprise Value/Ebitda8.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.56
Revenue Forecast (FY)$2.18B
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 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The earnings call reflected a broadly positive outlook with strong project completions, acquisitions, and financial performance. However, challenges such as decreased net income, operational accidents, and increased indebtedness were highlighted. The company is actively addressing curtailment issues and regulatory uncertainties.Q3-2025 Updates
Positive Updates
Project Completion and Operational Start
ENGIE Brasil Energia has nearly completed the physical phases of the Assuruá and Assu Sol projects, starting operational commercial operations on time.
Acquisition of Hydro Power Plants
Completed acquisition and integration of two hydro power plants, Santo Antonio do Jari and Cachoeira, into the portfolio, contributing to EBITDA since mid-August.
Trophy of Transparency
Won the trophy of transparency in accounting (Anefac) for the 15th time, recognizing the quality of financial statements.
Best Place to Work Certification
Certified as the Best Place to Work by Great Place to Work Brazil, highlighting achievements by the HR team.
Robust Financial Results
EBITDA grew by 12.54% compared to Q4 '24, and year-to-date EBITDA increased by 6.4% in '25.
Energy Trading Success
17.6% increase in the number of consumers, with a 24% growth in consumer units served in Q3 '25.
Negative Updates
Decrease in Net Income
Net recurring results decreased by 8.4% year-to-date due to increased depreciation, higher financial expenses, and increased tax expenses.
Accidents During Operations
Four accidents with work stop days occurred in the last quarter of '25, requiring ongoing attention and focus.
Curtailment Issues
Curtailment significantly impacted wind and solar generation, with ongoing challenges in managing these effects.
Increased Indebtedness
Indebtedness increased due to acquisitions, with net debt reaching 3.2x EBITDA, raising concerns about maintaining AAA rating.
Company Guidance
During ENGIE Brasil Energia's Third Quarter 2025 earnings call, the company provided guidance on several key metrics and developments. The company reported a solid financial performance, with EBITDA growing by 12.54% compared to the previous quarter of 2024 and a year-to-date increase of 6.4% for 2025. However, the net recurring results saw a decline of 8.4% year-to-date, primarily due to increased asset depreciation, higher financial expenses linked to Brazil's elevated interest rates, and rising tax expenses. Significant operational achievements included the near-completion of the Assuruá and Assu Sol projects and the integration of Santo Antonio do Jari and Cachoeira hydro power plants into their portfolio. The company also highlighted its recognition for transparency in accounting and as one of the best places to work in Brazil. In the ESG domain, the company acknowledged challenges related to four workplace accidents but continued to promote gender diversity within its leadership. Efforts to address curtailment issues in renewable energy generation were ongoing, with hopes for regulatory solutions from ANEEL and the National Integration System. Additionally, ENGIE discussed its strategy of gradual energy contracting and the potential impact of Brazil's provisional measure 304 on curtailment, emphasizing the importance of maintaining flexibility in response to market conditions.Engie Brasil Energia SA Financial Statement Overview
Summary
Engie Brasil Energia SA demonstrates strong revenue growth and profitability, but faces challenges with high leverage and cash flow constraints. The company needs to address its debt levels and improve cash flow generation to ensure long-term financial stability. Despite these challenges, the company's profitability metrics remain strong, supporting its overall financial health.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.78
Positive
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.65
Positive
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.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.61B | 11.22B | 10.75B | 11.91B | 12.54B |
| Gross Profit | 5.85B | 6.11B | 5.91B | 5.59B | 5.91B |
| EBITDA | 6.75B | 8.56B | 6.86B | 6.21B | 7.00B |
| Net Income | 2.53B | 4.28B | 3.43B | 2.66B | 1.56B |
Balance Sheet | |||||
| Total Assets | 55.29B | 50.11B | 42.22B | 38.19B | 38.12B |
| Cash, Cash Equivalents and Short-Term Investments | 3.37B | 4.39B | 5.33B | 2.81B | 5.70B |
| Total Debt | 34.21B | 24.13B | 20.68B | 17.94B | 20.26B |
| Total Liabilities | 41.38B | 37.83B | 32.41B | 29.75B | 30.18B |
| Stockholders Equity | 12.75B | 11.27B | 8.86B | 8.44B | 7.93B |
Cash Flow | |||||
| Free Cash Flow | 2.25B | -2.49B | 2.02B | 1.76B | 748.88M |
| Operating Cash Flow | 3.97B | 4.15B | 4.59B | 3.34B | 1.99B |
| Investing Cash Flow | -4.30B | -5.91B | -2.04B | -1.78B | -339.05M |
| Financing Cash Flow | -260.50M | 459.25M | 476.35M | -4.47B | -1.03B |
Engie Brasil Energia SA Technical Analysis
Neutral
5.83
Price Trends
6.21
Negative
5.86
Positive
5.57
Positive
Market Momentum
-0.06
Positive
45.22
Neutral
10.95
Positive
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 5.83 is below the 20-day moving average (MA) of 6.32, below the 50-day MA of 6.21, and above the 200-day MA of 5.57, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.38B | 41.27 | 14.42% | 2.00% | -4.16% | -40.47% | |
67 Neutral | $6.98B | 14.75 | 24.72% | 5.91% | 7.97% | -35.05% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $5.65B | 7.51 | 7.43% | 5.63% | -25.78% | -91.93% | |
50 Neutral | $6.38B | -140.94 | 4.85% | 2.80% | 10.65% | -10.67% |
* Utilities Sector Average
EGIEY
Engie Brasil Energia SA
6.11
1.41
29.95%
TXNM
TXNM Energy
58.46
5.61
10.62%
ENIC
Enel Chile SA
4.05
0.80
24.46%
CEPU
Central Puerto SA
15.53
3.91
33.65%
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.