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Equatorial Energia S.A. Sponsored Adr (EQUEY)
:EQUEY
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Equatorial Energia SA
(OTC:EQUEY)
Rating:74Outperform
Price Target:
$7.00
▲(4.17% Upside)
Equatorial Energia SA (EQUEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.26B
Dividend Yield1.55%
Average Volume (3M)3.42K
Price to Earnings (P/E)14.9
Beta (1Y)0.02
Revenue Growth1.89%
EPS Growth15.15%
CountryUS
Employees11,123
SectorUtilities
Sector Strength87
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.15
Shares Outstanding1,254,548,100
10 Day Avg. Volume89
30 Day Avg. Volume3,425
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.86
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.33
Enterprise Value/Ebitda1.31
Forecast
1Y Price Target
$7.00Price Target Upside4.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Equatorial Energia SA Business Overview & Revenue Model
Company DescriptionEquatorial Energia S.A., through its subsidiaries, generates, transmits, and distributes electricity in Brazil. It operates through Energy Distribution, Transmission, Renewables, Distributed Generation, Sanitation, Energy Trading, Telecommunications, and Services segments. The company distributes electric energy in the 217 municipalities of Maranhão State with a concession area of approximately 332,000 square kilometers serving approximately 2.5 million consumers; 144 municipalities of Pará State with a concession area covering 1,248,000 square kilometers serving approximately 2.6 million consumers; 224 municipalities of Piauí State with a concession area covering 251,000 square kilometers serving approximately 1.3 million consumers; 102 municipalities of Alagoas State with a concession area covering 27,848 square kilometers serving approximately 1.2 million consumers; 16 municipalities of Amapá State serving approximately 209,000 consumers; and 72 municipalities of Rio de Janeiro State serving approximately 1.8 million consumers. It is also involved in the electricity trading business, as well as telecommunication, services, energy, and sanitation business. The company was founded in 1958 and is based in Brasília, Brazil.
How the Company Makes MoneyEquatorial Energia SA generates revenue through multiple streams, primarily from the distribution and sale of electricity to its customer base, which includes residential, commercial, and industrial sectors. The company benefits from regulated tariffs set by government authorities, ensuring a stable income from its distribution operations. Additionally, Equatorial Energia engages in power generation activities, contributing to its revenue through the sale of electricity in the wholesale market. Strategic acquisitions and partnerships in the energy sector further enhance its financial performance, allowing the company to expand its market presence and improve efficiency. The company also invests in infrastructure and technology to optimize operations and reduce costs, thereby boosting profitability.
Equatorial Energia SA Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q3-2024)
| % Change Since: 0.00%|
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial and operational performance with significant growth in various segments, particularly in energy distribution and renewables. However, there are challenges with increased debt due to recent acquisitions and some impact on the transmission segment. The positive aspects, including robust EBITDA growth and successful capital raising, outweigh the negatives.Q3-2024 Updates
Positive Updates
Capital Increase and Subscription Success
Approved a capital increase via private subscription totaling BRL 2.5 billion, successfully completed with 100% subscription in the first round.
Strong Operating Performance in Energy Distribution
Distributed energy showed significant growth, up 6.7% above Q3 '23, maintaining good collection levels and cost discipline.
Adjusted EBITDA Growth
Achieved an adjusted EBITDA of BRL 2.9 billion, up 16% compared to the same quarter last year.
Improvement in Distribution Segment
Gross margin for distribution grew by 15.3%, with adjusted EBITDA increasing by 20.8%.
Renewables Segment Growth
Adjusted EBITDA grew by 11.7% due to the start-up of new solar farms and surplus generation from wind farms.
Sanitation Segment Progress
Positive EBITDA of BRL 1.3 million with a significant increase in billed sewage savings and water coverage index.
Negative Updates
Debt Increase Due to SABESP Acquisition
Company's net debt increased by about BRL 4.4 billion due to the acquisition of a 15% stake in SABESP.
Transmission Segment Challenges
Adjusted regulatory EBITDA fell by 2.6%, although it would have grown by 2.4% after adjusting for a complementary AVC effect.
Renewables Curtailment Impact
Constraint of impact of 318-megawatt average, 36.2% of total generation, affecting the Serra do Mel wind farm complex.
Company Guidance
In the Q3 2024 earnings call for Equatorial (EQTL3.SA), the company reported a range of financial metrics and strategic developments. They announced a successful capital increase of BRL 2.5 billion, priced at BRL 32.50 per share, with full subscription in the first round. The company utilized these funds for partial repayment of commercial notes and issued incentivized debentures amounting to BRL 2.07 billion, optimizing their debt profile. Operating metrics included a 6.7% year-over-year growth in distributed energy and a fourth consecutive quarter with distribution volumes below the regulatory loss limit. Financially, Equatorial achieved a 16% increase in adjusted EBITDA, reaching BRL 2.9 billion, and a 25.4% rise in adjusted net profit compared to Q3 2023. Their net debt EBITDA ratio was maintained at 3.2x, with cash and cash equivalents totaling BRL 10.8 billion, offering a cash to short-term debt ratio of 2x. The company also highlighted a 20% reduction in investments due to the start-up of solar parks, while projecting continued financial discipline and strategic investment opportunities.Equatorial Energia SA Financial Statement Overview
Summary
Equatorial Energia SA exhibits a strong financial performance with significant revenue growth and stable profitability. The balance sheet shows moderate leverage but stable financial positioning, while the cash flow statement highlights robust cash generation and liquidity.Income Statement
Equatorial Energia SA demonstrates strong performance in its income statement with impressive revenue growth from previous years, indicating robust business expansion. The company maintains a healthy Gross Profit Margin of 25.5% and a Net Profit Margin of 6.8% in the TTM period, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also solid at 19.9% and 25.8% respectively, showing operational efficiency. Overall, the income statement highlights a trajectory of growing revenues and stable profitability.85
Very Positive
Balance Sheet
The balance sheet of Equatorial Energia SA reflects a stable financial position with a Debt-to-Equity Ratio of 2.04, indicating a moderate level of leverage. The Return on Equity (ROE) stands at 11.5%, showcasing decent returns to shareholders. An Equity Ratio of 23.1% suggests a balanced approach to financing and asset management. While there is room for improvement in reducing leverage, the company maintains a strong equity base, supporting its growth initiatives.78
Positive
Cash Flow
Equatorial Energia SA's cash flow statement exhibits a positive Free Cash Flow trend with a notable growth rate of 38.5% from the previous year, indicating effective cash management and operational efficiency. The Operating Cash Flow to Net Income Ratio of 1.52 reflects strong cash generation relative to its net earnings. Furthermore, the Free Cash Flow to Net Income Ratio of 1.89 suggests robust cash performance and liquidity, supporting future investments and debt servicing.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.17B | 40.99B | 26.22B | 23.61B | 17.37B |
| Gross Profit | 10.86B | 10.23B | 7.65B | 6.27B | 5.47B |
| EBITDA | 11.00B | 9.72B | 7.17B | 6.21B | 5.92B |
| Net Income | 2.81B | 2.08B | 1.37B | 3.69B | 2.98B |
Balance Sheet | |||||
| Total Assets | 116.41B | 103.64B | 90.62B | 61.71B | 44.12B |
| Cash, Cash Equivalents and Short-Term Investments | 13.04B | 12.24B | 7.88B | 10.37B | 7.62B |
| Total Debt | 55.93B | 46.56B | 41.30B | 25.46B | 17.82B |
| Total Liabilities | 86.52B | 78.36B | 72.05B | 47.11B | 31.85B |
| Stockholders Equity | 26.11B | 21.09B | 16.61B | 12.76B | 10.46B |
Cash Flow | |||||
| Free Cash Flow | 4.21B | -6.01B | 3.23B | 330.16M | 3.47B |
| Operating Cash Flow | 4.25B | 3.14B | 3.47B | 1.30B | 3.48B |
| Investing Cash Flow | -14.19B | -7.49B | -8.74B | -4.74B | -2.44B |
| Financing Cash Flow | 8.63B | 5.80B | 5.44B | 4.21B | -608.28M |
Equatorial Energia SA Technical Analysis
Positive
6.72
Price Trends
6.50
Positive
6.28
Positive
5.69
Positive
Market Momentum
0.01
Negative
56.74
Neutral
89.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQUEY, the sentiment is Positive. The current price of 6.72 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 6.50, and above the 200-day MA of 5.69, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 89.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQUEY.
Equatorial 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $19.56B | 15.90 | 6.01% | 3.61% | 6.41% | 37.23% | |
74 Outperform | $8.26B | 14.87 | 12.20% | 1.55% | 1.89% | 15.15% | |
69 Neutral | $17.89B | 4.01 | 13.42% | 0.34% | 1.28% | 124.47% | |
69 Neutral | $19.56B | 16.92 | 6.01% | 3.55% | 6.41% | 37.23% | |
68 Neutral | $6.02B | 29.39 | 6.36% | 2.82% | 10.23% | 114.67% | |
66 Neutral | ¥379.87B | 6.99 | 9.30% | 2.60% | 3.14% | -4.97% | |
61 Neutral | $4.60B | 31.98 | 2.89% | 6.57% | -19.56% | -83.31% |
* Utilities Sector Average
Performance Comparison
EQUEY
Equatorial Energia SA
6.60
0.23
3.61%
EBR.B
Centrais Elc Braz Pfb B Elbras
8.95
1.11
14.16%
KEP
Korea Electric Power
14.19
6.97
96.54%
TXNM
TXNM Energy
57.04
17.43
44.00%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
8.31
1.19
16.71%
ENIC
Enel Chile SA
3.40
0.73
27.34%
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.