Equatorial Energia SA (EQUEY) AI Stock Analysis

• Market Cap: $8.12B
• Dividend Yield: 2.08%
• Average Volume (3M): 86.00
• Price to Earnings (P/E): 12.9
• Beta (1Y): <0.01
• Revenue Growth: 2.96%
• EPS Growth: 35.76%
• Country: US
• Employees: 11,123
• Sector: Utilities
• Sector Strength: 62
• Industry: Regulated Electric
• EPS (TTM): 0.15
• Shares Outstanding: 1,255,505,000
• 10 Day Avg. Volume: 138
• 30 Day Avg. Volume: 86
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 1.37
• 1Y Price Target: $7.00
• Price Target Upside: 3.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $7.00 ▲(3.55% Upside)

Equatorial Energia SA's stock score is driven by solid financial performance and positive technical indicators. The company's consistent revenue growth and strong profitability margins are significant strengths. However, high leverage and declining free cash flow growth are concerns. The stock's technical indicators suggest a bullish trend, but the valuation is not particularly compelling compared to industry peers.

Equatorial Energia SA Business Overview & Revenue Model

Company Description

Equatorial 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 Money

Equatorial 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 Financial Statement Overview

Summary

Equatorial Energia SA demonstrates solid financial performance with consistent revenue growth and strong profitability margins. However, high leverage and a recent decline in free cash flow growth pose risks. The company should focus on managing its debt levels and improving cash flow generation to sustain its growth trajectory.

Income Statement

Equatorial Energia SA has shown consistent revenue growth with a 3.6% increase in the TTM period. The company maintains solid profitability with a gross profit margin of 24.5% and a net profit margin of 6.9%. EBIT and EBITDA margins are strong at 19.7% and 26.1%, respectively, indicating efficient operations. However, the net profit margin has slightly decreased compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 2.04, suggesting significant leverage, which could pose risks if interest rates rise. However, the return on equity is healthy at 12.2%, indicating effective use of equity capital. The equity ratio stands at 24%, reflecting a moderate level of equity financing relative to total assets.

Cash Flow

Free cash flow has decreased by 13.3% in the TTM period, which is a concern for future investments and debt servicing. The operating cash flow to net income ratio is 0.22, indicating that cash generation is lower relative to net income. However, the free cash flow to net income ratio is strong at 1.24, suggesting that the company is generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.87B	43.17B	40.99B	26.22B	23.61B	17.37B
Gross Profit	11.07B	10.86B	10.23B	7.65B	6.27B	5.47B
EBITDA	12.73B	11.00B	9.72B	7.17B	6.21B	5.92B
Net Income	3.65B	2.81B	2.08B	1.37B	3.69B	2.98B
Balance Sheet
Total Assets	116.70B	116.41B	103.64B	90.62B	61.71B	44.12B
Cash, Cash Equivalents and Short-Term Investments	9.41B	13.04B	12.24B	7.88B	10.37B	7.62B
Total Debt	55.21B	55.93B	46.56B	41.30B	25.46B	17.82B
Total Liabilities	84.59B	86.52B	78.36B	72.05B	47.11B	31.85B
Stockholders Equity	28.00B	26.11B	21.09B	16.61B	12.76B	10.46B
Cash Flow
Free Cash Flow	5.06B	4.21B	-6.01B	3.23B	330.16M	3.47B
Operating Cash Flow	5.06B	4.25B	3.14B	3.47B	1.30B	3.48B
Investing Cash Flow	-12.56B	-14.19B	-7.49B	-8.74B	-4.74B	-2.44B
Financing Cash Flow	7.00B	8.63B	5.80B	5.44B	4.21B	-608.28M

Equatorial Energia SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.76 is above the 20-day moving average (MA) of 6.57, above the 50-day MA of 6.46, and above the 200-day MA of 5.77, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR.B	79 Outperform	$19.22B	16.33	6.01%	7.58%	6.41%	37.23%
EBR	77 Outperform	$19.22B	15.60	6.01%	7.38%	6.41%	37.23%
EQUEY	71 Outperform	$8.12B	12.92	13.91%	2.08%	2.96%	35.76%
TXNM	69 Neutral	$5.99B	29.25	6.36%	2.83%	10.23%	114.67%
KEP	68 Neutral	$17.31B	3.82	15.47%	0.36%	1.28%	124.47%
Sector *	66 Neutral	$17.25B	17.99	5.54%	3.64%	6.63%	11.55%
ENIC	61 Neutral	$5.09B	34.98	2.89%	6.04%	-19.56%	-83.31%