Equatorial Energia SA (EQUEY)
OTHER OTC:EQUEY
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Equatorial Energia SA
(OTC:EQUEY)
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Rating:56Neutral
Price Target:
$8.00
▲(12.99% Upside)
Action:DowngradedDate:04/01/26
The score is capped by inconsistent profitability, high leverage, and volatile/negative free cash flow, despite strong revenue growth and improved operating margin. The earnings call adds support via solid EBITDA, strong liquidity/funding actions, and a successful transmission divestment, while technicals are mixed and valuation is only moderately supported by the dividend given the high P/E.
Positive Factors
Regulated distribution revenue growth
Sustained revenue expansion in the regulated distribution business indicates durable demand and successful tariff/volume realization under Brazil's regulatory framework. This growth supports long‑term cash generation potential and scale advantages tied to a captive customer base and mandated service territories.
Negative Factors
High leverage and heavy debt burden
Elevated leverage constrains financial flexibility and heightens refinancing and interest rate risk for a capital‑intensive utility. Heavy debt relative to equity limits the company's ability to absorb shocks, increases financing costs over time, and can pressure funding capacity for sustained capex programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated distribution revenue growth
Sustained revenue expansion in the regulated distribution business indicates durable demand and successful tariff/volume realization under Brazil's regulatory framework. This growth supports long‑term cash generation potential and scale advantages tied to a captive customer base and mandated service territories.
Read all positive factors
Equatorial Energia SA (EQUEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.41B
Dividend Yield4.94%
Average Volume (3M)339.00
Price to Earnings (P/E)29.5
Beta (1Y)0.10
Revenue Growth5.98%
EPS Growth27.35%
CountryUS
Employees11,123
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)-0.06
Shares Outstanding1,259,019,800
10 Day Avg. Volume236
30 Day Avg. Volume339
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)1.88
Price to Sales (P/S)0.98
P/FCF Ratio-11.99
Enterprise Value/Market Cap10.37
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit10.01
Enterprise Value/Ebitda12.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, Telecommunicatio...
How the Company Makes Money
Equatorial Energia’s core earnings come from regulated electricity distribution. In this model, its distribution companies invoice end customers for electricity supply and for regulated distribution network charges. Revenue and allowed returns are...
Equatorial Energia SA Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call showcased significant achievements and strong financial performance, including awards and recognition, robust EBITDA, effective debt management, and strategic divestments. However, challenges in the Renewables segment, unexpected weather impacts in Rio Grande do Sul, and volatility in expenses were also highlighted.Positive Updates
Recognition and Awards
Equatorial Pará recognized as the best distributor in economic and financial management in the Abradee award; Equatorial Group appeared in the Great Place to Work ranking among the best 20 companies in the country; elected by Extel as the Most Honorable Company in the Utility segment in Latin America, ranking 7 of 8 categories.
Negative Updates
Renewables Segment Decline
Reported a decrease in EBITDA by 8.1% in the Renewables segment, reflecting the effect of curtailment.
Read all updates
Q3-2025 Updates
Positive
Negative
Recognition and Awards
Equatorial Pará recognized as the best distributor in economic and financial management in the Abradee award; Equatorial Group appeared in the Great Place to Work ranking among the best 20 companies in the country; elected by Extel as the Most Honorable Company in the Utility segment in Latin America, ranking 7 of 8 categories.
Read all positive updates
Company Guidance
During Equatorial Group's third quarter 2025 earnings call, the management highlighted several key financial metrics and achievements. The company reported an EBITDA of BRL 3.4 billion and net debt-to-EBITDA covenant of 3.3x. They closed the quarter with BRL 16 billion in cash and engaged in an intense funding window totaling BRL 9.4 billion, which extended the average debt maturity from 5.5 to 5.8 years. Investments during the quarter totaled BRL 3 billion, marking an increase of approximately BRL 600 million compared to the same period last year. The group achieved a margin growth of 4.5% and adjusted net income increased by 4.9% year-over-year to reach BRL 830 million. Additionally, they announced a distribution of BRL 1.8 billion in interest on equity. Operationally, energy distribution grew by 2.6%, and they recorded a collection rate of 99.2%. The company also completed the sale of eight transmission companies with a MOIC of 8.3x and an internal rate of return exceeding 37% per year.Equatorial Energia SA Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 49.25B | 43.17B | 40.99B | 26.22B | 23.61B |
| Gross Profit | 10.79B | 10.86B | 10.23B | 7.65B | 6.27B |
| EBITDA | 8.27B | 11.00B | 9.72B | 7.17B | 6.21B |
| Net Income | 1.65B | 2.81B | 2.08B | 1.37B | 3.69B |
Balance Sheet | |||||
| Total Assets | 109.55B | 116.41B | 103.64B | 90.62B | 61.71B |
| Cash, Cash Equivalents and Short-Term Investments | 10.48B | 13.04B | 12.24B | 7.88B | 10.37B |
| Total Debt | 54.54B | 55.93B | 46.56B | 41.30B | 25.46B |
| Total Liabilities | 81.24B | 86.52B | 78.36B | 72.05B | 47.11B |
| Stockholders Equity | 25.74B | 26.11B | 21.09B | 16.61B | 12.76B |
Cash Flow | |||||
| Free Cash Flow | -4.04B | 4.21B | -6.01B | 3.23B | 330.16M |
| Operating Cash Flow | 3.90B | 4.25B | 3.14B | 3.47B | 1.30B |
| Investing Cash Flow | -2.81B | -14.19B | -7.49B | -8.74B | -4.74B |
| Financing Cash Flow | -1.72B | 8.63B | 5.80B | 5.44B | 4.21B |
Equatorial Energia SA Technical Analysis
Positive
7.08
Price Trends
7.90
Positive
7.53
Positive
6.96
Positive
Market Momentum
0.04
Negative
59.49
Neutral
79.73
Neutral
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 7.08 is below the 20-day moving average (MA) of 7.86, below the 50-day MA of 7.90, and above the 200-day MA of 6.96, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 79.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQUEY.
Equatorial Energia SA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $5.94B | 10.38 | 7.43% | 5.63% | -25.78% | -91.93% | |
62 Neutral | $1.51B | 6.83 | 11.90% | ― | 2.98% | ― | |
61 Neutral | $2.70B | 41.27 | 14.42% | 2.00% | -4.16% | -40.47% | |
56 Neutral | $10.41B | 29.45 | 6.15% | 4.94% | 5.98% | 27.35% |
* Utilities Sector Average
EQUEY
Equatorial Energia SA
8.44
2.86
51.19%
EDN
Edenor SA
31.32
4.09
15.02%
ENIC
Enel Chile SA
4.31
1.27
41.59%
CEPU
Central Puerto SA
16.81
6.66
65.62%
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.