Light SA (LGSXY)
OTHER OTC:LGSXY
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Light SA
(OTC:LGSXY)
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Rating:54Neutral
Price Target:
$0.81
▼(-9.55% Downside)
Action:Reiterated
Date:04/19/26
The score is mainly held back by weak financial quality: profitability compressed sharply in 2025 and free cash flow turned deeply negative alongside still-elevated leverage. These risks are partly offset by constructive technical momentum and a relatively low P/E valuation.
Positive Factors
Regulated distribution business model
A regulated concession model provides durable, tariff-backed revenue streams tied to energy delivered and approved investments. This regulatory framework reduces exposure to commodity price swings and supports predictable cash flows and investment recovery over multi-year regulatory cycles.
Negative Factors
Sharp margin compression
A collapse in net margin undermines internal earnings retention and resilience to cost shocks. Persistently thin margins reduce the utility's ability to self-fund capex and cushion regulatory timing mismatches, increasing dependence on tariff adjustments or external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated distribution business model
A regulated concession model provides durable, tariff-backed revenue streams tied to energy delivered and approved investments. This regulatory framework reduces exposure to commodity price swings and supports predictable cash flows and investment recovery over multi-year regulatory cycles.
Read all positive factors
Light SA (LGSXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$347.36M
Dividend YieldN/A
Average Volume (3M)24.87K
Price to Earnings (P/E)8.6
Beta (1Y)0.99
Revenue Growth3.25%
EPS Growth20.32%
CountryUS
Employees4,587
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.57
Shares Outstanding372,555,330
10 Day Avg. Volume69,120
30 Day Avg. Volume24,869
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.34
Price to Sales (P/S)0.13
P/FCF Ratio-1.77
Enterprise Value/Market Cap31.54
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit5.97
Enterprise Value/Ebitda4.29
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
Light SA Business Overview & Revenue Model
Company Description
Light S.A., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electric power in Brazil. The company generates power through hydro and wind power plants. It operates in 31 cities of the state of Rio ...
How the Company Makes Money
Light S.A. generates most of its revenue from regulated electricity distribution: it bills end customers for energy delivered over its distribution network, with tariffs and certain service conditions set under Brazil’s electricity regulatory fram...
Light SA Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The earnings call highlights a series of significant positive developments, such as the favorable concession renewal recommendation, improved operational indicators, and increased investments. However, challenges remain, including a decline in energy market demand and higher expenses impacting profitability.Positive Updates
Favorable Recommendation for Concession Renewal
Light received a favorable recommendation for the renewal of its distributors' concession from ANEEL, validating its technical, economic, financial, and operational management criteria.
Negative Updates
Decline in Energy Market Demand
The energy market declined 5.3% year-on-year due to the harshest winter in 19 years, impacting electricity demand in the concession area.
Read all updates
Q3-2025 Updates
Positive
Negative
Favorable Recommendation for Concession Renewal
Light received a favorable recommendation for the renewal of its distributors' concession from ANEEL, validating its technical, economic, financial, and operational management criteria.
Read all positive updates
Company Guidance
During the third quarter earnings call for Light, the company provided guidance on several key metrics reflecting its operational and financial performance. The CEO highlighted a favorable ANEEL recommendation for the renewal of Light's distributors' concession, a move crucial for long-term sustainability and expansion plans. The DEC index, measuring the duration of interruptions, achieved a historical low of 6.08 hours, while the FEC index stood at 3x, both well below regulatory limits. Financially, the company maintained a solid cash position of BRL 2.64 billion, with a net debt-to-EBITDA ratio of 2.89x. The company invested BRL 457 million this quarter, marking a 73% increase year-on-year, and BRL 1.2 billion year-to-date, with a focus on modernizing infrastructure to improve service quality. The CFO also detailed steps for a capital increase of up to BRL 1.5 billion and debt conversion into shares, all part of the court-mandated reorganization plan to ensure financial health and operational efficiency.Light SA Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.32B | 14.30B | 14.12B | 13.00B | 14.27B |
| Gross Profit | 2.43B | 1.75B | 1.37B | 1.73B | 1.79B |
| EBITDA | 2.55B | 2.87B | 2.42B | -2.65B | 1.19B |
| Net Income | 213.09M | 1.64B | 255.16M | -5.67B | 397.94M |
Balance Sheet | |||||
| Total Assets | 25.73B | 25.34B | 23.72B | 24.11B | 28.28B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 3.09B | 2.10B | 2.24B | 4.78B |
| Total Debt | 10.07B | 9.78B | 11.57B | 10.93B | 11.21B |
| Total Liabilities | 20.28B | 20.13B | 20.62B | 21.26B | 19.54B |
| Stockholders Equity | 5.45B | 5.22B | 3.10B | 2.84B | 8.73B |
Cash Flow | |||||
| Free Cash Flow | -1.03B | 1.18B | 622.78M | -1.27B | -1.29B |
| Operating Cash Flow | 375.54M | 2.15B | 1.40B | 200.76M | -42.05M |
| Investing Cash Flow | 129.49M | -1.77B | -360.49M | 152.27M | -1.96B |
| Financing Cash Flow | -580.06M | -482.00M | -787.25M | -705.92M | 1.74B |
Light SA Technical Analysis
Negative
0.89
Price Trends
0.92
Negative
0.92
Negative
0.98
Negative
Market Momentum
-0.05
Positive
31.97
Neutral
10.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGSXY, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 0.92, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 31.97 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LGSXY.
Light 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% | |
57 Neutral | $2.02B | 14.24 | 8.54% | ― | 30.87% | 121.64% | |
56 Neutral | $54.02M | -13.25 | -64.74% | ― | -77.09% | -82.90% | |
54 Neutral | $347.36M | 8.61 | 55.13% | ― | 3.25% | 20.32% | |
54 Neutral | $3.49B | -21.70 | -10.50% | ― | 10.93% | -73.80% | |
53 Neutral | $853.80M | -4.36 | -171.06% | ― | 361.99% | 23.03% | |
47 Neutral | $105.82M | -1.39 | 506.75% | ― | 131.30% | 87.66% |
* Utilities Sector Average
LGSXY
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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.