Light SA (LGSXY) AI Stock Analysis

• Market Cap: $360.47M
• Dividend Yield: N/A
• Average Volume (3M): 24.87K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 0.89
• Revenue Growth: -6.18%
• EPS Growth: N/A
• Country: US
• Employees: 4,587
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.02
• Shares Outstanding: 372,555,330
• 10 Day Avg. Volume: 69,120
• 30 Day Avg. Volume: 24,869
• PEG Ratio: <0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.43
• Enterprise Value/Market Cap: 31.75
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 6.41
• Enterprise Value/Ebitda: 3.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $1.00 ▲(12.36% Upside)

Light SA's overall score reflects strong earnings call insights and valuation, offset by financial performance concerns due to high leverage and declining revenue growth. Technical analysis indicates potential bearish momentum, but the stock's low P/E ratio suggests it may be undervalued.

Positive Factors

Regulatory concession renewal

A favorable ANEEL recommendation for concession renewal materially reduces regulatory risk and secures long-term operating rights in the concession area. This stabilizes future revenue streams, underpins capital investment plans, and supports predictable cash flows over multiple years.

Strong profitability metrics

Sustained high net margin and very strong ROE indicate efficient cost management and effective capital allocation. These durable profitability characteristics enhance the firm's ability to self-fund investments, absorb cyclical shocks, and deliver long-term shareholder returns despite revenue headwinds.

Improved liquidity and capital structure actions

A solid cash buffer plus debt reprofiling (lower rates, extended terms) and planned capital actions materially reduce near-term refinancing risk. This combination improves financial flexibility, funds infrastructure modernization, and supports execution of a multi-year recovery and operational upgrade plan.

Negative Factors

High leverage

A high debt-to-equity ratio increases interest and refinancing vulnerability, limiting strategic optionality. In an industry requiring sustained capex, elevated leverage amplifies downside risk from demand shocks or adverse regulatory outcomes and constrains the company's ability to invest without raising new capital.

Declining revenue growth

A persistent decline in sales reduces scale benefits and pressures margins over time. Even with healthy current margins, ongoing revenue contraction undermines profitability durability, weakens bargaining leverage with partners, and complicates funding for necessary infrastructure and technological upgrades.

Weakened free cash flow generation

A large drop in free cash flow curtails the firm's ability to fund capex, service debt, or absorb shocks without external financing. Lower FCF to net income ratios indicate earnings are less cash-backed, elevating liquidity and refinancing risk over the medium term and limiting strategic investment capacity.

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 de Janeiro covering a population of approximately eleven million customers. The company also engages in the research, planning, building, operation, and exploration of generation and transmission systems; purchase, sale, import, and export of electric and thermal power, gas, and industrial utilities; provision of consulting services in the energy sector; lease of real and personal property; acquisition and sale of goods related to the studies and projects; implementation, operation, and maintenance of construction works and facilities; and trading activities. In addition, it provides services to low voltage clients, including the assembly, renovation, and maintenance of facilities. The company primarily serves residential, commercial, and industrial customers. Light S.A. was founded in 1899 and is based in Rio de Janeiro, Brazil.

How the Company Makes Money

Light SA generates revenue through the sale of its imaging products and solutions to both consumer and commercial markets. The company has a diversified revenue model that includes direct sales of hardware, licensing fees for its proprietary software, and subscription services for ongoing support and software updates. Key revenue streams are derived from partnerships with major technology firms and manufacturers in the automotive and electronics industries, which integrate Light SA's imaging technology into their products. Additionally, the company may benefit from research and development contracts with government and industry partners, further contributing to its earnings.

Light SA Financial Statement Overview

Summary

Light SA shows strong profitability with a net profit margin of 16.10% and a robust return on equity of 41.61%. However, challenges include declining revenue growth at -1.64% and high leverage with a debt-to-equity ratio of 1.76. Cash flow generation has weakened, with a decline in free cash flow growth at -32.85%.

Income Statement

Light SA's income statement shows a strong net profit margin of 16.10% in the TTM, indicating effective cost management and profitability. However, the revenue growth rate is negative at -1.64%, suggesting a decline in sales compared to the previous period. The EBIT and EBITDA margins are healthy at 18.42% and 24.98%, respectively, reflecting operational efficiency. Despite the recent revenue decline, the company has improved its profitability significantly over the past year.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.76, indicating significant leverage which could pose financial risks. However, the return on equity is robust at 41.61%, showcasing strong returns for shareholders. The equity ratio stands at 21.84%, suggesting a moderate level of equity financing. While the company is generating good returns, the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -32.85% in the TTM, which could impact future investments and liquidity. The operating cash flow to net income ratio is 0.34, indicating that a significant portion of net income is backed by cash flow. The free cash flow to net income ratio is 0.30, suggesting that the company is generating cash flow relative to its net income, albeit at a reduced rate compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.26B	14.30B	14.12B	13.00B	14.27B	12.82B
Gross Profit	1.79B	1.75B	1.37B	1.73B	1.79B	2.94B
EBITDA	3.56B	2.87B	2.42B	-2.65B	1.19B	2.73B
Net Income	2.30B	1.64B	255.16M	-5.67B	397.94M	691.92M
Balance Sheet
Total Assets	25.74B	25.34B	23.72B	24.11B	28.28B	26.40B
Cash, Cash Equivalents and Short-Term Investments	2.64B	3.09B	2.10B	2.24B	4.78B	3.15B
Total Debt	9.89B	9.78B	11.57B	10.93B	11.21B	9.79B
Total Liabilities	20.12B	20.13B	20.62B	21.26B	19.54B	19.32B
Stockholders Equity	5.62B	5.22B	3.10B	2.84B	8.73B	7.08B
Cash Flow
Free Cash Flow	595.66M	1.18B	622.78M	-1.27B	-1.29B	1.37B
Operating Cash Flow	1.97B	2.15B	1.40B	200.76M	-42.05M	2.33B
Investing Cash Flow	-925.78M	-1.77B	-360.49M	152.27M	-1.96B	-2.71B
Financing Cash Flow	-721.14M	-482.00M	-787.25M	-705.92M	1.74B	30.11M

Light SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGSXY, the sentiment is Positive. The current price of 0.89 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.92, and below the 200-day MA of 1.02, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGSXY.

Light SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGSXY	68 Neutral	$360.47M	0.95	55.13%	―	-6.18%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$1.97B	18.93	7.64%	―	42.09%	219.69%
NRGV	57 Neutral	$788.61M	-4.84	-111.44%	―	-35.99%	-46.51%
FLNC	56 Neutral	$5.65B	-72.17	-10.72%	―	-16.15%	-324.40%
NXXT	47 Neutral	$124.98M	-0.35	―	―	146.01%	63.18%
WAVE	45 Neutral	$29.50M	-8.34	-54.43%	―	-40.99%	-46.52%