We Think That There Are Some Issues For Engie Brasil Energia (BVMF:EGIE3) Beyond Its Promising Earnings
May 14
Brazilian (BOVESPA) Utilities Sector Analysis
UpdatedMay 17, 2024
DataAggregated Company Financials
Companies38
- 7D1.9%
- 3M-3.0%
- 1Y10.8%
- YTD-3.7%
Over the last 7 days, the Utilities industry has risen 1.9%, driven by gains from CPFL Energia of 5.1%. This means that the industry has gained 11% over the past year. As for the next few years, earnings are expected to grow by 13% per annum.
Sector Valuation and Performance
Has the Brazilian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 17 May 2024 | R$590.7b | R$468.6b | R$56.6b | 8.5x | 10.4x | 1.3x |
| Sun, 14 Apr 2024 | R$591.3b | R$465.6b | R$54.7b | 9.2x | 10.8x | 1.3x |
| Tue, 12 Mar 2024 | R$586.9b | R$440.9b | R$45.1b | 9.5x | 13x | 1.3x |
| Thu, 08 Feb 2024 | R$575.3b | R$433.9b | R$46.0b | 8.4x | 12.5x | 1.3x |
| Sat, 06 Jan 2024 | R$624.8b | R$468.3b | R$47.0b | 12.5x | 13.3x | 1.3x |
| Mon, 04 Dec 2023 | R$610.6b | R$468.3b | R$47.0b | 12.1x | 13x | 1.3x |
| Wed, 01 Nov 2023 | R$551.4b | R$459.3b | R$45.9b | 10.6x | 12x | 1.2x |
| Fri, 29 Sep 2023 | R$572.0b | R$458.7b | R$45.4b | 11x | 12.6x | 1.2x |
| Sun, 27 Aug 2023 | R$578.9b | R$458.7b | R$45.4b | 11x | 12.7x | 1.3x |
| Tue, 25 Jul 2023 | R$594.8b | R$451.3b | R$41.5b | 12.2x | 14.3x | 1.3x |
| Thu, 22 Jun 2023 | R$583.6b | R$449.8b | R$42.4b | 10.2x | 13.8x | 1.3x |
| Sat, 20 May 2023 | R$546.1b | R$449.5b | R$42.5b | 9.9x | 12.8x | 1.2x |
| Mon, 17 Apr 2023 | R$557.4b | R$454.6b | R$45.9b | 9.2x | 12.1x | 1.2x |
| Wed, 15 Mar 2023 | R$539.6b | R$463.1b | R$53.1b | 9.5x | 10.2x | 1.2x |
| Fri, 10 Feb 2023 | R$542.6b | R$461.9b | R$51.5b | 8.4x | 10.5x | 1.2x |
| Sun, 08 Jan 2023 | R$559.8b | R$461.9b | R$51.5b | 8.4x | 10.9x | 1.2x |
| Tue, 06 Dec 2022 | R$612.7b | R$461.2b | R$51.6b | 8.2x | 11.9x | 1.3x |
| Thu, 03 Nov 2022 | R$651.9b | R$469.4b | R$54.8b | 9.6x | 11.9x | 1.4x |
| Sat, 01 Oct 2022 | R$595.7b | R$474.3b | R$55.4b | 8.4x | 10.8x | 1.3x |
| Mon, 29 Aug 2022 | R$617.7b | R$471.1b | R$56.9b | 8.9x | 10.9x | 1.3x |
| Wed, 27 Jul 2022 | R$584.0b | R$463.2b | R$61.0b | 7.7x | 9.6x | 1.3x |
| Fri, 24 Jun 2022 | R$536.4b | R$463.2b | R$61.0b | 8.1x | 8.8x | 1.2x |
| Sun, 22 May 2022 | R$527.8b | R$456.7b | R$60.2b | 8.1x | 8.8x | 1.2x |
| Tue, 19 Apr 2022 | R$570.0b | R$448.5b | R$60.5b | 8.5x | 9.4x | 1.3x |
| Thu, 17 Mar 2022 | R$496.5b | R$438.9b | R$63.4b | 7x | 7.8x | 1.1x |
| Sat, 12 Feb 2022 | R$482.5b | R$434.9b | R$64.4b | 6.9x | 7.5x | 1.1x |
| Mon, 10 Jan 2022 | R$456.3b | R$434.9b | R$64.4b | 6.4x | 7.1x | 1x |
| Wed, 08 Dec 2021 | R$485.6b | R$443.4b | R$65.9b | 6.5x | 7.4x | 1.1x |
| Fri, 05 Nov 2021 | R$480.1b | R$415.1b | R$65.3b | 7x | 7.4x | 1.2x |
| Sun, 03 Oct 2021 | R$506.7b | R$404.3b | R$63.8b | 7.2x | 7.9x | 1.3x |
| Tue, 31 Aug 2021 | R$510.4b | R$404.1b | R$63.5b | 8.4x | 8x | 1.3x |
| Wed, 07 Jul 2021 | R$522.0b | R$393.7b | R$62.3b | 8.8x | 8.4x | 1.3x |
Price to Earnings Ratio
9.5x
Current Industry PE
- Investors are relatively neutral on the Brazilian Utilities industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 10.5x.
- The industry is trading close to its 3-year average PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 8.4% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Brazilian Utilities sector?
| BR Market | 0.54% | |
| Utilities | 1.90% | |
| Renewable Energy | 3.40% | |
| Water Utilities | 2.17% | |
| Electric Utilities | 1.66% | |
| Gas Utilities | 0% | |
| Other Utilities | 0% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 15.3x.
- Analysts are expecting annual earnings growth of 35.6%, which is lower than the prior year's growth of 99.0% per year.
- Investors are most pessimistic about the Electric Utilities industry, which is trading close to its 3-year average of 9.7x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 36% over the next 5 years.
- However this is lower than its past earnings growth rate of 99% per year.
- In contrast, the Electric Utilities industry is expected to see its earnings grow by 7.1% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CPFE3 CPFL Energia | R$34.10 | 5.1% +R$1.9b | 7.2% | PE7x | |
| NEOE3 Neoenergia | R$20.17 | 5.1% +R$1.2b | 26.7% | PE5.6x | |
| EGIE3 Engie Brasil Energia | R$44.25 | 2.9% +R$1.0b | 3.8% | PE8.5x | |
| AESB3 AES Brasil Energia | R$11.13 | 16.1% +R$927.0m | -10.1% | PE485.4x | |
| SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP | R$79.74 | 1.7% +R$909.1m | 56.3% | PE15.1x |
