Equatorial Energia (BVMF:EQTL3) Has A Somewhat Strained Balance Sheet
Oct 17
Brazilian (BOVESPA) Utilities Sector Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies42
- 7D-0.1%
- 3M-1.1%
- 1Y14.8%
- YTD14.6%
The Utilities is pretty flat in the last 7 days, but Rede Energia Participações has stood out, gaining 6.0%. The past year has been better, since the industry has gained 15% in that time. Earnings are forecast to grow by 20% annually.
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 |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | R$621.7b | R$458.5b | R$51.5b | 8.3x | 12.1x | 1.4x |
| Sat, 29 Oct 2022 | R$632.3b | R$470.8b | R$54.9b | 9x | 11.5x | 1.3x |
| Mon, 26 Sep 2022 | R$619.5b | R$474.3b | R$55.4b | 9x | 11.2x | 1.3x |
| Wed, 24 Aug 2022 | R$625.7b | R$470.2b | R$58.6b | 8.7x | 10.7x | 1.3x |
| Fri, 22 Jul 2022 | R$575.6b | R$463.2b | R$61.0b | 7.6x | 9.4x | 1.2x |
| Sun, 19 Jun 2022 | R$540.6b | R$463.2b | R$61.0b | 8.1x | 8.9x | 1.2x |
| Tue, 17 May 2022 | R$518.1b | R$453.9b | R$58.9b | 7.8x | 8.8x | 1.1x |
| Thu, 14 Apr 2022 | R$556.1b | R$450.1b | R$60.5b | 8.6x | 9.2x | 1.2x |
| Sat, 12 Mar 2022 | R$495.7b | R$438.8b | R$63.5b | 7x | 7.8x | 1.1x |
| Mon, 07 Feb 2022 | R$481.5b | R$434.9b | R$64.4b | 6.9x | 7.5x | 1.1x |
| Wed, 05 Jan 2022 | R$466.1b | R$434.9b | R$64.4b | 6.7x | 7.2x | 1.1x |
| Fri, 03 Dec 2021 | R$480.2b | R$444.4b | R$66.0b | 6.8x | 7.3x | 1.1x |
| Sun, 31 Oct 2021 | R$480.0b | R$412.8b | R$65.2b | 6.8x | 7.4x | 1.2x |
| Tue, 28 Sep 2021 | R$510.7b | R$404.3b | R$63.8b | 7.2x | 8x | 1.3x |
| Thu, 26 Aug 2021 | R$511.7b | R$404.1b | R$63.5b | 8.4x | 8.1x | 1.3x |
| Fri, 02 Jul 2021 | R$522.0b | R$393.7b | R$62.3b | 8.8x | 8.4x | 1.3x |
| Mon, 05 Apr 2021 | R$515.7b | R$367.9b | R$55.8b | 9.5x | 9.2x | 1.4x |
| Thu, 07 Jan 2021 | R$500.1b | R$345.2b | R$49.1b | 10.3x | 10.2x | 1.4x |
| Wed, 30 Sep 2020 | R$462.4b | R$341.4b | R$45.4b | 10.6x | 10.2x | 1.4x |
| Sat, 04 Jul 2020 | R$487.4b | R$341.6b | R$44.9b | 11.8x | 10.9x | 1.4x |
| Tue, 07 Apr 2020 | R$410.3b | R$342.8b | R$43.8b | 9.6x | 9.4x | 1.2x |
| Fri, 10 Jan 2020 | R$496.4b | R$329.6b | R$43.4b | 11.4x | 11.4x | 1.5x |
Price to Earnings Ratio
9.4x
Current Industry PE
- Investors are optimistic on the Brazilian Utilities industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 12.1x which is higher than its 3-year average PE of 9.6x.
- The industry is trading close to its 3-year average PS ratio of 1.3x.
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 12% 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 | 1.66% | |
| Utilities | -0.14% | |
| Water Utilities | 1.21% | |
| Other Utilities | 0% | |
| Renewable Energy | -0.086% | |
| Electric Utilities | -0.23% | |
| Gas Utilities | -1.28% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 15.4x.
- Analysts are expecting annual earnings growth of 23.6%, which is higher than its past year's earnings decline of 26.5% per year.
- Investors are most pessimistic about the Electric Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 8.3x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 26% per year.
- In contrast, the Electric Utilities industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| REDE3 Rede Energia Participações | R$5.87 | 6.0% +R$696.4m | -7.6% | PE8.1x | |
| ENGI3 Energisa | R$13.35 | 1.8% +R$488.5m | -20.3% | PE11.6x | |
| SBSP3 Companhia de Saneamento Básico do Estado de São Paulo - SABESP | R$59.68 | 1.2% +R$464.8m | 75.7% | PE13.4x | |
| CPFE3 CPFL Energia | R$34.12 | 0.8% +R$311.1m | 27.9% | PE7.8x | |
| AESB3 AES Brasil Energia | R$10.37 | 4.4% +R$263.4m | -8.5% | PS2.2x |