BOVESPA:EGIE3

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Engie Brasil Energia

Executive Summary

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. More Details


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Engie Brasil Energia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGIE3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EGIE3's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

EGIE3

-0.5%

BR Renewable Energy

-0.7%

BR Market


1 Year Return

-18.7%

EGIE3

-1.8%

BR Renewable Energy

0.8%

BR Market

Return vs Industry: EGIE3 underperformed the BR Renewable Energy industry which returned -1.8% over the past year.

Return vs Market: EGIE3 underperformed the BR Market which returned 0.8% over the past year.


Shareholder returns

EGIE3IndustryMarket
7 Day-3.6%-0.5%-0.7%
30 Day0.7%6.6%4.9%
90 Day5.3%13.2%16.8%
1 Year-15.5%-18.7%1.9%-1.8%3.5%0.8%
3 Year79.1%48.4%131.8%100.1%54.4%37.8%
5 Year133.3%70.2%192.9%123.5%219.0%164.3%

Long-Term Price Volatility Vs. Market

How volatile is Engie Brasil Energia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Engie Brasil Energia undervalued compared to its fair value and its price relative to the market?

14.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGIE3 (R$43.58) is trading above our estimate of fair value (R$43.13)

Significantly Below Fair Value: EGIE3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGIE3 is good value based on its PE Ratio (14.9x) compared to the BR Renewable Energy industry average (19.4x).

PE vs Market: EGIE3 is good value based on its PE Ratio (14.9x) compared to the BR market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: EGIE3 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: EGIE3 is overvalued based on its PB Ratio (5x) compared to the BR Renewable Energy industry average (2.5x).


Next Steps

Future Growth

How is Engie Brasil Energia forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGIE3's forecast earnings growth (8.7% per year) is below the savings rate (9.9%).

Earnings vs Market: EGIE3's earnings (8.7% per year) are forecast to grow slower than the BR market (27.3% per year).

High Growth Earnings: EGIE3's earnings are forecast to grow, but not significantly.

Revenue vs Market: EGIE3's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: EGIE3's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGIE3's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has Engie Brasil Energia performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGIE3 has high quality earnings.

Growing Profit Margin: EGIE3's current net profit margins (21.1%) are lower than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: EGIE3's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: EGIE3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EGIE3 had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Renewable Energy industry average (-21.7%).


Return on Equity

High ROE: Whilst EGIE3's Return on Equity (33.37%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Engie Brasil Energia's financial position?


Financial Position Analysis

Short Term Liabilities: EGIE3's short term assets (R$9.1B) exceed its short term liabilities (R$5.9B).

Long Term Liabilities: EGIE3's short term assets (R$9.1B) do not cover its long term liabilities (R$21.4B).


Debt to Equity History and Analysis

Debt Level: EGIE3's debt to equity ratio (260.2%) is considered high.

Reducing Debt: EGIE3's debt to equity ratio has increased from 66.9% to 260.2% over the past 5 years.

Debt Coverage: EGIE3's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: EGIE3's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Engie Brasil Energia current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGIE3's dividend (3.51%) is higher than the bottom 25% of dividend payers in the BR market (0.95%).

High Dividend: EGIE3's dividend (3.51%) is low compared to the top 25% of dividend payers in the BR market (5%).


Stability and Growth of Payments

Stable Dividend: EGIE3's dividend payments have been volatile in the past 10 years.

Growing Dividend: EGIE3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), EGIE3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGIE3's dividends in 3 years are not forecast to be well covered by earnings (97.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Eduardo Antonio Sattamini

4.5yrs

Tenure

Mr. Eduardo Antônio Gori Sattamini serves as a Director of Transportadora Associada de Gás S.A. Mr. Sattamini serves as a Director of Transportadora Associada de Gás S.A. Mr. Sattamini has been Chief Execu...


Leadership Team

NamePositionTenureCompensationOwnership
Eduardo Antonio Sattamini
CEO, Investor Relations Officer & Member of Management Board4.5yrsno datano data
Marcelo Malta
CFO & Member of Management Board1.42yrsno datano data
Jose Luiz Laydner
Chief Generation Officer & Member of Management Boardno datano datano data
Gabriel dos Santos
Chief Trading Officer2.42yrsno datano data
Guilherme Ferrari
Chief New Businesses1.42yrsno datano data
Marcos Amboni
Chief Regulation & Market Officer and Member of Management Board1.25yrsno datano data
Luciana Nabarrete
Chief Administrative Officer & Member of Management Board1yrno datano data
Gustavo Henrique Novo
CEO of TAG & Alternate Director1yrno datano data
Leonardo Serpa
Alternate Director2yrsno datano data
Natacha Marly Herero Guichard
Group Controllerno datano datano data
Márcio Neves
Manager of Gralha Azul Transmission Projectno datano datano data
Rafael José Bósio
Investor Relations Officerno datano datano data

1.4yrs

Average Tenure

49yo

Average Age

Experienced Management: EGIE3's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jose Luiz Laydner
Chief Generation Officer & Member of Management Boardno datano datano data
Gustavo Henrique Novo
CEO of TAG & Alternate Director1yrno datano data
Leonardo Serpa
Alternate Director2yrsno datano data
Natacha Marly Herero Guichard
Group Controllerno datano datano data
Dirk Achiel Beeuwsaert
Directorno datano datano data
Maurício Bähr
Chairman of the Boardno datano datano data
Manoel Eduardo Lopes
Independent Director1yrno datano data
Paulo de Resende Salgado
Independent Director2.75yrsno datano data
Paulo Jorge Almirante
Vice President1yrno datano data
Simone de Paola Barbieri
Director1yrno datano data
Karin Breitman
Independent Member1yrno datano data
Richard Dumas
Director1yrno datano data

1.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: EGIE3's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Engie Brasil Energia S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Engie Brasil Energia S.A.
  • Ticker: EGIE3
  • Exchange: BOVESPA
  • Founded: 2005
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: R$35.917b
  • Shares outstanding: 815.93m
  • Website: https://www.engieenergia.com.br

Number of Employees


Location

  • Engie Brasil Energia S.A.
  • Rua Paschoal ApOstolo PItsica, no 5064
  • Agronomica
  • Florianópolis
  • Santa Catarina
  • 88025-255
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGIE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 1998
7TE1DB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1998
EGIE3BOVESPA (Bolsa de Valores de Sao Paulo)YesOrdinary SharesBRBRLJun 1998

Biography

Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 60 plants, including 11 hydroelectric power plants; 4 thermal po...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 22:01
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.