BOVESPA:ENEV3

Stock Analysis Report

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Executive Summary

Eneva S.A., together with its subsidiaries, operates as an integrated energy company in Brazil.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Eneva's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENEV3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

ENEV3

3.5%

BR Renewable Energy

4.1%

BR Market


1 Year Return

82.1%

ENEV3

15.6%

BR Renewable Energy

-3.1%

BR Market

Return vs Industry: ENEV3 exceeded the BR Renewable Energy industry which returned 16.4% over the past year.

Return vs Market: ENEV3 exceeded the BR Market which returned -5% over the past year.


Shareholder returns

ENEV3IndustryMarket
7 Day5.3%3.5%4.1%
30 Day21.3%7.0%5.3%
90 Day40.9%19.3%24.0%
1 Year82.1%82.1%19.0%15.6%0.2%-3.1%
3 Year246.9%246.9%108.7%82.9%64.9%47.0%
5 Year176.7%57.8%101.4%52.3%91.6%58.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eneva undervalued compared to its fair value and its price relative to the market?

22.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENEV3 (R$47.35) is trading above our estimate of fair value (R$33.04)

Significantly Below Fair Value: ENEV3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENEV3 is poor value based on its PE Ratio (23x) compared to the Renewable Energy industry average (16.3x).

PE vs Market: ENEV3 is poor value based on its PE Ratio (23x) compared to the BR market (15x).


Price to Earnings Growth Ratio

PEG Ratio: ENEV3 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ENEV3 is good value based on its PB Ratio (2.1x) compared to the BR Renewable Energy industry average (2.1x).


Next Steps

Future Growth

How is Eneva forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENEV3's forecast earnings growth (22.7% per year) is above the savings rate (10.7%).

Earnings vs Market: ENEV3's earnings (22.7% per year) are forecast to grow slower than the BR market (27.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENEV3's revenue (9.9% per year) is forecast to grow faster than the BR market (9.4% per year).

High Growth Revenue: ENEV3's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ENEV3's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eneva performed over the past 5 years?

68.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENEV3 has high quality earnings.

Growing Profit Margin: ENEV3's current net profit margins (18.8%) are lower than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: ENEV3 has become profitable over the past 5 years, growing earnings by 68.4% per year.

Accelerating Growth: ENEV3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENEV3 had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the Renewable Energy industry average (-5.5%).


Return on Equity

High ROE: ENEV3's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Eneva's financial position?


Financial Position Analysis

Short Term Liabilities: ENEV3's short term assets (R$2.5B) exceed its short term liabilities (R$1.2B).

Long Term Liabilities: ENEV3's short term assets (R$2.5B) do not cover its long term liabilities (R$5.5B).


Debt to Equity History and Analysis

Debt Level: ENEV3's debt to equity ratio (77.4%) is considered high.

Reducing Debt: ENEV3's debt to equity ratio has reduced from 485.8% to 77.4% over the past 5 years.

Debt Coverage: ENEV3's debt is well covered by operating cash flow (28.9%).

Interest Coverage: ENEV3's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Eneva current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ENEV3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ENEV3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ENEV3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ENEV3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ENEV3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ENEV3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Pedro Zinner

3.25yrs

Tenure

Mr. Pedro Zinner has been Chief Executive Officer at Eneva S.A. since March 27, 2017 and has been its Member of The Executive Board since August 04, 2016. Mr. Zinner served as the Chief Investor Relations  ...


Leadership Team

NamePositionTenureCompensationOwnership
Pedro Zinner
CEO & Member of the Executive Board3.25yrsno datano data
Marcelo Habibe
CFO, IRO & Member of Executive Board1.5yrsno datano data
Damian Popolo
Director of Institutional Relations & Regulatory Affairs and Member of Executive Board2.5yrsno datano data
Luis Vasconcelos
Member of Board of Executive Officers1.92yrsno datano data
Thiago Freitas
General Counselno datano datano data
Lino Cancado
VP E&P Division3.58yrsno datano data

2.5yrs

Average Tenure

Experienced Management: ENEV3's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcelo Pereira de Medeiros
Independent Directorno datano datano data
Jose Drummond
Directorno datano datano data
Manuel Leite Caldas
Member of Fiscal Committee4.83yrsno datano data
Jerson Kelman
Chairman of the Boardno datano datano data
Renato Antônio Secondo Mazzola
Independent Directorno datano datano data
Guilherme Bottura
Independent Directorno datano datano data
Lucia Maria Casasanta
Member of Fiscal Committee4.83yrsno datano data
Edwyn Neves
Independent Directorno datano datano data
Lavinia Hollanda
Director2.25yrsno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: ENEV3's board of directors are considered experienced (4.8 years average tenure).


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

Eneva S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eneva S.A.
  • Ticker: ENEV3
  • Exchange: BOVESPA
  • Founded: 2001
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: R$14.952b
  • Shares outstanding: 315.77m
  • Website: https://www.eneva.com.br

Number of Employees


Location

  • Eneva S.A.
  • Praia de Botafogo, 501
  • Torre PAo de ACUcar - 7o andar
  • Rio De Janeiro
  • Rio de Janeiro
  • 22250-040
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENEV3BOVESPA (Bolsa de Valores de Sao Paulo)YesOrdinary SharesBRBRLDec 2007

Biography

Eneva S.A., together with its subsidiaries, operates as an integrated energy company in Brazil. It generates electricity through coal, natural gas, and solar energy. The company has an operational installed generation capacity of 2.2 GWs. It also engages in the exploration, development, and production of natural gas and hydrocarbon; and energy trading activities. The company was formerly known as MPX Energia S.A. and changed its name to Eneva S.A. in October 2013. Eneva S.A. was founded in 2001 and is headquartered in Rio de Janeiro, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 18:05
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
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.