OTCPK:EQUE.Y

Stock Analysis Report

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Executive Summary

Equatorial Energia S.A., through its subsidiaries, generates, transmits, and distributes electricity in Brazil. More Details


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

EQUE.Y

0.9%

US Electric Utilities

0.4%

US Market


1 Year Return

-29.3%

EQUE.Y

3.4%

US Electric Utilities

17.8%

US Market

Return vs Industry: EQUE.Y underperformed the US Electric Utilities industry which returned 2.4% over the past year.

Return vs Market: EQUE.Y underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

EQUE.YIndustryMarket
7 Day-0.6%0.9%0.4%
30 Day-8.7%10.8%6.1%
90 Day-26.6%7.8%8.9%
1 Year-29.3%-29.3%6.9%3.4%20.5%17.8%
3 Year-9.8%-12.0%12.7%3.3%42.3%32.9%
5 Year117.7%105.0%51.2%29.2%84.2%63.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQUE.Y ($3.65) is trading below our estimate of fair value ($7.75)

Significantly Below Fair Value: EQUE.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EQUE.Y is good value based on its PE Ratio (7.7x) compared to the US Electric Utilities industry average (20.1x).

PE vs Market: EQUE.Y is good value based on its PE Ratio (7.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: EQUE.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: EQUE.Y is overvalued based on its PB Ratio (2.3x) compared to the US Electric Utilities industry average (2x).


Next Steps

Future Growth

How is Equatorial Energia forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQUE.Y's forecast earnings growth (8.2% per year) is above the savings rate (2.2%).

Earnings vs Market: EQUE.Y's earnings (8.2% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: EQUE.Y's revenue (2.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: EQUE.Y's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQUE.Y's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Equatorial Energia performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQUE.Y has high quality earnings.

Growing Profit Margin: EQUE.Y's current net profit margins (14.4%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: EQUE.Y's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: EQUE.Y's earnings growth over the past year (115.9%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: EQUE.Y earnings growth over the past year (115.9%) exceeded the Electric Utilities industry 6.8%.


Return on Equity

High ROE: Whilst EQUE.Y's Return on Equity (28.23%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Equatorial Energia's financial position?


Financial Position Analysis

Short Term Liabilities: EQUE.Y's short term assets (R$12.6B) exceed its short term liabilities (R$7.7B).

Long Term Liabilities: EQUE.Y's short term assets (R$12.6B) do not cover its long term liabilities (R$22.1B).


Debt to Equity History and Analysis

Debt Level: EQUE.Y's debt to equity ratio (163.1%) is considered high.

Reducing Debt: EQUE.Y's debt to equity ratio has increased from 81.3% to 163.1% over the past 5 years.

Debt Coverage: EQUE.Y's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: EQUE.Y's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EQUE.Y's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: EQUE.Y's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.2%), EQUE.Y's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQUE.Y's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Augusto da Paz Júnior

4.92yrs

Tenure

Mr. Augusto Miranda da Paz Júnior, serves as Director at Equatorial Maranhão Distribuidora de Energia S.A. (formally known as CEMAR - Cia Energetica do Maranhao) and served as Chief Executive Officer since ...


Leadership Team

NamePositionTenureCompensationOwnership
Augusto da Paz Júnior
CEO & Member of the Executive Board4.92yrsno datano data
Leonardo da Silva Lucas Tavares de Lima
Member of Executive Boardno datano datano data
Tinn Amado
Director of Regulatory Affairs & Member of Executive Boardno datano datano data
Carla Medrado
Member of Executive Board4.92yrsno datano data
Serbian dos Santos
Member of Executive Boardno datano datano data
Humberto Nogueira
Member of Executive Board3.17yrsno datano data
Geovane de Lira
Accounting & Taxes Managerno datano datano data

4.9yrs

Average Tenure

Experienced Management: EQUE.Y's management team is considered experienced (4.9 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

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


Key Information

  • Name: Equatorial Energia S.A.
  • Ticker: EQUE.Y
  • Exchange: OTCPK
  • Founded: 1958
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: R$20.948b
  • Listing Market Cap: R$3.723b
  • Shares outstanding: 1.01b
  • Website: https://www.equatorialenergia.com.br

Location

  • Equatorial Energia S.A.
  • Edifício Business Center Tower
  • Conj. A, Bloco C, sala 702
  • Brasília
  • Distrito Federal
  • 70322-915
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQTL3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLApr 2008
EQUE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2008

Biography

Equatorial Energia S.A., through its subsidiaries, generates, transmits, and distributes electricity in Brazil. It primarily distributes electric energy in the 217 municipalities of Maranhão State with a c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 23:37
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.