Equatorial Energia S.A., through its subsidiaries, generates, transmits, and distributes electricity in Brazil.
Acceptable track record and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
7 Day Return
US Electric Utilities
1 Year Return
US Electric Utilities
Return vs Industry: EQUE.Y exceeded the US Electric Utilities industry which returned 28.6% over the past year.
Return vs Market: EQUE.Y exceeded the US Market which returned 20.1% over the past year.
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
Is Equatorial Energia undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EQUE.Y ($5.94) is trading above our estimate of fair value ($3.38)
Significantly Below Fair Value: EQUE.Y is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EQUE.Y is good value based on its PE Ratio (17.2x) compared to the Electric Utilities industry average (26.6x).
PE vs Market: EQUE.Y is good value based on its PE Ratio (17.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: EQUE.Y is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: EQUE.Y is overvalued based on its PB Ratio (4x) compared to the US Electric Utilities industry average (2.4x).
How is Equatorial Energia forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQUE.Y's forecast earnings growth (13.6% per year) is above the savings rate (1.7%).
Earnings vs Market: EQUE.Y's earnings (13.6% per year) are forecast to grow slower than the US market (14.6% 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 (7.6% 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 high in 3 years time (22.3%)
How has Equatorial Energia performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQUE.Y has a high level of non-cash earnings.
Growing Profit Margin: EQUE.Y's current net profit margins (9.5%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: EQUE.Y's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: EQUE.Y's earnings growth over the past year (56.9%) exceeds its 5-year average (13% per year).
Earnings vs Industry: EQUE.Y earnings growth over the past year (56.9%) exceeded the Electric Utilities industry 7.3%.
Return on Equity
High ROE: Whilst EQUE.Y's Return on Equity (23.75%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is Equatorial Energia's financial position?
Financial Position Analysis
Short Term Liabilities: EQUE.Y's short term assets (R$9.7B) exceed its short term liabilities (R$5.8B).
Long Term Liabilities: EQUE.Y's short term assets (R$9.7B) do not cover its long term liabilities (R$20.4B).
Debt to Equity History and Analysis
Debt Level: EQUE.Y's debt to equity ratio (215.5%) is considered high.
Reducing Debt: EQUE.Y's debt to equity ratio has increased from 116.5% to 215.5% over the past 5 years.
Debt Coverage: EQUE.Y's debt is not well covered by operating cash flow (1.5%).
Interest Coverage: EQUE.Y's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Inventory Level: EQUE.Y has a low level of unsold assets or inventory.
Debt Coverage by Assets: EQUE.Y's debt is not covered by short term assets (assets are 0.6x debt).
What is Equatorial Energia's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EQUE.Y's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: EQUE.Y's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: EQUE.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: EQUE.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: EQUE.Y is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EQUE.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Augusto da Paz Júnior 0
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 ...
|CEO & Member of the Executive Board||4.3yrs||no data||no data|
|Member of Executive Board||0yrs||no data||no data|
|Director of Regulatory Affairs & Member of Executive Board||0yrs||no data||no data|
|Member of Executive Board||4.3yrs||no data||no data|
|Member of Executive Board||0yrs||no data||no data|
|Member of Executive Board||2.5yrs||no data||no data|
|Accounting & Taxes Manager||0yrs||no data||no data|
Experienced Management: EQUE.Y's management team is considered experienced (4.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Equatorial Energia S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Equatorial Energia S.A.
- Ticker: EQUE.Y
- Exchange: OTCPK
- Founded: 1958
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: R$26.548b
- Listing Market Cap: R$6.146b
- Shares outstanding: 1.01b
- Website: https://www.equatorialenergia.com.br
- Equatorial Energia S.A.
- Edifício Business Center Tower
- Conj. A, Bloco C, sala 702
- Distrito Federal
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EQTL3||BOVESPA (Bolsa de Valores de Sao Paulo)||Yes||Common Shares||BR||BRL||Apr 2008|
|EQUE.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Dec 2008|
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 concession area of approximately 331,937 square kilometers serving approximately 6.9 million clients. The company also distributes electric in a concession area covering 1,247,955 square kilometers serving approximately 8.3 million consumers in 144 municipalities of Pará State. In addition, it is involved in the electricity trading business. The company was founded in 1958 and is based in Brasília, Brazil.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/18 00:26|
|End of Day Share Price||2020/02/14 00:00|
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.