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Equatorial Energia

OTCPK:EQUE.Y
Snowflake Description

High growth potential and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EQUE.Y
OTCPK
R$19B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

Equatorial Energia S.A., through its subsidiaries, generates, transmits, and distributes electricity in Brazil. The last earnings update was 61 days ago. More info.


Add to Portfolio Compare Print
  • Equatorial Energia has significant price volatility in the past 3 months.
EQUE.Y Share Price and Events
7 Day Returns
8.5%
OTCPK:EQUE.Y
-0.5%
US Electric Utilities
0.6%
US Market
1 Year Returns
85.3%
OTCPK:EQUE.Y
14.4%
US Electric Utilities
4.7%
US Market
EQUE.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Equatorial Energia (EQUE.Y) 8.5% 18.5% 32.2% 85.3% 81.1% 137.2%
US Electric Utilities -0.5% 1.1% 3.9% 14.4% 15.5% 42.4%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • EQUE.Y outperformed the Electric Utilities industry which returned 14.4% over the past year.
  • EQUE.Y outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
EQUE.Y
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Equatorial Energia's competitors could be found in our database.

EQUE.Y Value

 Is Equatorial Energia undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Equatorial Energia to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Equatorial Energia.

OTCPK:EQUE.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:EQUE.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.26
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.262 (1 + (1- 34%) (77.92%))
0.596
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for OTCPK:EQUE.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Equatorial Energia is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:EQUE.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 7.5%)
2020 -961.00 Analyst x3 -893.97
2021 1,509.50 Analyst x2 1,306.27
2022 2,170.37 Est @ 43.78% 1,747.16
2023 2,853.29 Est @ 31.47% 2,136.70
2024 3,505.12 Est @ 22.84% 2,441.75
2025 4,094.34 Est @ 16.81% 2,653.27
2026 4,609.66 Est @ 12.59% 2,778.86
2027 5,053.55 Est @ 9.63% 2,833.96
2028 5,435.57 Est @ 7.56% 2,835.58
2029 5,767.72 Est @ 6.11% 2,798.99
Present value of next 10 years cash flows R$20,638.55
OTCPK:EQUE.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= R$5,767.72 × (1 + 2.73%) ÷ (7.5% – 2.73%)
R$124,269.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$124,269.77 ÷ (1 + 7.5%)10
R$60,306.16
OTCPK:EQUE.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$20,638.55 + R$60,306.16
R$80,944.71
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$80,944.71 / 201.10
R$402.51
OTCPK:EQUE.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:EQUE.Y represents 0.28563x of BOVESPA:EQTL3
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.28563x
Value per Share
(Listing Adjusted, USD)
= Value per Share (BRL) x Listing Adjustment Factor
= R$ 402.51 x 0.28563
$114.97
Value per share (USD) From above. $114.97
Current discount Discount to share price of $27.52
= -1 x ($27.52 - $114.97) / $114.97
76.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Equatorial Energia is available for.
Intrinsic value
>50%
Share price is $27.52 vs Future cash flow value of $114.97
Current Discount Checks
For Equatorial Energia to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Equatorial Energia's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Equatorial Energia's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Equatorial Energia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Equatorial Energia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:EQUE.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in BRL R$5.21
BOVESPA:EQTL3 Share Price ** BOVESPA (2019-07-12) in BRL R$96.35
United States of America Electric Utilities Industry PE Ratio Median Figure of 26 Publicly-Listed Electric Utilities Companies 22.55x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Equatorial Energia.

OTCPK:EQUE.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BOVESPA:EQTL3 Share Price ÷ EPS (both in BRL)

= 96.35 ÷ 5.21

18.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equatorial Energia is good value based on earnings compared to the US Electric Utilities industry average.
  • Equatorial Energia is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Equatorial Energia's expected growth come at a high price?
Raw Data
OTCPK:EQUE.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
23.4%per year
United States of America Electric Utilities Industry PEG Ratio Median Figure of 22 Publicly-Listed Electric Utilities Companies 3.2x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

OTCPK:EQUE.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.49x ÷ 23.4%

0.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equatorial Energia is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Equatorial Energia's assets?
Raw Data
OTCPK:EQUE.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in BRL R$28.42
BOVESPA:EQTL3 Share Price * BOVESPA (2019-07-12) in BRL R$96.35
United States of America Electric Utilities Industry PB Ratio Median Figure of 29 Publicly-Listed Electric Utilities Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
OTCPK:EQUE.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BOVESPA:EQTL3 Share Price ÷ Book Value per Share (both in BRL)

= 96.35 ÷ 28.42

3.39x

* Primary Listing of Equatorial Energia.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Equatorial Energia is overvalued based on assets compared to the US Electric Utilities industry average.
X
Value checks
We assess Equatorial Energia's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Equatorial Energia has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EQUE.Y Future Performance

 How is Equatorial Energia expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Equatorial Energia expected to grow at an attractive rate?
  • Equatorial Energia's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Equatorial Energia's earnings growth is expected to exceed the United States of America market average.
  • Equatorial Energia's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:EQUE.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:EQUE.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 23.4%
OTCPK:EQUE.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 8.9%
United States of America Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 8.1%
United States of America Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:EQUE.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:EQUE.Y Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,029
2021-12-31 15,092 2,141 1,465 5
2020-12-31 14,017 1,526 983 7
2019-12-31 12,589 1,353 846 6
OTCPK:EQUE.Y Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2019-03-31 12,170 1,524 1,048
2018-12-31 11,253 1,839 918
2018-09-30 10,231 1,085 961
2018-06-30 9,928 1,175 1,024
2018-03-31 9,766 1,072 1,030
2017-12-31 9,071 1,057 997
2017-09-30 8,705 1,093 694
2017-06-30 8,287 912 571
2017-03-31 7,966 919 623
2016-12-31 7,952 868 712
2016-09-30 7,469 925 649
2016-06-30 7,327 1,057 541

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Equatorial Energia's earnings are expected to grow significantly at over 20% yearly.
  • Equatorial Energia's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:EQUE.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Equatorial Energia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:EQUE.Y Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 6.67 8.72 4.30 6.00
2020-12-31 4.80 5.08 4.47 8.00
2019-12-31 4.14 4.74 3.50 7.00
OTCPK:EQUE.Y Past Financials Data
Date (Data in BRL Millions) EPS *
2019-03-31 5.21
2018-12-31 4.62
2018-09-30 4.83
2018-06-30 5.15
2018-03-31 5.18
2017-12-31 5.02
2017-09-30 3.49
2017-06-30 2.87
2017-03-31 3.13
2016-12-31 3.58
2016-09-30 3.27
2016-06-30 2.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Equatorial Energia is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Equatorial Energia's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Equatorial Energia has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EQUE.Y Past Performance

  How has Equatorial Energia performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Equatorial Energia's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Equatorial Energia's year on year earnings growth rate has been positive over the past 5 years.
  • Equatorial Energia's 1-year earnings growth is less than its 5-year average (1.7% vs 17.4%)
  • Equatorial Energia's earnings growth has not exceeded the US Electric Utilities industry average in the past year (1.7% vs 9.7%).
Earnings and Revenue History
Equatorial Energia's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Equatorial Energia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:EQUE.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 12,170.12 1,048.09 637.46
2018-12-31 11,252.63 917.94 640.33
2018-09-30 10,231.24 960.77 1,036.77
2018-06-30 9,928.20 1,024.42 1,099.22
2018-03-31 9,766.38 1,030.41 1,111.22
2017-12-31 9,071.42 997.26 1,116.62
2017-09-30 8,705.22 694.16 1,224.32
2017-06-30 8,287.38 571.20 1,150.69
2017-03-31 7,965.78 622.90 1,030.08
2016-12-31 7,952.18 712.22 919.30
2016-09-30 7,469.38 648.89 810.41
2016-06-30 7,327.20 540.59 785.93
2016-03-31 7,189.90 861.92 781.14
2015-12-31 7,252.94 808.48 801.54
2015-09-30 7,683.74 1,192.16 729.76
2015-06-30 7,492.15 1,393.64 683.20
2015-03-31 7,126.70 708.50 669.83
2014-12-31 6,773.45 637.76 646.74
2014-09-30 5,678.35 49.36 596.00
2014-06-30 5,210.79 -32.84 635.61
2014-03-31 4,974.52 107.85 622.11
2013-12-31 4,715.04 68.64 653.84
2013-09-30 4,533.28 34.35 693.10
2013-06-30 3,970.65 -24.91 579.72
2013-03-31 3,414.59 63.63 506.40
2012-12-31 2,884.50 136.33 394.72
2012-09-30 2,339.11 266.66 263.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Equatorial Energia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Equatorial Energia used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.
  • Equatorial Energia has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Equatorial Energia's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Equatorial Energia has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EQUE.Y Health

 How is Equatorial Energia's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Equatorial Energia's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Equatorial Energia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Equatorial Energia's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Equatorial Energia's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Equatorial Energia Company Filings, last reported 3 months ago.

OTCPK:EQUE.Y Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,735.41 15,098.85 4,992.68
2018-12-31 6,552.87 11,551.10 4,743.99
2018-09-30 6,252.81 8,318.96 4,753.61
2018-06-30 5,942.57 7,884.90 4,439.37
2018-03-31 5,836.34 7,211.04 4,100.32
2017-12-31 5,748.10 6,990.19 4,173.39
2017-09-30 5,445.25 4,902.89 2,661.32
2017-06-30 5,059.46 4,862.84 2,525.21
2017-03-31 4,933.46 4,705.00 2,730.39
2016-12-31 4,871.69 4,865.61 3,057.92
2016-09-30 4,832.39 3,560.44 2,046.71
2016-06-30 4,593.24 3,744.55 2,326.54
2016-03-31 4,400.16 3,748.55 2,444.32
2015-12-31 4,229.24 3,935.14 2,481.34
2015-09-30 4,245.70 3,801.69 2,290.08
2015-06-30 4,139.69 3,360.69 1,835.50
2015-03-31 3,563.37 4,451.02 1,716.35
2014-12-31 3,445.53 4,374.87 1,963.66
2014-09-30 3,012.02 3,505.54 1,232.57
2014-06-30 2,678.65 3,351.27 1,363.13
2014-03-31 2,878.33 3,166.21 1,346.08
2013-12-31 2,847.65 3,225.39 1,613.02
2013-09-30 2,881.21 3,095.96 1,592.61
2013-06-30 2,654.77 3,076.47 1,519.67
2013-03-31 2,723.19 2,868.63 1,338.93
2012-12-31 2,515.59 3,077.73 1,725.20
2012-09-30 1,464.66 1,581.80 496.93
  • Equatorial Energia's level of debt (224.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (110.2% vs 224.2% today).
  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Equatorial Energia's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Equatorial Energia has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EQUE.Y Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1%
Current annual income from Equatorial Energia dividends. Estimated to be 1.42% next year.
If you bought $2,000 of Equatorial Energia shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Equatorial Energia's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Equatorial Energia's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:EQUE.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:EQUE.Y Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.56 4.00
2020-12-31 1.61 6.00
2019-12-31 0.92 5.00
OTCPK:EQUE.Y Past Annualized Dividends Data
Date (Data in R$) Dividend per share (annual) Avg. Yield (%)
2019-04-01 0.960 1.137
2018-03-09 1.210 1.802
2018-03-08 1.210 1.673
2017-03-09 0.860 1.426
2016-03-11 1.000 2.010
2015-02-13 0.780 2.303
2015-02-12 0.770 2.857
2014-02-27 0.090 0.375
2014-02-26 0.090 0.449
2013-04-01 0.170 0.819
2012-07-27 0.460 2.554
2012-02-16 0.460 3.255
2012-02-15 0.460 3.755
2011-03-29 1.800 15.256
2010-03-29 0.470 3.622
2010-03-26 0.470 2.816
2009-02-17 1.912 12.100

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Equatorial Energia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Equatorial Energia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Equatorial Energia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Equatorial Energia has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EQUE.Y Management

 What is the CEO of Equatorial Energia's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Augusto da Paz Júnior
TENURE AS CEO 3.7 years
CEO Bio

Mr. Augusto Miranda da Paz Júnior, has been Chief Executive Officer of CEMAR - Cia Energetica do Maranhao since April 2010 and serves as its Member of The Executive Officers Board and Director. Mr. da Paz Júnior has been Chief Executive Officer at Equatorial Energia S.A. since November 6, 2015 and serves as its Member of Board of Executive Officers. He served as Chief Operations Officer at CEMAR - Cia Energetica do Maranhao from 2007 to 2010 and also served as its Director of Engineering. Mr. da Paz Júnior served as the Chairman of Centras Elétricas do Pará S/A since April 2010 and has been its Director since April 30, 2013. He holds a Bachelor’s Degree in Electric Engineering from Universidade Federal da Bahia. He holds a postgraduate degree in Maintenance Management from Eletrobrás in partnership with PUC/RJ and with Escola Federal de Engenharia de Itajubá/MG. He also holds an MBA in Management of Energy Companies from FGV/SP.

CEO Compensation
  • Insufficient data for Augusto to compare compensation growth.
  • Insufficient data for Augusto to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Equatorial Energia management team in years:

3.7
Average Tenure
  • The tenure for the Equatorial Energia management team is about average.
Management Team

Augusto da Paz Júnior

TITLE
CEO & Member of the Executive Board
TENURE
3.7 yrs

Eduardo Haiama

TITLE
CFO, Investor Relations Officer & Member of the Executive Board

Tinn Amado

TITLE
Director of Regulatory Affairs & Member of Executive Board

Leonardo da Silva Lucas Tavares de Lima

TITLE
Member of Executive Board
TENURE
3.7 yrs

Carla Medrado

TITLE
Member of Executive Board
TENURE
3.7 yrs

Servio dos Santos

TITLE
Member of Executive Board

Humberto Nogueira

TITLE
Member of Executive Board
TENURE
1.9 yrs

Geovane de Lira

TITLE
Accounting & Taxes Manager
Board of Directors Tenure

Average tenure and age of the Equatorial Energia board of directors in years:

3.8
Average Tenure
64
Average Age
  • The tenure for the Equatorial Energia board of directors is about average.
Board of Directors

Firmino Neto

TITLE
Chairman of the Board
AGE
73
TENURE
4.3 yrs

Guilherme Aché

TITLE
Vice Chairman

Carlos Leone Piani

TITLE
Director
AGE
44
TENURE
10.7 yrs

Marcelo Monteiro

TITLE
Director
AGE
56

Eduardo Saggioro

TITLE
Independent Director

Luis Henrique de Moura Gonçalves

TITLE
Independent Director

Jose Jorge de Vasconcelos Lima

TITLE
Director
AGE
74
TENURE
1.9 yrs

Paulo Franceschi

TITLE
Member of Fiscal Council
AGE
67

Vanderlei da Rosa

TITLE
Member of Fiscal Council
AGE
55

Saulo de Tarso Alves de Lara

TITLE
Member of Fiscal Council
AGE
64
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Equatorial Energia's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Equatorial Energia has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EQUE.Y News

Simply Wall St News

EQUE.Y Company Info

Description

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.

Details
Name: Equatorial Energia S.A.
EQUE.Y
Exchange: OTCPK
Founded: 1958
R$5,176,372,785
201,102,217
Website: http://www.equatorialenergia.com.br
Address: Equatorial Energia S.A.
Edifício Business Center Tower,
Conj. A, Bloco C, sala 702,
Brasília,
Distrito Federal, 70322-915,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BOVESPA EQTL3 Common Shares Bolsa de Valores de Sao Paulo BR BRL 07. Apr 2008
OTCPK EQUE.Y SPONSORED ADR Pink Sheets LLC US USD 19. Dec 2008
Number of employees
Current staff
Staff numbers
0
Equatorial Energia employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 00:15
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/08
Last earnings filing: 2019/05/15
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.