Equatorial Energia S.A.
Equatorial Energia S.A. Fundamental Analysis
Equatorial Energia S.A. (EQUEY) shows weak financial fundamentals with a PE ratio of 30.23, profit margin of 3.26%, and ROE of 6.13%. The company generates $51.3B in annual revenue with moderate year-over-year growth of 5.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EQUEY's fundamental strength across five key dimensions:
Efficiency Score
WeakEQUEY struggles to generate sufficient returns from assets.
Valuation Score
ModerateEQUEY shows balanced valuation metrics.
Growth Score
ExcellentEQUEY delivers strong and consistent growth momentum.
Financial Health Score
ModerateEQUEY shows balanced financial health with some risks.
Profitability Score
WeakEQUEY struggles to sustain strong margins.
Key Financial Metrics
Is EQUEY Expensive or Cheap?
P/E Ratio
EQUEY trades at 30.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EQUEY's PEG of -0.11 indicates potential undervaluation.
Price to Book
The market values Equatorial Energia S.A. at 1.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.21 times EBITDA. This is generally considered low.
How Well Does EQUEY Make Money?
Net Profit Margin
For every $100 in sales, Equatorial Energia S.A. keeps $3.26 as profit after all expenses.
Operating Margin
Core operations generate 22.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.13 in profit for every $100 of shareholder equity.
ROA
Equatorial Energia S.A. generates $1.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equatorial Energia S.A. generates limited operating cash flow of $3.99B, signaling weaker underlying cash strength.
Free Cash Flow
Equatorial Energia S.A. generates weak or negative free cash flow of $101.37M, restricting financial flexibility.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
EQUEY converts 0.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How EQUEY Stacks Against Its Sector Peers
| Metric | EQUEY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.23 | 20.28 | Worse (Expensive) |
| ROE | 6.13% | 920.00% | Weak |
| Net Margin | 3.26% | 736.00% | Weak |
| Debt/Equity | 2.12 | 1.49 | Weak (High Leverage) |
| Current Ratio | 1.49 | 1.44 | Neutral |
| ROA | 1.53% | -6170.00% (disorted) | Weak |
EQUEY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equatorial Energia S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.26%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-5.60%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
629.48%
Industry Style: Defensive, Dividend, Income
High Growth