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Engie Brasil Energia SA
(OTC:EGIEY)
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Rating:64Neutral
Price Target:
$6.00
â–²(7.33% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by solid underlying financial performance (strong margins and improved earnings) and a supportive valuation (modest P/E with a meaningful dividend). These positives are tempered by balance-sheet leverage and inconsistent cash conversion, while technical signals point to a weak trend despite near-oversold conditions. The latest earnings call added support via cash-generation/deleveraging focus and project progress, but notable operational and regulatory headwinds remain.
Positive Factors
Jirau acquisition
Adding Jirau to the portfolio expands Engie Brasil’s generation platform with a concession extending to 2047. The reported 10% real return and roughly three-year payback indicate an acquired asset designed to contribute recurring operating earnings from Q3 onward, strengthening long-term cash generation.
Negative Factors
Elevated leverage
Debt of about 2.68x equity constrains financial flexibility despite improving equity and lower debt versus 2025. Management targets leverage near 3.1x with roughly BRL 25bn debt, so refinancing, rate sensitivity and capital-allocation constraints remain material over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Jirau acquisition
Adding Jirau to the portfolio expands Engie Brasil’s generation platform with a concession extending to 2047. The reported 10% real return and roughly three-year payback indicate an acquired asset designed to contribute recurring operating earnings from Q3 onward, strengthening long-term cash generation.
Read all positive factors
Engie Brasil Energia SA (EGIEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.39B
Dividend Yield3.35%
Average Volume (3M)32.44K
Price to Earnings (P/E)8.3
Beta (1Y)0.27
Revenue Growth24.69%
EPS Growth45.17%
CountryUS
Employees1,312
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)3.70
Shares Outstanding1,416,381,500
10 Day Avg. Volume3,190
30 Day Avg. Volume32,444
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)2.93
Price to Sales (P/S)2.96
P/FCF Ratio16.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.6
Revenue Forecast (FY)$2.39B
Engie Brasil Energia SA Business Overview & Revenue Model
Company Description
Engie Brasil Energia S.A., along with its affiliated entities, is a prominent participant in Brazil's electricity market, handling the generation, distribution, and trading of electrical power. The company's operations are extensive, encompassing ...
How the Company Makes Money
Engie Brasil Energia primarily makes money by generating electricity and selling it under different contracting structures in Brazil. A major revenue stream comes from long-term power purchase agreements (PPAs) and other energy supply contracts, w...
Engie Brasil Energia SA Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call highlighted several strong, value-accretive developments—most notably the incorporation of the Jirau hydro plant, a substantial capital gain from prepayment of public asset use, double-digit adjusted EBITDA growth, improved leverage metrics, and progress on transmission projects—while signalling operational challenges including elevated curtailment (particularly wind), a notable decline in TAG profit amid an ongoing tariff review, some near-term margin normalization pressures, and safety/diversity KPI setbacks. On balance the positive financial and strategic items (Jirau, capital gains, EBITDA growth, dividend policy, renewable generation and transmission progress) are more numerous and material than the operational and regulatory headwinds discussed.Positive Updates
Incorporation of Jirau Hydroelectric Plant
Jirau was incorporated into ENGIE Brasil's portfolio (ENGIE shareholder since July 17). Concession extended until 2047; asset delivered a reported ~10% real return and an estimated ~3-year payback. Management expects positive contribution to results beginning in Q3 and onward.
Negative Updates
High Curtailment Levels
Total curtailment reached ~20% for the company. Solar curtailment ~26% (vs ~27 prior) and wind curtailment worsened from ~12% to ~17%. Curtailment remains a material operational challenge, though regulatory Measure 140 offers potential compensation for gas curtailment in the Sep 2023–Nov 2025 window.
Read all updates
Q2-2026 Updates
Positive
Negative
Incorporation of Jirau Hydroelectric Plant
Jirau was incorporated into ENGIE Brasil's portfolio (ENGIE shareholder since July 17). Concession extended until 2047; asset delivered a reported ~10% real return and an estimated ~3-year payback. Management expects positive contribution to results beginning in Q3 and onward.
Read all positive updates
Company Guidance
Management's guidance emphasized continued cash generation and deleveraging tied to the Jirau acquisition and public-asset prepayment: adjusted EBITDA rose ~16–17% quarter‑on‑quarter (≈13% on the adjusted regulatory basis), net operating revenue +14%, adjusted net income BRL 694m, and nominal profit moved from BRL 567m to ~BRL 2bn after prepaying BRL 2.2bn of a BRL 4.2bn liability (generating ~BRL 2bn capital gain, ~BRL 0.7bn taxes and ~BRL 1.3bn net); the prepayment removes ~BRL 773m/year of concession outflows (while still paying BRL 105m/year for Cana Brava/Cachoeira) and will begin to show cash benefits in Q3/Q4; interim dividends start Aug 21 with a minimum payout policy of 55% (first‑half distribution BRL 0.54, extraordinary prepayment gain not distributed); leverage is targeted around 3.1x with total debt ~BRL 25bn, average tenor >7 years and debt mix ~40% CDI/54% IPCA/11% nominal; operational metrics show total curtailment ~20% (solar ~26% vs 27% prior, wind ~17% vs 12%), uptime improving, Asa Branca’s first sector already delivering ~BRL 100m revenue, Colibri expected to add BRL 123m, RAB potential ~BRL 1.6bn (BRL 600m construction, BRL 170m in operation), TAG profit BRL 743m (vs >BRL 1bn prior) under tariff review, and Jirau delivering ~10% real return with ~3‑year payback and concession extended to 2047, starting to contribute from July 17.Engie Brasil Energia SA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.73B | 12.61B | 11.22B | 10.75B | 11.91B | 12.54B |
| Gross Profit | 6.49B | 5.85B | 6.11B | 5.91B | 5.59B | 5.91B |
| EBITDA | 9.94B | 6.75B | 8.56B | 6.86B | 6.21B | 7.00B |
| Net Income | 3.97B | 2.53B | 4.28B | 3.43B | 2.66B | 1.56B |
Balance Sheet | ||||||
| Total Assets | 59.01B | 55.29B | 50.11B | 42.22B | 38.19B | 38.12B |
| Cash, Cash Equivalents and Short-Term Investments | 6.92B | 3.37B | 4.39B | 5.33B | 2.81B | 5.70B |
| Total Debt | 31.78B | 34.21B | 24.13B | 20.68B | 17.94B | 20.26B |
| Total Liabilities | 42.91B | 41.38B | 37.83B | 32.41B | 29.75B | 30.18B |
| Stockholders Equity | 15.01B | 12.75B | 11.27B | 8.86B | 8.44B | 7.93B |
Cash Flow | ||||||
| Free Cash Flow | 3.91B | 2.25B | -2.49B | 2.02B | 1.76B | 748.88M |
| Operating Cash Flow | 4.60B | 3.97B | 4.15B | 4.59B | 3.34B | 1.99B |
| Investing Cash Flow | -3.46B | -4.30B | -5.91B | -2.04B | -1.78B | -339.05M |
| Financing Cash Flow | -319.37M | -260.50M | 459.25M | 476.35M | -4.47B | -1.03B |
Engie Brasil Energia SA Technical Analysis
Positive
5.59
Price Trends
5.77
Positive
6.17
Negative
6.09
Negative
Market Momentum
0.09
Negative
58.08
Neutral
36.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGIEY, the sentiment is Positive. The current price of 5.59 is below the 20-day moving average (MA) of 5.74, below the 50-day MA of 5.77, and below the 200-day MA of 6.09, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 36.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGIEY.
Engie Brasil Energia SA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.21B | 6.84 | 18.17% | 6.15% | 50.81% | 107.08% | |
67 Neutral | $5.89B | 10.46 | 10.70% | 4.48% | 9.54% | 294.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $8.39B | 8.31 | 29.51% | 3.35% | 24.69% | 45.17% | |
52 Neutral | $6.41B | 32.46 | 5.67% | 2.86% | 9.97% | -7.29% |
* Utilities Sector Average
EGIEY
Engie Brasil Energia SA
5.97
0.63
11.88%
TXNM
TXNM Energy
58.54
3.54
6.44%
ENIC
Enel Chile SA
4.31
0.61
16.64%
CEPU
Central Puerto SA
13.65
5.31
63.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.