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Equatorial Energia SA (EQUEY) AI Stock Analysis
Equatorial Energia SA
(Other OTC:EQUEY)
Equatorial Energia's score is primarily weighed down by severe profitability declines, escalating debt levels, and persistent negative free cash flow. While the company boasts strong revenue growth and a high dividend yield, the recent 80.1% drop in net income and distinct bearish technical trends highlight substantial near-term risks.
Equatorial Energia SA (EQUEY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $7.72B
- Dividend Yield
- 6.86%
- Average Volume (3M)
- 5,562
- Price to Earnings (P/E)
- 43.2
- Beta (1Y)
- 0.38
- Revenue Growth
- 18.24%
- EPS Growth
- -71.57%
- Country
- US
- Employees
- 11,571
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Electric
Equatorial Energia SA Business Overview & Revenue Model
Company Description
Equatorial SA is a holding company, which invests in the capital stock of other companies, consortiums, and undertakings that operate in the electricity sector or in similar activities. It operates through the following segments: Energy Distribution,...
How the Company Makes Money
Equatorial Energia makes money mainly through regulated electricity distribution. In Brazil, distribution companies are paid for providing access to and operating the local power grid (the “wires” business), rather than for generating electricity. Th...
Equatorial Energia SA Earnings Call Summary
The call presented a mixed picture: strong operational performance in the distribution businesses (market growth, margin expansion, improved service quality and lower compensation payments) and progress on strategic initiatives and liability relief. These positives were offset by material financial headwinds — an 80.1% drop in adjusted net income (ex-clients), higher leverage (net debt/EBITDA up 0.4x to 3.1x), increased financial expenses from higher interest rates and acquisition-related debt, and weakness in the renewables segment (adjusted EBITDA down 22.6%). Management emphasized regulatory milestones, tariff review timing and actions to improve collections and capital structure, but near-term profitability is constrained by financing costs and generation curtailments.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that near‑term priorities are integrating the Copasa acquisition and preserving financial flexibility while funding quality‑focused investments: the Copasa stake required a 5.6bn payment funded from BRL7.6bn raised this quarter (BRL5.1bn used at an average cost of CDI+0.8%), group CDI‑linked debt sits at CDI+0.57 with average maturities ~5.9 years (5.6 yrs including Copasa), net‑debt/EBITDA is 3.1x (+0.4x QoQ) vs. a 3.3x covenant and a target capital structure of 3–3.5x (3.0x in high‑rate scenarios); they expect to complete settlement of a BRL2.8bn liability program (BRL911m added, a 75% interest/penalty discount ≈ $355m already reflected, and up to 60% of the remainder may be settled with discounted government receivables) in H2, will keep strict cost discipline while investing (Q2 capex BRL2.6bn, -4%), and plan to rely on tariff reviews (RS and Amapá in 2026; Pará 2027; Goiás/Piauí thereafter) to help lift EBITDA — current operating metrics cited include injected energy +4.7%, wire‑B market +4.2% (5% adjusted for billing shift), collection 97.32%, expected credit losses 1.26%, distribution gross margin +10.4% and distribution adjusted EBITDA +8%, while group adjusted EBITDA for the quarter was $3m and adjusted net income ex‑one‑offs fell 80.1%.
Equatorial Energia SA Financial Statement Overview
Summary
Despite steady top-line growth and expanding assets, the company suffers from severely compressed profit margins (1.79%), high debt leverage (2.25 D/E), and deep negative free cash flows stemming from capital-intensive operations.
Income Statement
45NeutralBalance Sheet
38NegativeCash Flow
35Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.29B | 49.25B | 43.17B | 40.99B | 26.22B | 23.61B |
| Gross Profit | 12.00B | 10.79B | 10.86B | 10.23B | 7.65B | 6.27B |
| EBITDA | 8.60B | 8.33B | 11.00B | 9.72B | 7.17B | 6.21B |
| Net Income | 950.48M | 1.65B | 2.81B | 2.08B | 1.37B | 3.69B |
Balance Sheet | ||||||
| Total Assets | 118.94B | 109.55B | 116.41B | 103.64B | 90.62B | 61.71B |
| Cash, Cash Equivalents and Short-Term Investments | 8.96B | 10.48B | 13.04B | 12.24B | 7.88B | 10.37B |
| Total Debt | 65.14B | 54.54B | 55.93B | 46.56B | 41.30B | 25.46B |
| Total Liabilities | 90.23B | 81.24B | 86.52B | 78.36B | 72.05B | 47.11B |
| Stockholders Equity | 26.13B | 25.74B | 26.11B | 21.09B | 16.61B | 12.76B |
Cash Flow | ||||||
| Free Cash Flow | -2.86B | -4.04B | 4.21B | -6.01B | 3.23B | 330.16M |
| Operating Cash Flow | 2.96B | 3.90B | 4.25B | 3.14B | 3.47B | 1.30B |
| Investing Cash Flow | -7.73B | -2.81B | -14.19B | -7.49B | -8.74B | -4.74B |
| Financing Cash Flow | 7.73B | -1.72B | 8.63B | 5.80B | 5.44B | 4.21B |
Equatorial Energia SA Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQUEY, the sentiment is Negative. The current price of 6.15 is below the 20-day moving average (MA) of 8.15, below the 50-day MA of 7.97, and below the 200-day MA of 7.88, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQUEY.
Equatorial Energia SA Peers Comparison
Overall Rating
OGE76Outperform
CIG73Outperform
ELPC71Outperform
EDN66Neutral
ENIC64Neutral- EQUEY45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| OGE | 76Outperform | $10.15B | 18.96 | 11.14% | 3.37% | 2.38% | 6.90% |
| CIG | 73Outperform | $6.22B | 10.29 | 15.93% | 10.47% | 12.93% | -24.59% |
| ELPC | 71Outperform | $7.67B | 14.03 | 12.91% | 4.88% | 26.97% | 11.70% |
| EDN | 66Neutral | $737.15M | 4.42 | 10.46% | ― | 1.93% | -35.13% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| ENIC | 64Neutral | $6.00B | 10.55 | 10.78% | 4.39% | 16.18% | 742.80% |
| EQUEY | 45Neutral | $7.25B | 43.21 | 3.61% | 6.86% | 18.24% | -71.57% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EQUEY | Equatorial Energia S.A. Sponsored Adr | 6.15 | -0.73 | -10.64% | |
| CIG | Companhia Energetica Minas Gerais | 1.82 | -0.17 | -8.31% | |
| EDN | Edenor SA Class B | 14.15 | -18.54 | -56.71% | |
| OGE | OGE Energy Corp | 50.82 | 8.10 | 18.97% | |
| ENIC | Enel Chile | 4.29 | 0.60 | 16.42% | |
| ELPC | Companhia Paranaense de Energia Sponsored ADR | 10.67 | 1.23 | 13.05% |
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.
Date of analysis: Oct 28, 2026