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Equatorial Energia (BOVESPA:EQTL3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Equatorial Energia stock research in summary

equatorialenergia.com.br

ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Equatorial Energia (Electric Utilities, Brazil) shares have lower financial characteristics compared with similar stocks. Shares of Equatorial Energia are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives) but show below-average growth (Growth Rank of 12), and are riskily financed (Safety Rank of 32), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Equatorial Energia's financial characteristics. As the company Equatorial Energia's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 12) and risky financing practices (Obermatt Safety Rank of 32), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 60% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	60
Growth Rank	12
Safety Rank	32
Combined Rank	10

Country	Brazil
Industry	Electric Utilities
Index	BOVESPA, SDG 13, SDG 4, SDG 7
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: Equatorial Energia

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	68	60	53	60
GROWTH
GROWTH	60	5	93	12
SAFETY
SAFETY	82	63	17	32
SENTIMENT
SENTIMENT	n/a	39	57	^new
360° VIEW
360° VIEW	n/a	28	63	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Equatorial Energia is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	68	60	53	60
GROWTH
GROWTH	60	5	93	12
SAFETY
SAFETY	82	63	17	32
COMBINED
COMBINED	82	32	57	10

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Equatorial Energia the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Equatorial Energia shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Equatorial Energia. Price-to-Sales (P/S) is 79, which means that the stock price compared with what market professionals expect for future sales is lower than for 79% of comparable companies, indicating a good value regarding Equatorial Energia's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 58. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 40% of all competitors have even lower dividend yields than Equatorial Energia (a Dividend Yield Rank of 40). 60% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Equatorial Energia's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	71	66	71	79
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	69	72	56	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	44	48	33	58
DIVIDEND YIELD
DIVIDEND YIELD	48	47	37	40
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	68	60	53	60

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Equatorial Energia; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 12 (better than 12% compared with alternatives), Equatorial Energia shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Equatorial Energia. Sales Growth has a rank of 41, which means that currently professionals expect the company to grow less than 59% of its competitors. The same is valid for Profit Growth, with a rank of 46, and Capital Growth with 17. In addition, Stock Returns have a below market rank of 18, which means that the stock returns have recently been below 82% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 12, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	79	17	46	41
PROFIT GROWTH
PROFIT GROWTH	53	18	68	46
CAPITAL GROWTH
CAPITAL GROWTH	n/a	32	97	17
STOCK RETURNS
STOCK RETURNS	48	49	59	18
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	60	5	93	12

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Equatorial Energia.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company Equatorial Energia has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Equatorial Energia is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Equatorial Energia and the other two below average. Refinancing is at 66, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 66% of its competitors. But Leverage is high with a rank of 17, meaning the company has an above-average debt-to-equity ratio. It has more debt than 83% of its competitors. Liquidity is also on the riskier side with a rank of 34, meaning the company generates less profit to service its debt than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), Equatorial Energia has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Equatorial Energia are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Equatorial Energia and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	26	12	17
REFINANCING
REFINANCING	87	83	51	66
LIQUIDITY
LIQUIDITY	55	65	29	34
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	82	63	17	32

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Equatorial Energia and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	60	57	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	35	82	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	65	60	^new
MARKET PULSE
MARKET PULSE	n/a	32	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	39	57	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Equatorial Energia.
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