# Engie Brasil Energia (EGIE3.SA)

Canonical: https://gigainvestors.com/s/EGIE3.SA

Analysis as of: 2026-10-16T07:36:10.448Z. Financial observations: FY2001–FY2026.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 31.36 per share; close as of 2026-10-15.

Estimated value: low BRL 14.61 per share, central BRL 16.04 per share, high BRL 16.94 per share. Buy at or below the central value BRL 16.04 per share. Valuation as of 2026-10-16T07:36:10.448Z; scenarios are not confidence intervals.

Expected annual return: 9.0% at the stated quote. About 9.0% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.41×

- FY2018: 0.42×

- FY2019: 0.43×

- FY2020: 0.42×

- FY2021: 0.44×

- FY2022: 0.44×

- FY2023: 0.51×

- FY2024: 0.50×

- FY2025: 0.43×

- LTM to Jun 2026: 0.44×

### moat: pass

- ROIC, median of available years: 18.6%

- ROIC, second-lowest year: 13.4%

- Typical minus recent gross margin: -0.9 pp

- Typical gross margin (annual median): 45.5%

- Recent gross margin (lower of latest and 3-year median): 46.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 15.9%

- ROIC including acquisitions, ten-year median: 8.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.0%

- FY2017: 19.2%

- FY2018: 21.9%

- FY2019: 18.1%

- FY2020: 20.4%

- FY2021: 21.5%

- FY2022: 18.0%

- FY2023: 17.7%

- FY2024: 13.4%

- FY2025: 9.9%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 7.4B

- Net income, five-year total: BRL 15B

- Return on incremental invested capital: 15.2%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 2.0 pp

- Working capital / revenue, final three-year average: 12.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.78×

- FY2023: 0.52×

- FY2024: -0.14×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 21.9% vs 13.4%

- Per-share earnings: 1.90 to 4.20 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.4%

- Ordinary dilution, 5-year annual growth: 7.0%

- Market cap gain: BRL 20B

- Cumulative retained earnings: BRL 2.6B

- Diluted shares, 10-year annual growth: 3.4%

- Diluted shares, 5-year annual growth: 7.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.5%

- Per-share value change: BRL 2.31

- Per-share value, starting three-year median: BRL 1.90

- Per-share value, ending three-year median: BRL 4.20

- Average buyback yield: 3.6%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 5.3B

- Cumulative net income, 10 years: BRL 25B

- ROIC, first three-year median: 21.9%

- ROIC, last three-year median: 13.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 1.90

- FY2017: BRL 2.46

- FY2018: BRL 2.84

- FY2019: BRL 2.83

- FY2020: BRL 3.43

- FY2021: BRL 1.92

- FY2022: BRL 3.26

- FY2023: BRL 4.20

- FY2024: BRL 5.24

- FY2025: BRL 2.26

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 1.46×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.8%

- FY2017: 8.5%

- FY2018: -3.5%

- FY2019: -4.4%

- FY2020: 4.1%

- FY2021: -1.1%

- FY2022: -1.8%

- FY2023: -2.7%

- FY2024: 0.2%

- FY2025: -2.7%

## Holders

## Price story

Price needs cash profits to grow 15% a year for ten years · sales +6.4%

Story as of 2026-10-16T10:00:07.011Z; price observation 2026-10-15.

Price needs cash profits to grow 15% a year for ten years

### Sales · FY2025–2026

sales +6.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 7.0B 

- FY2018: BRL 8.8B 

- FY2019: BRL 9.8B 

- FY2020: BRL 12B 

- FY2021: BRL 13B 

- FY2022: BRL 12B 

- FY2023: BRL 11B 

- FY2024: BRL 11B 

- FY2025: BRL 13B 

- FY2026: BRL 14B 

### Gross margin · FY2025

gross margin 46.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 42.5% 

- FY2017: 42.9% 

- FY2018: 44.6% 

- FY2019: 42.3% 

- FY2020: 44.6% 

- FY2021: 47.1% 

- FY2022: 46.9% 

- FY2023: 55.0% 

- FY2024: 54.4% 

- FY2025: 46.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities renewable; annual sales are BRL 12.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2025: revenue 12860075000; grossProfit 5968325000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 46.4% to 55% during 2023–25; it earns 18.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2023: grossProfit / revenue = 55%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2024: grossProfit / revenue = 54.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2025: grossProfit / revenue = 46.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); 10-year return on capital observations [[2016,0.23008449826594574],[2017,0.19179884347119708],[2018,0.21898309605232563],[2019,0.1805246910629292],[2020,0.20411259934657439],[2021,0.21508386516984268],[2022,0.18009835675164265],[2023,0.17692951820421687],[2024,0.1337588097379853],[2025,0.09855686596507846]]; median 0.18616176726706313. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 13.9% of cash earnings on expansion; earns 15.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2016: growth capex 0; upkeep 1175583000; owner earnings 1001966000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2017: growth capex 908572858.5097814; upkeep 2047775141.4902186; owner earnings 604583858.5097814. Growth capex / owner earnings = 1.5028070063750831.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2018: growth capex 2645342000; upkeep 660172000; owner earnings 2314361000. Growth capex / owner earnings = 1.1430118291830877.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2019: growth capex 319466000; upkeep 863343000; owner earnings 2283063600. Growth capex / owner earnings = 0.13992864675342379.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2020: growth capex 434045000; upkeep 914975000; owner earnings 2772296600. Growth capex / owner earnings = 0.15656513808803862.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2021: growth capex 198697000; upkeep 1042417000; owner earnings 1538448200. Growth capex / owner earnings = 0.12915416976665187.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2022: growth capex 0; upkeep 1578786000; owner earnings 2074093000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2023: growth capex 0; upkeep 2565799000; owner earnings 1788015000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); FY2025: growth capex 360077000; upkeep 1392171000; owner earnings 2582841000. Growth capex / owner earnings = 0.13941121424044298.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); Incremental return on capital 0.1520127307832972, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); Dividend observations: [[2016,1164012000],[2017,838621000],[2018,1989966000],[2019,2260825000],[2020,1240918000],[2021,2792602000],[2022,2286031000],[2023,2379596000],[2024,1133999000],[2025,2741349000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 85.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EGIE3.SA SharesStats.PercentInsiders = 85.199 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15% yearly over ten years; actual growth was 2.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:10.448Z); Ten-year compound average after fade. Initial solved rate 0.2034468205343295. Price 31.36; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.7396572040186065 → FY2025 2.261090530778812. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-11: BRL 20.49 per share

- 2016-12: BRL 20.00 per share

- 2017-01: BRL 20.46 per share

- 2017-02: BRL 21.13 per share

- 2017-03: BRL 20.21 per share

- 2017-04: BRL 19.43 per share

- 2017-05: BRL 18.95 per share

- 2017-06: BRL 19.38 per share

- 2017-07: BRL 20.00 per share

- 2017-08: BRL 20.63 per share

- 2017-09: BRL 20.71 per share

- 2017-10: BRL 20.46 per share

- 2017-11: BRL 20.25 per share

- 2017-12: BRL 20.29 per share

- 2018-01: BRL 20.54 per share

- 2018-02: BRL 22.37 per share

- 2018-03: BRL 22.38 per share

- 2018-04: BRL 21.14 per share

- 2018-05: BRL 21.14 per share

- 2018-06: BRL 19.56 per share

- 2018-07: BRL 21.37 per share

- 2018-08: BRL 21.09 per share

- 2018-09: BRL 20.27 per share

- 2018-10: BRL 22.74 per share

- 2018-11: BRL 24.58 per share

- 2018-12: BRL 23.59 per share

- 2019-01: BRL 29.89 per share

- 2019-02: BRL 29.40 per share

- 2019-03: BRL 30.51 per share

- 2019-04: BRL 31.78 per share

- 2019-05: BRL 33.09 per share

- 2019-06: BRL 31.05 per share

- 2019-07: BRL 34.48 per share

- 2019-08: BRL 32.13 per share

- 2019-09: BRL 31.71 per share

- 2019-10: BRL 32.33 per share

- 2019-11: BRL 33.41 per share

- 2019-12: BRL 36.29 per share

- 2020-01: BRL 37.18 per share

- 2020-02: BRL 33.95 per share

- 2020-03: BRL 27.80 per share

- 2020-04: BRL 27.94 per share

- 2020-05: BRL 30.29 per share

- 2020-06: BRL 30.06 per share

- 2020-07: BRL 32.98 per share

- 2020-08: BRL 30.45 per share

- 2020-09: BRL 28.82 per share

- 2020-10: BRL 28.49 per share

- 2020-11: BRL 30.24 per share

- 2020-12: BRL 31.39 per share

- 2021-01: BRL 30.69 per share

- 2021-02: BRL 29.39 per share

- 2021-03: BRL 29.88 per share

- 2021-04: BRL 29.05 per share

- 2021-05: BRL 28.42 per share

- 2021-06: BRL 27.96 per share

- 2021-07: BRL 27.09 per share

- 2021-08: BRL 26.82 per share

- 2021-09: BRL 26.76 per share

- 2021-10: BRL 27.79 per share

- 2021-11: BRL 27.52 per share

- 2021-12: BRL 27.44 per share

- 2022-01: BRL 29.07 per share

- 2022-02: BRL 28.48 per share

- 2022-03: BRL 30.89 per share

- 2022-04: BRL 29.93 per share

- 2022-05: BRL 31.36 per share

- 2022-06: BRL 29.50 per share

- 2022-07: BRL 31.59 per share

- 2022-08: BRL 28.93 per share

- 2022-09: BRL 27.51 per share

- 2022-10: BRL 28.73 per share

- 2022-11: BRL 28.21 per share

- 2022-12: BRL 27.06 per share

- 2023-01: BRL 28.11 per share

- 2023-02: BRL 28.06 per share

- 2023-03: BRL 28.69 per share

- 2023-04: BRL 29.45 per share

- 2023-05: BRL 30.02 per share

- 2023-06: BRL 32.64 per share

- 2023-07: BRL 31.46 per share

- 2023-08: BRL 30.09 per share

- 2023-09: BRL 29.59 per share

- 2023-10: BRL 28.07 per share

- 2023-11: BRL 31.07 per share

- 2023-12: BRL 32.38 per share

- 2024-01: BRL 28.99 per share

- 2024-02: BRL 30.01 per share

- 2024-03: BRL 28.76 per share

- 2024-04: BRL 29.21 per share

- 2024-05: BRL 30.96 per share

- 2024-06: BRL 31.64 per share

- 2024-07: BRL 31.59 per share

- 2024-08: BRL 32.26 per share

- 2024-09: BRL 30.32 per share

- 2024-10: BRL 29.62 per share

- 2024-11: BRL 27.14 per share

- 2024-12: BRL 25.36 per share

- 2025-01: BRL 26.29 per share

- 2025-02: BRL 26.55 per share

- 2025-03: BRL 27.57 per share

- 2025-04: BRL 29.69 per share

- 2025-05: BRL 29.33 per share

- 2025-06: BRL 32.44 per share

- 2025-07: BRL 28.52 per share

- 2025-08: BRL 28.53 per share

- 2025-09: BRL 29.07 per share

- 2025-10: BRL 28.57 per share

- 2025-11: BRL 30.64 per share

- 2025-12: BRL 31.37 per share

- 2026-01: BRL 32.77 per share

- 2026-02: BRL 33.68 per share

- 2026-03: BRL 32.83 per share

- 2026-04: BRL 35.31 per share

- 2026-05: BRL 33.10 per share

- 2026-06: BRL 34.83 per share

- 2026-07: BRL 29.80 per share

- 2026-08: BRL 29.38 per share

- 2026-09: BRL 29.46 per share

- 2026-10: BRL 31.32 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 13.94 per share, central BRL 14.75 per share, high BRL 15.68 per share

- FY2017: low BRL 13.80 per share, central BRL 14.57 per share, high BRL 15.45 per share

- FY2018: low BRL 20.02 per share, central BRL 24.78 per share, high BRL 26.55 per share

- FY2019: low BRL 23.32 per share, central BRL 27.65 per share, high BRL 29.46 per share

- FY2020: low BRL 30.37 per share, central BRL 37.01 per share, high BRL 39.54 per share

- FY2021: low BRL 28.30 per share, central BRL 29.72 per share, high BRL 31.37 per share

- FY2022: low BRL 23.83 per share, central BRL 26.29 per share, high BRL 28.04 per share

- FY2023: low BRL 20.44 per share, central BRL 21.39 per share, high BRL 22.47 per share

- FY2024: low BRL 18.82 per share, central BRL 19.76 per share, high BRL 20.84 per share

- FY2025: low BRL 14.67 per share, central BRL 16.33 per share, high BRL 17.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:53.501Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations