# Equatorial Energia (EQTL3.SA)

Canonical: https://gigainvestors.com/s/EQTL3.SA

Analysis as of: 2026-10-16T07:35:34.545Z. Financial observations: FY2003–FY2025.

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 48.15 per share; close as of 2026-10-15.

Estimated value: low BRL 34.58 per share, central BRL 42.93 per share, high BRL 45.95 per share. Buy at or below the central value BRL 42.93 per share. Valuation as of 2026-10-16T07:35:34.545Z; scenarios are not confidence intervals.

Expected annual return: 15.3% at the stated quote. About 15.3% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.15×

- FY2017: 0.16×

- FY2018: 0.19×

- FY2019: 0.23×

- FY2020: 0.27×

- FY2021: 0.21×

- FY2022: 0.20×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: 7.8%

- Typical minus recent gross margin: 4.0 pp

- Typical gross margin (annual median): 27.6%

- Recent gross margin (lower of latest and 3-year median): 23.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 6.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.9%

- FY2017: 18.1%

- FY2018: 15.3%

- FY2019: 16.6%

- FY2020: 18.2%

- FY2021: 18.2%

- FY2022: 7.8%

- FY2023: 14.1%

- FY2024: 12.3%

- FY2025: 6.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 13B

- Net income, five-year total: BRL 12B

- Return on incremental invested capital: 84.3%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -3.9 pp

- Working capital / revenue, final three-year average: 14.4%

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

- FY2021: 1.00×

- FY2022: 1.76×

- FY2023: 1.81×

- FY2024: 1.72×

- FY2025: -1.21×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.9% vs 12.3%

- Per-share earnings: 0.81 to 1.66 (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: 2.4%

- Ordinary dilution, 5-year annual growth: 4.3%

- Market cap gain: BRL 37B

- Cumulative retained earnings: BRL -193M

- Diluted shares, 10-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 4.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.3%

- Per-share value change: BRL 0.85

- Per-share value, starting three-year median: BRL 0.81

- Per-share value, ending three-year median: BRL 1.66

- Buybacks concentrated in cheaper years (correlation): 0.90

- Average buyback yield: 0.6%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: BRL 28B

- Cumulative net income, 10 years: BRL 20B

- ROIC, first three-year median: 16.9%

- ROIC, last three-year median: 12.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.70

- FY2017: BRL 0.98

- FY2018: BRL 0.91

- FY2019: BRL 2.37

- FY2020: BRL 2.92

- FY2021: BRL 3.36

- FY2022: BRL 1.22

- FY2023: BRL 1.66

- FY2024: BRL 1.84

- FY2025: BRL 1.33

### accounting: pass

- Sloan accruals: -2.1%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.37×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.23×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: -0.3%

- FY2018: -3.6%

- FY2019: 8.2%

- FY2020: -1.1%

- FY2021: 3.9%

- FY2022: -2.3%

- FY2023: -2.2%

- FY2024: -1.2%

- FY2025: -2.1%

## Holders

## Price story

Price needs cash profits to grow 8.4% a year for ten years · sales +20.6%

Story as of 2026-10-16T10:00:05.591Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

### Sales · FY2024–2025

sales +20.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 7.8B 

- FY2017: BRL 8.8B 

- FY2018: BRL 11B 

- FY2019: BRL 19B 

- FY2020: BRL 18B 

- FY2021: BRL 24B 

- FY2022: BRL 27B 

- FY2023: BRL 41B 

- FY2024: BRL 43B 

- FY2025: BRL 52B 

### Gross margin · FY2025

gross margin 23.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 25.6% 

- FY2017: 26.9% 

- FY2018: 24.4% 

- FY2019: 30.5% 

- FY2020: 33.5% 

- FY2021: 26.5% 

- FY2022: 31.6% 

- FY2023: 29.6% 

- FY2024: 28.3% 

- FY2025: 23.6% 

## Owner memo

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

### How it makes money

Operates in utilities regulated electric; annual sales are BRL 52.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2025: revenue 52074000000; grossProfit 12279505000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EQTL3.SA: Equatorial S.A., through its subsidiaries, engages in the generation, distribution, and commercialization of energy in Brazil. The company is also involved in sanitation activities, such as water supply and sewage services; sewer connections, water meter installation, water connections, and reconnections; and construction related to works or improvements. In addition, it provides telephone service and internet telecommunications integration. The company was formerly known as Equatorial Energia S.A. and changed its name to Equatorial S.A. in August 2024. Equatorial S.A. was founded in 1958 and is headquartered in São Luís, Brazil.

### Why customers stay

Margins ranged from 23.6% to 29.6% during 2023–25; it earns 16% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2023: grossProfit / revenue = 29.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2024: grossProfit / revenue = 28.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2025: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); 10-year return on capital observations [[2016,0.16893342768204658],[2017,0.18058793287693162],[2018,0.15313451509997827],[2019,0.16625281371183095],[2020,0.18180221751351014],[2021,0.182220946940083],[2022,0.07767486672301414],[2023,0.14060824945718944],[2024,0.1231744147195109],[2025,0.06275764174694266]]; median 0.1596936644059046. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back BRL 16.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2017: growth capex 789088.539632082; upkeep 1108575911.460368; owner earnings 275342088.5396321. Growth capex / owner earnings = 0.002865847876063098.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2018: growth capex 0; upkeep 192925000; owner earnings 1181429000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2019: growth capex 0; upkeep 433369000; owner earnings 2613074400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2020: growth capex 0; upkeep 6629000; owner earnings 3790027400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2021: growth capex 19588000; upkeep 954512000; owner earnings 3683005000. Growth capex / owner earnings = 0.005318483140804859.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2022: growth capex 0; upkeep 235188000; owner earnings 2421871473.9800096. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2023: growth capex 0; upkeep 83072000; owner earnings 3766264296.258992. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2024: growth capex 0; upkeep 40688000; owner earnings 4823328856.668538. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); Dividend observations: [[2016,260467000],[2017,263917000],[2018,335455000],[2019,488370000],[2020,651476000],[2021,1220079000],[2022,1091565000],[2023,796686000],[2024,1433959000],[2025,5372846000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); FY2025: cash repurchases 16051000 BRL.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EQTL3.SA SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:34.545Z); Ten-year compound average after fade. Initial solved rate 0.10813723274904252. Price 48.15; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.31857366332269293 → FY2025 -1.609194976130894. Closing-price date 2026-10-15.

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

- 2016-10: BRL 11.37 per share

- 2016-11: BRL 10.49 per share

- 2016-12: BRL 10.87 per share

- 2017-01: BRL 11.61 per share

- 2017-02: BRL 11.89 per share

- 2017-03: BRL 11.74 per share

- 2017-04: BRL 11.48 per share

- 2017-05: BRL 10.67 per share

- 2017-06: BRL 10.82 per share

- 2017-07: BRL 11.33 per share

- 2017-08: BRL 12.21 per share

- 2017-09: BRL 12.24 per share

- 2017-10: BRL 12.19 per share

- 2017-11: BRL 12.77 per share

- 2017-12: BRL 13.11 per share

- 2018-01: BRL 13.98 per share

- 2018-02: BRL 14.30 per share

- 2018-03: BRL 14.28 per share

- 2018-04: BRL 14.21 per share

- 2018-05: BRL 12.14 per share

- 2018-06: BRL 11.34 per share

- 2018-07: BRL 12.24 per share

- 2018-08: BRL 11.39 per share

- 2018-09: BRL 11.48 per share

- 2018-10: BRL 13.58 per share

- 2018-11: BRL 14.51 per share

- 2018-12: BRL 14.89 per share

- 2019-01: BRL 17.61 per share

- 2019-02: BRL 16.41 per share

- 2019-03: BRL 15.98 per share

- 2019-04: BRL 16.40 per share

- 2019-05: BRL 17.21 per share

- 2019-06: BRL 18.34 per share

- 2019-07: BRL 18.88 per share

- 2019-08: BRL 19.13 per share

- 2019-09: BRL 20.03 per share

- 2019-10: BRL 20.35 per share

- 2019-11: BRL 20.62 per share

- 2019-12: BRL 22.76 per share

- 2020-01: BRL 23.81 per share

- 2020-02: BRL 24.63 per share

- 2020-03: BRL 17.58 per share

- 2020-04: BRL 18.31 per share

- 2020-05: BRL 20.03 per share

- 2020-06: BRL 23.19 per share

- 2020-07: BRL 25.50 per share

- 2020-08: BRL 23.17 per share

- 2020-09: BRL 21.16 per share

- 2020-10: BRL 19.91 per share

- 2020-11: BRL 21.76 per share

- 2020-12: BRL 23.13 per share

- 2021-01: BRL 22.49 per share

- 2021-02: BRL 20.08 per share

- 2021-03: BRL 24.77 per share

- 2021-04: BRL 25.01 per share

- 2021-05: BRL 24.70 per share

- 2021-06: BRL 24.77 per share

- 2021-07: BRL 24.17 per share

- 2021-08: BRL 25.31 per share

- 2021-09: BRL 25.32 per share

- 2021-10: BRL 22.85 per share

- 2021-11: BRL 22.54 per share

- 2021-12: BRL 22.58 per share

- 2022-01: BRL 22.93 per share

- 2022-02: BRL 25.54 per share

- 2022-03: BRL 27.18 per share

- 2022-04: BRL 25.61 per share

- 2022-05: BRL 23.75 per share

- 2022-06: BRL 22.81 per share

- 2022-07: BRL 24.78 per share

- 2022-08: BRL 24.15 per share

- 2022-09: BRL 26.87 per share

- 2022-10: BRL 29.99 per share

- 2022-11: BRL 27.52 per share

- 2022-12: BRL 26.99 per share

- 2023-01: BRL 27.99 per share

- 2023-02: BRL 25.40 per share

- 2023-03: BRL 26.93 per share

- 2023-04: BRL 27.31 per share

- 2023-05: BRL 28.15 per share

- 2023-06: BRL 32.15 per share

- 2023-07: BRL 33.54 per share

- 2023-08: BRL 31.66 per share

- 2023-09: BRL 32.06 per share

- 2023-10: BRL 31.60 per share

- 2023-11: BRL 34.06 per share

- 2023-12: BRL 35.72 per share

- 2024-01: BRL 35.43 per share

- 2024-02: BRL 34.18 per share

- 2024-03: BRL 32.55 per share

- 2024-04: BRL 29.52 per share

- 2024-05: BRL 29.23 per share

- 2024-06: BRL 30.69 per share

- 2024-07: BRL 32.64 per share

- 2024-08: BRL 34.20 per share

- 2024-09: BRL 32.50 per share

- 2024-10: BRL 32.12 per share

- 2024-11: BRL 30.61 per share

- 2024-12: BRL 27.40 per share

- 2025-01: BRL 30.15 per share

- 2025-02: BRL 30.06 per share

- 2025-03: BRL 32.00 per share

- 2025-04: BRL 36.81 per share

- 2025-05: BRL 36.59 per share

- 2025-06: BRL 35.96 per share

- 2025-07: BRL 34.07 per share

- 2025-08: BRL 36.57 per share

- 2025-09: BRL 36.95 per share

- 2025-10: BRL 36.65 per share

- 2025-11: BRL 39.76 per share

- 2025-12: BRL 38.50 per share

- 2026-01: BRL 40.92 per share

- 2026-02: BRL 42.11 per share

- 2026-03: BRL 40.77 per share

- 2026-04: BRL 42.32 per share

- 2026-05: BRL 38.55 per share

- 2026-06: BRL 38.94 per share

- 2026-07: BRL 38.66 per share

- 2026-08: BRL 36.67 per share

- 2026-09: BRL 40.65 per share

- 2026-10: BRL 49.20 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 5.36 per share, central BRL 6.09 per share, high BRL 6.36 per share

- FY2017: low BRL 5.89 per share, central BRL 6.47 per share, high BRL 6.68 per share

- FY2018: low BRL 8.18 per share, central BRL 9.12 per share, high BRL 9.48 per share

- FY2019: low BRL 11.30 per share, central BRL 13.07 per share, high BRL 13.70 per share

- FY2020: low BRL 20.73 per share, central BRL 24.77 per share, high BRL 26.23 per share

- FY2021: low BRL 30.53 per share, central BRL 36.93 per share, high BRL 39.24 per share

- FY2022: low BRL 28.82 per share, central BRL 36.00 per share, high BRL 38.59 per share

- FY2023: low BRL 39.46 per share, central BRL 49.23 per share, high BRL 52.75 per share

- FY2024: low BRL 28.69 per share, central BRL 35.45 per share, high BRL 37.89 per share

- FY2025: low BRL 34.95 per share, central BRL 43.11 per share, high BRL 46.05 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

## 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.