# Isa Energia Brasil (ISAE3.SA)

Canonical: https://gigainvestors.com/s/ISAE3.SA

Analysis as of: 2026-10-16T07:37:48.860Z. Financial observations: FY2009–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 34.32 per share; close as of 2026-10-15.

Estimated value: low BRL 51.78 per share, central BRL 64.32 per share, high BRL 69.36 per share. Buy at or below the central value BRL 64.32 per share. Valuation as of 2026-10-16T07:37:48.860Z; scenarios are not confidence intervals.

Expected annual return: 29.1% at the stated quote. About 29.1% 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: 0.28×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.78×

- FY2018: 0.77×

- FY2019: 0.70×

- FY2020: 1.15×

- FY2021: 0.75×

- FY2022: 0.61×

- FY2023: 0.56×

- FY2024: 0.64×

- FY2025: 0.44×

- LTM to Jun 2026: 0.46×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 30.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.6%

- ROIC, second-lowest year: 11.9%

- Typical minus recent gross margin: 30.9 pp

- Typical gross margin (annual median): 70.2%

- Recent gross margin (lower of latest and 3-year median): 39.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.4%

- ROIC including acquisitions, ten-year median: 13.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 46.8%

- FY2017: 11.9%

- FY2018: 15.0%

- FY2019: 15.3%

- FY2020: 21.5%

- FY2021: 16.1%

- FY2022: 12.6%

- FY2023: 12.7%

- FY2024: 14.3%

- FY2025: 9.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 14B

- Net income, five-year total: BRL 14B

- Return on incremental invested capital: 73.3%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -3.3 pp

- Working capital / revenue, final three-year average: 46.6%

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

- FY2021: 1.00×

- FY2022: 0.99×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- 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: 15.0% vs 12.7%

- Per-share earnings: 2.07 to 4.31 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: BRL 13B

- Cumulative retained earnings: BRL 12B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.6%

- Per-share value change: BRL 2.24

- Per-share value, starting three-year median: BRL 2.07

- Per-share value, ending three-year median: BRL 4.31

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 1.8%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: BRL 28B

- Cumulative net income, 10 years: BRL 27B

- ROIC, first three-year median: 15.0%

- ROIC, last three-year median: 12.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 7.49

- FY2017: BRL 2.07

- FY2018: BRL 1.14

- FY2019: BRL 2.67

- FY2020: BRL 5.10

- FY2021: BRL 4.58

- FY2022: BRL 3.43

- FY2023: BRL 4.31

- FY2024: BRL 5.31

- FY2025: BRL 3.72

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 7.8%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 31.8%

- FY2017: 4.6%

- FY2018: 3.1%

- FY2019: 1.9%

- FY2020: 8.1%

- FY2021: 7.3%

- FY2022: 5.2%

- FY2023: 6.3%

- FY2024: 8.5%

- FY2025: 7.8%

## Holders

## Price story

Price needs cash profits to shrink 4.4% a year for ten years · sales +13.4%

Story as of 2026-10-16T10:00:09.479Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.4% a year for ten years

### Sales · FY2025–2026

sales +13.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: BRL 2.7B 

- FY2018: BRL 3.2B 

- FY2019: BRL 3.3B 

- FY2020: BRL 3.7B 

- FY2021: BRL 5.5B 

- FY2022: BRL 5.5B 

- FY2023: BRL 6.2B 

- FY2024: BRL 8.0B 

- FY2025: BRL 9.4B 

- FY2026: BRL 11B 

### Gross margin · FY2025

gross margin 39.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 93.6% 

- FY2017: 78.0% 

- FY2018: 77.2% 

- FY2019: 71.2% 

- FY2020: 69.3% 

- FY2021: 74.5% 

- FY2022: 60.2% 

- FY2023: 59.3% 

- FY2024: 46.9% 

- FY2025: 39.3% 

## Owner memo

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

### How it makes money

Operates in utilities independent power producers; annual sales are BRL 9.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2025: revenue 9411153000; grossProfit 3703115000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 39.3% to 59.3% during 2023–25; it earns 14.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2023: grossProfit / revenue = 59.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2024: grossProfit / revenue = 46.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2025: grossProfit / revenue = 39.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); 10-year return on capital observations [[2016,0.46783179634160027],[2017,0.1194926548575471],[2018,0.15019802241358132],[2019,0.15320754913068346],[2020,0.21539324290971915],[2021,0.16081455719916551],[2022,0.12615407682163668],[2023,0.12693493613837706],[2024,0.14262997480539324],[2025,0.09476654380501898]]; median 0.14641399860948728. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.4% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2016: growth capex 0; upkeep 11488000; owner earnings 4932375000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2017: growth capex 0; upkeep 5592000; owner earnings 1372037000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2018: growth capex 0; upkeep 7785000; owner earnings 1883097000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2019: growth capex 1442000; upkeep 19963000; owner earnings 1762631000. Growth capex / owner earnings = 0.0008180952224260211.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2020: growth capex 0; upkeep 13035000; owner earnings 3368259000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2021: growth capex 0; upkeep 14860000; owner earnings 3015157800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2022: growth capex 0; upkeep 34118000; owner earnings 2244231400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2023: growth capex 16607573.466341242; upkeep 29361426.533658758; owner earnings 2830970573.466341. Growth capex / owner earnings = 0.005866388588421935.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2024: growth capex 6045000; upkeep 37357000; owner earnings 3490914200. Growth capex / owner earnings = 0.0017316380906755027.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); FY2025: growth capex 9757000; upkeep 34692000; owner earnings 2436771800. Growth capex / owner earnings = 0.004004068005054885.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); Dividend observations: [[2016,109710000],[2017,636118000],[2018,2064258000],[2019,900714000],[2020,747369000],[2021,2656470000],[2022,97726000],[2023,597757000],[2024,1239070000],[2025,1701314000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 99.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ISAE3.SA SharesStats.PercentInsiders = 99.17200000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.4% yearly over ten years; actual growth was 16.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:48.860Z); Ten-year compound average after fade. Initial solved rate -0.074575116737638. Price 34.32; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7765142825699496 → FY2025 3.69833595721731. Closing-price date 2026-10-15.

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

- 2016-11: BRL 15.00 per share

- 2016-12: BRL 14.75 per share

- 2017-01: BRL 14.50 per share

- 2017-02: BRL 15.00 per share

- 2017-03: BRL 14.40 per share

- 2017-04: BRL 14.27 per share

- 2017-05: BRL 14.00 per share

- 2017-06: BRL 14.63 per share

- 2017-07: BRL 15.00 per share

- 2017-08: BRL 14.75 per share

- 2017-09: BRL 15.00 per share

- 2017-10: BRL 14.76 per share

- 2017-11: BRL 13.90 per share

- 2017-12: BRL 14.69 per share

- 2018-01: BRL 14.75 per share

- 2018-02: BRL 14.85 per share

- 2018-03: BRL 14.96 per share

- 2018-04: BRL 15.44 per share

- 2018-05: BRL 14.87 per share

- 2018-06: BRL 14.49 per share

- 2018-07: BRL 14.38 per share

- 2018-08: BRL 13.76 per share

- 2018-09: BRL 13.95 per share

- 2018-10: BRL 15.88 per share

- 2018-11: BRL 17.13 per share

- 2018-12: BRL 17.22 per share

- 2019-01: BRL 20.69 per share

- 2019-02: BRL 20.73 per share

- 2019-03: BRL 20.85 per share

- 2019-04: BRL 23.10 per share

- 2019-05: BRL 24.45 per share

- 2019-06: BRL 27.59 per share

- 2019-07: BRL 27.00 per share

- 2019-08: BRL 26.33 per share

- 2019-09: BRL 27.46 per share

- 2019-10: BRL 26.45 per share

- 2019-11: BRL 24.96 per share

- 2019-12: BRL 27.52 per share

- 2020-01: BRL 27.50 per share

- 2020-02: BRL 25.80 per share

- 2020-03: BRL 22.74 per share

- 2020-04: BRL 23.01 per share

- 2020-05: BRL 25.24 per share

- 2020-06: BRL 25.25 per share

- 2020-07: BRL 26.99 per share

- 2020-08: BRL 26.43 per share

- 2020-09: BRL 26.00 per share

- 2020-10: BRL 25.78 per share

- 2020-11: BRL 27.30 per share

- 2020-12: BRL 29.35 per share

- 2021-01: BRL 29.83 per share

- 2021-02: BRL 29.55 per share

- 2021-03: BRL 30.11 per share

- 2021-04: BRL 29.45 per share

- 2021-05: BRL 30.86 per share

- 2021-06: BRL 31.35 per share

- 2021-07: BRL 30.60 per share

- 2021-08: BRL 32.10 per share

- 2021-09: BRL 31.82 per share

- 2021-10: BRL 32.42 per share

- 2021-11: BRL 31.19 per share

- 2021-12: BRL 30.41 per share

- 2022-01: BRL 31.20 per share

- 2022-02: BRL 32.99 per share

- 2022-03: BRL 34.30 per share

- 2022-04: BRL 33.78 per share

- 2022-05: BRL 31.91 per share

- 2022-06: BRL 30.88 per share

- 2022-07: BRL 29.45 per share

- 2022-08: BRL 32.15 per share

- 2022-09: BRL 30.54 per share

- 2022-10: BRL 29.93 per share

- 2022-11: BRL 29.36 per share

- 2022-12: BRL 28.95 per share

- 2023-01: BRL 28.97 per share

- 2023-02: BRL 28.80 per share

- 2023-03: BRL 27.65 per share

- 2023-04: BRL 29.28 per share

- 2023-05: BRL 29.91 per share

- 2023-06: BRL 32.10 per share

- 2023-07: BRL 33.14 per share

- 2023-08: BRL 32.12 per share

- 2023-09: BRL 31.00 per share

- 2023-10: BRL 29.25 per share

- 2023-11: BRL 31.60 per share

- 2023-12: BRL 35.45 per share

- 2024-01: BRL 33.13 per share

- 2024-02: BRL 32.85 per share

- 2024-03: BRL 33.06 per share

- 2024-04: BRL 32.75 per share

- 2024-05: BRL 33.80 per share

- 2024-06: BRL 34.09 per share

- 2024-07: BRL 31.99 per share

- 2024-08: BRL 32.26 per share

- 2024-09: BRL 31.20 per share

- 2024-10: BRL 30.90 per share

- 2024-11: BRL 31.58 per share

- 2024-12: BRL 30.49 per share

- 2025-01: BRL 32.39 per share

- 2025-02: BRL 31.65 per share

- 2025-03: BRL 31.52 per share

- 2025-04: BRL 32.04 per share

- 2025-05: BRL 31.95 per share

- 2025-06: BRL 30.31 per share

- 2025-07: BRL 30.54 per share

- 2025-08: BRL 30.51 per share

- 2025-09: BRL 31.32 per share

- 2025-10: BRL 31.00 per share

- 2025-11: BRL 32.99 per share

- 2025-12: BRL 34.00 per share

- 2026-01: BRL 33.70 per share

- 2026-02: BRL 34.29 per share

- 2026-03: BRL 34.39 per share

- 2026-04: BRL 34.80 per share

- 2026-05: BRL 33.90 per share

- 2026-06: BRL 33.30 per share

- 2026-07: BRL 31.35 per share

- 2026-08: BRL 33.30 per share

- 2026-09: BRL 34.08 per share

- 2026-10: BRL 35.12 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 22.92 per share, central BRL 24.47 per share, high BRL 26.25 per share

- FY2017: low BRL 10.58 per share, central BRL 11.25 per share, high BRL 12.01 per share

- FY2018: low BRL 6.27 per share, central BRL 6.68 per share, high BRL 7.14 per share

- FY2019: low BRL 19.98 per share, central BRL 21.08 per share, high BRL 22.34 per share

- FY2020: low BRL 27.24 per share, central BRL 33.68 per share, high BRL 36.14 per share

- FY2021: low BRL 33.38 per share, central BRL 41.36 per share, high BRL 44.59 per share

- FY2022: low BRL 28.75 per share, central BRL 30.59 per share, high BRL 32.72 per share

- FY2023: low BRL 38.81 per share, central BRL 49.60 per share, high BRL 53.49 per share

- FY2024: low BRL 41.99 per share, central BRL 49.62 per share, high BRL 53.17 per share

- FY2025: low BRL 46.72 per share, central BRL 57.81 per share, high BRL 62.26 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 2026-10-15T06:43:29.816Z 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