# Transmissora Aliança de Energia Elétrica (TAEE3.SA)

Canonical: https://gigainvestors.com/s/TAEE3.SA

Analysis as of: 2026-10-16T07:39:11.882Z. Financial observations: FY2006–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 14.74 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.82×

- FY2017: 0.70×

- FY2018: 0.69×

- FY2019: 0.60×

- FY2020: 0.66×

- FY2021: 0.76×

- FY2022: 0.72×

- FY2023: 0.58×

- FY2024: 0.59×

- FY2025: 0.49×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 20.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 12.5%

- ROIC, second-lowest year: 12.2%

- Typical minus recent gross margin: 20.4 pp

- Typical gross margin (annual median): 74.2%

- Recent gross margin (lower of latest and 3-year median): 53.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 12.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.0%

- FY2017: 12.3%

- FY2018: 14.1%

- FY2019: 12.2%

- FY2020: 17.3%

- FY2021: 17.1%

- FY2022: 11.7%

- FY2023: 12.4%

- FY2024: 12.5%

- FY2025: 12.3%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 8.1B

- Net income, five-year total: BRL 8.3B

- Return on incremental invested capital: 54.0%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 21.2 pp

- Working capital / revenue, final three-year average: 48.4%

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

- FY2021: 0.99×

- FY2022: 0.89×

- FY2023: 0.98×

- FY2024: 1.00×

- FY2025: 1.01×

### management: pass

- 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: 14.1% vs 12.4%

- Per-share earnings: 0.83 to 4.59 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -10.4%

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

- Market cap gain: BRL -5.9B

- Cumulative retained earnings: BRL 2.6B

- Diluted shares, 10-year annual growth: -10.4%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 23.7%

- Per-share value change: BRL 3.75

- Per-share value, starting three-year median: BRL 0.83

- Per-share value, ending three-year median: BRL 4.59

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 174M

- Cumulative net income, 10 years: BRL 14B

- ROIC, first three-year median: 14.1%

- ROIC, last three-year median: 12.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.83

- FY2017: BRL 0.63

- FY2018: BRL 1.04

- FY2019: BRL 3.21

- FY2020: BRL 6.57

- FY2021: BRL 6.43

- FY2022: BRL 4.21

- FY2023: BRL 3.97

- FY2024: BRL 4.92

- FY2025: BRL 4.59

### accounting: pass

- Sloan accruals: 3.7%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.2%

- FY2017: -10.2%

- FY2018: -1.5%

- FY2019: 1.9%

- FY2020: 12.4%

- FY2021: 4.8%

- FY2022: -3.2%

- FY2023: 3.2%

- FY2024: 0.8%

- FY2025: 3.7%

## Holders

## Price story

Up 31% since Oct 2023 · sales +24.4%

Story as of 2026-10-16T10:00:10.586Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +24.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 1.4B 

- FY2017: BRL 1.1B 

- FY2018: BRL 1.6B 

- FY2019: BRL 1.8B 

- FY2020: BRL 3.6B 

- FY2021: BRL 3.5B 

- FY2022: BRL 2.6B 

- FY2023: BRL 3.4B 

- FY2024: BRL 3.7B 

- FY2025: BRL 4.6B 

### Gross margin · FY2025

gross margin 53.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 89.3% 

- FY2017: 81.6% 

- FY2018: 77.8% 

- FY2019: 68.8% 

- FY2020: 70.6% 

- FY2021: 81.3% 

- FY2022: 80.9% 

- FY2023: 63.3% 

- FY2024: 66.5% 

- FY2025: 53.8% 

## Owner memo

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

### How it makes money

Operates in utilities regulated electric; annual sales are BRL 4.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2025: revenue 4624113000; grossProfit 2489351000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 53.8% to 66.5% during 2023–25; it earns 12.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2023: grossProfit / revenue = 63.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2024: grossProfit / revenue = 66.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2025: grossProfit / revenue = 53.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); 10-year return on capital observations [[2016,0.16979058115232423],[2017,0.12250775032658266],[2018,0.14067670805541807],[2019,0.12238775776233488],[2020,0.17260005584386873],[2021,0.17076860514122855],[2022,0.11698548333351423],[2023,0.12426793114300135],[2024,0.12510005749227351],[2025,0.12252719663528856]]; median 0.12468399431763744. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2016: growth capex 0; upkeep 6569000; owner earnings 858817000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2017: growth capex 0; upkeep 16250000; owner earnings 635961000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2018: growth capex 9179368.768156119; upkeep 27257631.23184388; owner earnings 1050447368.7681562. Growth capex / owner earnings = 0.008738532782390255.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2019: growth capex 3961472.5049691834; upkeep 14849527.495030817; owner earnings 1096946072.5049691. Growth capex / owner earnings = 0.0036113648649316243.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2020: growth capex 25899000; upkeep 15280000; owner earnings 2256652400. Growth capex / owner earnings = 0.011476734298999704.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2021: growth capex 0; upkeep 52356000; owner earnings 2180852000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2022: growth capex 0; upkeep 178512000; owner earnings 1294425800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2023: growth capex 33227605.653196454; upkeep 42084394.346803546; owner earnings 1342991205.6531963. Growth capex / owner earnings = 0.024741491614634514.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2024: growth capex 18047419.974463694; upkeep 26237580.025536306; owner earnings 1692116219.9744637. Growth capex / owner earnings = 0.010665591264609505.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); FY2025: growth capex 0; upkeep 43797000; owner earnings 1599201200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); Dividend observations: [[2016,931543000],[2017,608319000],[2018,960204000],[2019,651341000],[2020,1106182000],[2021,1551506000],[2022,1672384000],[2023,1004021000],[2024,1006548000],[2025,1020493000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 63% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TAEE3.SA SharesStats.PercentInsiders = 62.999 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:11.882Z); Closing price 14.74 BRL; reporting-to-trading FX 1; FY2025 annual sales per share 13.422722104482771; price multiple 1.0981379101246014. FY2025 cash earnings/share 4.642108291202091. Closing-price date 2026-10-15.

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

- 2016-10: BRL 10.33 per share

- 2016-11: BRL 10.33 per share

- 2016-12: BRL 10.33 per share

- 2017-01: BRL 10.33 per share

- 2017-02: BRL 10.33 per share

- 2017-03: BRL 10.33 per share

- 2017-04: BRL 10.33 per share

- 2017-05: BRL 10.02 per share

- 2017-06: BRL 7.50 per share

- 2017-07: BRL 7.91 per share

- 2017-08: BRL 7.70 per share

- 2017-09: BRL 7.55 per share

- 2017-10: BRL 7.00 per share

- 2017-11: BRL 7.11 per share

- 2017-12: BRL 7.15 per share

- 2018-01: BRL 7.00 per share

- 2018-02: BRL 7.01 per share

- 2018-03: BRL 7.80 per share

- 2018-04: BRL 7.39 per share

- 2018-05: BRL 6.00 per share

- 2018-06: BRL 6.99 per share

- 2018-07: BRL 7.00 per share

- 2018-08: BRL 6.81 per share

- 2018-09: BRL 7.16 per share

- 2018-10: BRL 8.84 per share

- 2018-11: BRL 7.90 per share

- 2018-12: BRL 8.47 per share

- 2019-01: BRL 9.85 per share

- 2019-02: BRL 9.58 per share

- 2019-03: BRL 9.25 per share

- 2019-04: BRL 9.36 per share

- 2019-05: BRL 9.48 per share

- 2019-06: BRL 9.89 per share

- 2019-07: BRL 9.75 per share

- 2019-08: BRL 9.73 per share

- 2019-09: BRL 9.79 per share

- 2019-10: BRL 9.84 per share

- 2019-11: BRL 9.45 per share

- 2019-12: BRL 10.28 per share

- 2020-01: BRL 10.40 per share

- 2020-02: BRL 9.90 per share

- 2020-03: BRL 8.90 per share

- 2020-04: BRL 9.14 per share

- 2020-05: BRL 9.55 per share

- 2020-06: BRL 9.43 per share

- 2020-07: BRL 9.72 per share

- 2020-08: BRL 9.45 per share

- 2020-09: BRL 9.30 per share

- 2020-10: BRL 9.39 per share

- 2020-11: BRL 11.04 per share

- 2020-12: BRL 11.20 per share

- 2021-01: BRL 10.75 per share

- 2021-02: BRL 10.35 per share

- 2021-03: BRL 12.90 per share

- 2021-04: BRL 13.88 per share

- 2021-05: BRL 12.92 per share

- 2021-06: BRL 12.35 per share

- 2021-07: BRL 12.66 per share

- 2021-08: BRL 12.71 per share

- 2021-09: BRL 12.10 per share

- 2021-10: BRL 12.40 per share

- 2021-11: BRL 11.95 per share

- 2021-12: BRL 12.12 per share

- 2022-01: BRL 12.81 per share

- 2022-02: BRL 13.01 per share

- 2022-03: BRL 14.84 per share

- 2022-04: BRL 14.79 per share

- 2022-05: BRL 13.55 per share

- 2022-06: BRL 12.93 per share

- 2022-07: BRL 13.60 per share

- 2022-08: BRL 13.82 per share

- 2022-09: BRL 13.04 per share

- 2022-10: BRL 13.42 per share

- 2022-11: BRL 11.58 per share

- 2022-12: BRL 11.63 per share

- 2023-01: BRL 12.30 per share

- 2023-02: BRL 11.86 per share

- 2023-03: BRL 11.61 per share

- 2023-04: BRL 12.07 per share

- 2023-05: BRL 12.40 per share

- 2023-06: BRL 12.59 per share

- 2023-07: BRL 12.07 per share

- 2023-08: BRL 11.44 per share

- 2023-09: BRL 11.51 per share

- 2023-10: BRL 11.23 per share

- 2023-11: BRL 12.12 per share

- 2023-12: BRL 12.80 per share

- 2024-01: BRL 12.19 per share

- 2024-02: BRL 11.68 per share

- 2024-03: BRL 12.00 per share

- 2024-04: BRL 11.71 per share

- 2024-05: BRL 11.40 per share

- 2024-06: BRL 11.32 per share

- 2024-07: BRL 11.21 per share

- 2024-08: BRL 11.77 per share

- 2024-09: BRL 11.40 per share

- 2024-10: BRL 11.59 per share

- 2024-11: BRL 11.32 per share

- 2024-12: BRL 10.91 per share

- 2025-01: BRL 11.10 per share

- 2025-02: BRL 10.94 per share

- 2025-03: BRL 11.30 per share

- 2025-04: BRL 11.95 per share

- 2025-05: BRL 11.74 per share

- 2025-06: BRL 11.55 per share

- 2025-07: BRL 11.09 per share

- 2025-08: BRL 11.50 per share

- 2025-09: BRL 12.13 per share

- 2025-10: BRL 12.62 per share

- 2025-11: BRL 14.27 per share

- 2025-12: BRL 13.90 per share

- 2026-01: BRL 13.94 per share

- 2026-02: BRL 14.59 per share

- 2026-03: BRL 14.10 per share

- 2026-04: BRL 13.98 per share

- 2026-05: BRL 13.01 per share

- 2026-06: BRL 13.18 per share

- 2026-07: BRL 13.14 per share

- 2026-08: BRL 12.96 per share

- 2026-09: BRL 13.70 per share

- 2026-10: BRL 14.74 per share

## Annual estimated value (BRL 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.