
Engie Brasil Energia S.A. (EGIEY)
ValueMarkers Composite Index
12% below intrinsic value ($1)
Engie Brasil Energia S.A. (EGIEY) — VMCI valuation read
Headline read on EGIEY: VMCI of 55/100 versus a Utilities sector median of 50. The 5-point above-median position is what makes Engie Brasil Energia S.A. a relative-value candidate in the mid-cap cohort, before any pillar-level review.
Form 4 filings on EGIEY: zero in the trailing 30 days. The absence of insider transactions is itself a data point, just a low-information one. The thesis runs on financials and price action until that changes.
**Investor frame.** Three reads on EGIEY: value (EGIEY trades at 25.0x earnings, 39% above the Utilities median of 18.0x), quality (ROIC of 11.0% sits 1.0pp above the Utilities median (10.0%)), and risk (net debt to EBITDA of 1.1x leaves covenant headroom). The value read also implies an EV/EBITDA gap of +4.0x against the Utilities 12.0x baseline.
EGIEY rose 0.2% over the trailing 7 days, with a -18.6% read on a 30-day basis.
Engie Brasil Energia S.A., together with its subsidiaries, generates, sells, and trades in electrical energy in Brazil. The company operates 68 plants, including 11 hydroelectric power plants; 4 thermal power plants; 49 wind-powered plants; 3 biomass; 2 photovoltaic solar power plant; 1 conventional thermoelectric plant; and 2 small hydroelectric plants in the 21 states of Brazil. As of December 31, 2021, it had an installed capacity of 8,218.7 megawatts. The company also transports natural gas through 4,500 km of gas pipelines in the Southeast, Northeast, and North regions of Brazil. In addition, it engages in manufacture, wholesale, retail sale, operation, and maintenance of solar panels. The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016. The company was incorporated in 2005 and is headquartered in Florianópolis, Brazil. Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
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