AXIA Energia (AXIA3.SA) stock analysis

In our weekly check, AXIA Energia is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About AXIA Energia

AXIA Energia is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as AXIA3.SA.

What our checks show for AXIA3.SA

Red flags

• Net debt is 5x a year of EBITDA (debt/equity 0.6). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 20.7 points, to 47.5%: costs are rising faster than prices.
• The stock has fallen as much as 89% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.8 years.
• Return on capital (ROCE) is only 4.9%.

Warning signs

• Operating profit covers interest only 2.2 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 1.7 points from today's 27%.
• The price swings a lot: 42.4% annual volatility. Expect large ups and downs.

Strengths

• The net margin rose by 12 points over 5 years, to 27%.
• Operating cash flow is 1.4x net profit: the profit arrives as real cash.
• Earnings per share grew 57.4% a year over the last 3 years.
• Net profit grew 65.7% a year over the last 3 years.
• The company keeps 27% of its revenue as net profit.
• Free cash flow is 32.1% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-11-04

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Questions

What grade does AXIA Energia (AXIA3.SA) have?

In our weekly check, AXIA Energia is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AXIA3.SA stock?

This week's biggest flags for AXIA Energia: High debt, Gross margin falling, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does AXIA Energia do?

AXIA Energia is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as AXIA3.SA.

When does AXIA Energia report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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