AXIA Energia S.A. (AXIA7.SA) stock analysis

In our weekly check, AXIA Energia S.A. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 6.

About AXIA Energia S.A.

AXIA Energia S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as AXIA7.SA.

What our checks show for AXIA7.SA

Red flags

• Operating profit does not cover the interest bill (0.9x): interest is paid from cash or new debt.
• The gross margin fell by 11.1 points, to 64.2%: costs are rising faster than prices.
• Revenue fell 6.7% a year over the last 3 years.
• The dividend takes 157% of profit: little cushion if profit falls.
• The share count grew by 25% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 1.9%.

Warning signs

• Net debt is 3.5x a year of EBITDA (debt/equity 0.6). That limits room in a downturn and raises refinancing risk.
• The price swings a lot: 37% annual volatility. Expect large ups and downs.

Strengths

• The net margin rose by 2.8 points over 5 years, to 19.1%.
• Operating cash flow is 3.16x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 55.5% a year over the next years.
• Analysts expect revenue to grow about 27.3% a year over the next years.
• Analysts expect the net margin to improve by 13.2 points from today's 19.1%.
• Net profit grew 13.3% a year over the last 3 years.

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Questions

What grade does AXIA Energia S.A. (AXIA7.SA) have?

In our weekly check, AXIA Energia S.A. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AXIA7.SA stock?

This week's biggest flags for AXIA Energia S.A.: Weak interest cover, Gross margin falling, Weak revenue growth. In total 8 of 23 checks show a warning or a red flag.

What does AXIA Energia S.A. do?

AXIA Energia S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as AXIA7.SA.

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 2026-10-31

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