Equatorial Energia S.A. (EQTL3.SA) stock analysis

In our weekly check, Equatorial Energia S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10.

About Equatorial Energia S.A.

Equatorial Energia S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as EQTL3.SA.

What our checks show for EQTL3.SA

Red flags

• Net debt is 7.4x a year of EBITDA (debt/equity 2.43). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.1 times: a weak year could make the payments hard.
• The net margin fell by 13.9 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• Analysts expect revenue to shrink about 4.1% a year.
• The net margin is only 1.8%: little room if costs rise.
• Free cash flow is negative (-9.1% of revenue): the business spends more cash than it brings in.
• The dividend takes 517% of profit: little cushion if profit falls.
• The stock has fallen as much as 89% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 9.9 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 14.7% a year over the last 3 years.
• Net profit fell 11.3% a year over the last 3 years.
• Return on capital (ROCE) is only 6.5%.

Strengths

• The gross margin is 28% and has risen by 1.4 points: pricing power is holding.
• Operating cash flow is 3.09x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 76.7% a year over the next years.
• Analysts expect the net margin to improve by 8.2 points from today's 1.8%.
• Revenue grew 25.3% a year over the last 3 years.
• A large company: market value $12.27 billion.

Next earnings report: 2026-11-11

Similar companies

D · AEP · CPLE3.SA · ETR · XEL · 5347.KL

Questions

What grade does Equatorial Energia S.A. (EQTL3.SA) have?

In our weekly check, Equatorial Energia S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EQTL3.SA stock?

This week's biggest flags for Equatorial Energia S.A.: High debt, Weak interest cover, Margins falling. In total 13 of 25 checks show a warning or a red flag.

What does Equatorial Energia S.A. do?

Equatorial Energia S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as EQTL3.SA.

When does Equatorial Energia S.A. report earnings next?

The next earnings report is expected on 2026-11-11. 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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