Transmissora Aliança de Energia Elétrica S.A. (TAEE11.SA) stock analysis

In our weekly check, Transmissora Aliança de Energia Elétrica S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4.

About Transmissora Aliança de Energia Elétrica S.A.

Transmissora Aliança de Energia Elétrica S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as TAEE11.SA.

What our checks show for TAEE11.SA

Red flags

• The net margin fell by 27.5 points over 5 years, to 36.2%: the company keeps less of each sale as profit.
• The gross margin fell by 21.8 points, to 59.5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 9.3% a year.
• The stock has fallen as much as 80% from a peak. Would you have held through that?

Warning signs

• Net debt is 4.1x a year of EBITDA (debt/equity 1.36). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.5 times: a weak year could make the payments hard.
• Operating cash flow is only 0.68x net profit: part of the reported profit does not arrive as cash.
• Earnings per share fell 1.1% a year over the last 3 years.
• The dividend takes 76% of profit: little cushion if profit falls.
• Recovering from its deepest fall took about 2.3 years.

Strengths

• Analysts expect the net margin to improve by 10.3 points from today's 36.2%.
• Revenue grew 19.7% a year over the last 3 years.
• The company keeps 36.2% of its revenue as net profit.
• Free cash flow is 23.4% of revenue: cash for dividends, buybacks or growth.
• The price is 3.2 times earnings (P/E), reasonable for its growth.
• Beta 0: the stock usually moves less than the market.

Similar companies

PPC.AT · ELI.BR · PNW · ENGI11.SA · EMA · OGE

Questions

What grade does Transmissora Aliança de Energia Elétrica S.A. (TAEE11.SA) have?

In our weekly check, Transmissora Aliança de Energia Elétrica S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TAEE11.SA stock?

This week's biggest flags for Transmissora Aliança de Energia Elétrica S.A.: Margins falling, Gross margin falling, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.

What does Transmissora Aliança de Energia Elétrica S.A. do?

Transmissora Aliança de Energia Elétrica S.A. is an Utilities company (Regulated Electric) based in Brazil, listed on SAO as TAEE11.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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