EQUATORIAL ON EJ NM

The company operates in electricity generation, distribution, and transmission in Brazil. It generates energy from wind and biomass sources. Electricity is distributed to municipalities in Maranhão, Pará, Piauí, and Alagoas States. Additionally, it is involved in telecom-related business operations. Founded in 1958, the company is based in Brasília, Brazil.

Overview

Sector

Utilities Electric

Target Price

33.6 BRL

Current Price

39.2 BRL

Potential

-19%

Strengths

Current Price to Earnings Ratio (17.82) is lower than the sector mean (27.88).
EV/EBIT (12.45) is lower than the sector mean.
Price to free cash flow (11.90) is lower than the sector mean.
Strong EBITDA Margin of 23.96%.

Weaknesses

With a depreciation Potential of -16.45%, based on our fundamental analysis, it suggests the stock may be overvalued.
The company have lower returns than the sector in which it operates. ROIC (5.19%) is significantly lower than the sector mean (9.52%).

Indicator	Value
PER	18.3
EV/EBITDA	10.1
Price/Free Cash Flow'	12.2
ROIC	5.2%
Net Debt/EBITDA	5.1

EQUATORIAL ON EJ NM

Overview

Strengths

Weaknesses

Key Financial Data