Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Engie Brasil Energia S.A. (EGIE3.SA)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$72.26 - $164.59$105.19
Multi-Stage$165.56 - $182.23$173.74
Blended Fair Value$139.46
Current Price$40.70
Upside242.66%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-12.89%0.48%1.392.922.803.421.522.772.441.031.430.86
YoY Growth---52.34%4.09%-18.14%125.04%-45.11%13.61%137.29%-27.95%65.26%-34.86%
Dividend Yield--3.60%7.38%6.93%7.79%3.53%6.97%5.44%3.07%4.10%2.22%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,034.30
(-) Cash Dividends Paid (M)1,204.85
(=) Cash Retained (M)1,829.46
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)606.86379.29227.57
Cash Retained (M)1,829.461,829.461,829.46
(-) Cash Required (M)-606.86-379.29-227.57
(=) Excess Retained (M)1,222.601,450.171,601.89
(/) Shares Outstanding (M)815.93815.93815.93
(=) Excess Retained per Share1.501.781.96
LTM Dividend per Share1.481.481.48
(+) Excess Retained per Share1.501.781.96
(=) Adjusted Dividend2.983.253.44
WACC / Discount Rate4.88%4.88%4.88%
Growth Rate0.73%1.73%2.73%
Fair Value$72.26$105.19$164.59
Upside / Downside77.55%158.45%304.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,034.303,086.843,140.283,194.653,249.963,306.233,405.42
Payout Ratio39.71%49.77%59.82%69.88%79.94%90.00%92.50%
Projected Dividends (M)1,204.851,536.201,878.662,232.522,598.072,975.613,150.01

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.88%4.88%4.88%
Growth Rate0.73%1.73%2.73%
Year 1 PV (M)1,450.341,464.741,479.14
Year 2 PV (M)1,674.541,707.951,741.69
Year 3 PV (M)1,878.741,935.251,992.88
Year 4 PV (M)2,064.172,147.372,233.05
Year 5 PV (M)2,232.002,345.012,462.56
PV of Terminal Value (M)125,787.94132,156.88138,781.22
Equity Value (M)135,087.73141,757.20148,690.54
Shares Outstanding (M)815.93815.93815.93
Fair Value$165.56$173.74$182.23
Upside / Downside306.79%326.87%347.75%

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