AXIA Energia American Depositary Shares (Each representing one Common Share) (AXIA)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a simple business with durable assets, honest accounting, and a price that lets me sleep. AXIA Energia is a Brazilian electric utility with hydro, wind, and solar generation plus a huge transmission network: 43,072.7 MW of hydro, 798.7 MW of wind, and 67,030.74 km of lines. That scale can be a moat, but regulated utilities earn what regulators allow. At the 2026-08-14 close of $9.53, FairStock calculates P/E 9.34 and P/B 1.13. FairStock’s Graham Number is $35.10, implying a 72.85% margin of safety, and the TTM FCF yield is 48.0% on $13.8B FCF. A 5.16% dividend yield and beta of 0.22 add defensive appeal. The latest quarter, 2026-Q2, showed $11.2B revenue and $1.2B net income, a 10.64% margin. But I am wary. Revenue growth is -11.30%, ROCE is only 3.05%, and Altman Z-Score is 0.33, which signals balance-sheet stress despite D/E of 0.63. Profit growth of 999% and a PEG of 0.01 are likely rebound artifacts, not a trend. Piotroski F-Score is 4/9, and no Lynch category exists because only 0 years of filed results are available. So: cheap on trailing numbers, but the quality and durability of the cash flow must be proven. I would want stable revenue, better capital returns, and a stronger balance sheet before calling it a bargain rather than a value trap.

In plain English: AXIA Energia produces and moves electricity in Brazil using water, wind, and solar power. Its latest quarter was profitable and it pays shareholders a good income, but revenue has been falling and the balance sheet carries risk. The share price looks low compared with its profits and the value of its assets, so it may be cheap, though the business is not clearly strong.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-08-14 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer