Edison SpA (EDNR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EDNR - IT0003372205
2.443
+0.02 (+0.74%)
Taking everything into account, EDNR scores 5 out of 10 in our fundamental rating. EDNR was compared to 22 industry peers in the Independent Power and Renewable Electricity Producers industry. EDNR has an excellent profitability rating, but there are some minor concerns on its financial health. EDNR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year EDNR was profitable.
- In the past year EDNR had a positive cash flow from operations.
- In the past 5 years EDNR has always been profitable.
- In the past 5 years EDNR always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 8.51%, EDNR belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- With an excellent Return On Equity value of 17.44%, EDNR belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 19.14%, EDNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for EDNR is significantly above the industry average of 5.29%.
- The 3 year average ROIC (16.91%) for EDNR is below the current ROIC(19.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 17.44% | ||
| ROIC | 19.14% |
ROA(3y)2.56%
ROA(5y)2.07%
ROE(3y)5.62%
ROE(5y)4.84%
ROIC(3y)16.91%
ROIC(5y)11.93%
1.3 Margins
- EDNR's Profit Margin of 3.71% is in line compared to the rest of the industry. EDNR outperforms 54.55% of its industry peers.
- EDNR's Profit Margin has declined in the last couple of years.
- The Operating Margin of EDNR (7.94%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of EDNR has declined.
- EDNR has a Gross Margin (23.00%) which is comparable to the rest of the industry.
- EDNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | 3.71% | ||
| GM | 23% |
OM growth 3Y-15.69%
OM growth 5YN/A
PM growth 3Y-9.37%
PM growth 5YN/A
GM growth 3Y2.14%
GM growth 5Y5.4%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EDNR is creating value.
- EDNR has about the same amout of shares outstanding than it did 1 year ago.
- EDNR has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for EDNR is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.18 indicates that EDNR is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.18, EDNR is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- EDNR has a debt to FCF ratio of 5.31. This is a neutral value as EDNR would need 5.31 years to pay back of all of its debts.
- EDNR's Debt to FCF ratio of 5.31 is amongst the best of the industry. EDNR outperforms 86.36% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that EDNR is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.11, EDNR is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 5.31 | ||
| Altman-Z | 3.18 |
ROIC/WACC3.65
WACC5.25%
2.3 Liquidity
- EDNR has a Current Ratio of 1.23. This is a normal value and indicates that EDNR is financially healthy and should not expect problems in meeting its short term obligations.
- EDNR has a Current ratio of 1.23. This is in the lower half of the industry: EDNR underperforms 72.73% of its industry peers.
- A Quick Ratio of 1.18 indicates that EDNR should not have too much problems paying its short term obligations.
- The Quick ratio of EDNR (1.18) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- EDNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.57%.
- The Earnings Per Share has been decreasing by -6.08% on average over the past years.
- EDNR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.54%.
- EDNR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)-31.57%
EPS 3Y-6.08%
EPS 5YN/A
EPS Q2Q%-65.29%
Revenue 1Y (TTM)-16.54%
Revenue growth 3Y9.44%
Revenue growth 5Y13.42%
Sales Q2Q%36.25%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.37, the valuation of EDNR can be described as correct.
- Based on the Price/Earnings ratio, EDNR is valued cheaper than 86.36% of the companies in the same industry.
- EDNR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than EDNR, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, EDNR is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.39 | ||
| EV/EBITDA | 0.03 |
4.3 Compensation for Growth
- The decent profitability rating of EDNR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- EDNR has a Yearly Dividend Yield of 3.70%.
- Compared to an average industry Dividend Yield of 2.26, EDNR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, EDNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 31.74% of the earnings are spent on dividend by EDNR. This is a low number and sustainable payout ratio.
DP31.74%
EPS Next 2YN/A
EPS Next 3YN/A
Edison SpA / EDNR.MI FAQ
What is the ChartMill fundamental rating of Edison SpA (EDNR.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EDNR.MI.
Can you provide the valuation status for Edison SpA?
ChartMill assigns a valuation rating of 5 / 10 to Edison SpA (EDNR.MI). This can be considered as Fairly Valued.
How profitable is Edison SpA (EDNR.MI) stock?
Edison SpA (EDNR.MI) has a profitability rating of 7 / 10.
Can you provide the dividend sustainability for EDNR stock?
The dividend rating of Edison SpA (EDNR.MI) is 5 / 10 and the dividend payout ratio is 31.74%.