EDP SA (EDP.LS) Stock Fundamental Analysis
Europe - ELI:EDP - PTEDP0AM0009 - Common Stock
4.42 EUR
+0.02 (+0.45%)
We assign a fundamental rating of 3 out of 10 to EDP. EDP was compared to 18 industry peers in the Electric Utilities industry. There are concerns on the financial health of EDP while its profitability can be described as average. EDP is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EDP was profitable.
EDP had a positive operating cash flow in the past year.
EDP had positive earnings in each of the past 5 years.
EDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EDP's Return On Assets of 1.39% is on the low side compared to the rest of the industry. EDP is outperformed by 83.33% of its industry peers.
The Return On Equity of EDP (6.95%) is worse than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.21%, EDP is doing worse than 72.22% of the companies in the same industry.
EDP had an Average Return On Invested Capital over the past 3 years of 3.20%. This is below the industry average of 7.70%.
The 3 year average ROIC (3.20%) for EDP is below the current ROIC(3.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| ROIC | 3.21% |
ROA(3y)1.42%
ROA(5y)1.48%
ROE(3y)7.61%
ROE(5y)7.64%
ROIC(3y)3.2%
ROIC(5y)2.94%
1.3 Margins
EDP's Profit Margin of 4.84% is on the low side compared to the rest of the industry. EDP is outperformed by 72.22% of its industry peers.
In the last couple of years the Profit Margin of EDP has grown nicely.
EDP has a Operating Margin of 12.97%. This is in the lower half of the industry: EDP underperforms 66.67% of its industry peers.
EDP's Operating Margin has been stable in the last couple of years.
EDP has a Gross Margin of 43.15%. This is in the lower half of the industry: EDP underperforms 61.11% of its industry peers.
In the last couple of years the Gross Margin of EDP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 4.84% | ||
| GM | 43.15% |
OM growth 3Y16.41%
OM growth 5Y0%
PM growth 3Y6.88%
PM growth 5Y8.43%
GM growth 3Y11.93%
GM growth 5Y4.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDP is destroying value.
Compared to 1 year ago, EDP has more shares outstanding
Compared to 5 years ago, EDP has more shares outstanding
EDP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that EDP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EDP (0.84) is worse than 77.78% of its industry peers.
EDP has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.77, EDP is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.84 |
ROIC/WACC0.6
WACC5.36%
2.3 Liquidity
A Current Ratio of 0.98 indicates that EDP may have some problems paying its short term obligations.
EDP has a Current ratio of 0.98. This is comparable to the rest of the industry: EDP outperforms 50.00% of its industry peers.
A Quick Ratio of 0.93 indicates that EDP may have some problems paying its short term obligations.
EDP has a Quick ratio (0.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
EDP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.10%.
EDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.36% yearly.
EDP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
The Revenue has been growing slightly by 0.87% on average over the past years.
EPS 1Y (TTM)-44.1%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-30%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%4.88%
3.2 Future
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
The Revenue is expected to decrease by -1.32% on average over the next years.
EPS Next Y51.9%
EPS Next 2Y22.38%
EPS Next 3Y14.32%
EPS Next 5Y11.03%
Revenue Next Year-0.61%
Revenue Next 2Y-0.82%
Revenue Next 3Y-0.96%
Revenue Next 5Y-1.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.56, which indicates a rather expensive current valuation of EDP.
72.22% of the companies in the same industry are cheaper than EDP, based on the Price/Earnings ratio.
EDP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.76 indicates a correct valuation of EDP.
Based on the Price/Forward Earnings ratio, EDP is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, EDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EDP's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)2.94
EPS Next 2Y22.38%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
EDP has a Yearly Dividend Yield of 4.76%, which is a nice return.
EDP's Dividend Yield is a higher than the industry average which is at 4.07.
EDP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of EDP has a limited annual growth rate of 1.06%.
Dividend Growth(5Y)1.06%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
110.52% of the earnings are spent on dividend by EDP. This is not a sustainable payout ratio.
EDP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP110.52%
EPS Next 2Y22.38%
EPS Next 3Y14.32%
ELI:EDP (10/17/2025, 3:00:09 PM)
4.42
+0.02 (+0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.7%
Inst Owner ChangeN/A
Ins Owners6.84%
Ins Owner ChangeN/A
Market Cap18.49B
Analysts77.69
Price Target4.36 (-1.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend0.2
Dividend Growth(5Y)1.06%
DP110.52%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.87%
Min EPS beat(2)-11.71%
Max EPS beat(2)41.44%
EPS beat(4)1
Avg EPS beat(4)-119.57%
Min EPS beat(4)-496.04%
Max EPS beat(4)41.44%
EPS beat(8)4
Avg EPS beat(8)-58.43%
EPS beat(12)5
Avg EPS beat(12)-47.66%
EPS beat(16)7
Avg EPS beat(16)-35.42%
Revenue beat(2)2
Avg Revenue beat(2)5.69%
Min Revenue beat(2)1.39%
Max Revenue beat(2)9.98%
Revenue beat(4)2
Avg Revenue beat(4)-16.18%
Min Revenue beat(4)-70.83%
Max Revenue beat(4)9.98%
Revenue beat(8)2
Avg Revenue beat(8)-22.25%
Revenue beat(12)3
Avg Revenue beat(12)-17.4%
Revenue beat(16)6
Avg Revenue beat(16)-6.45%
PT rev (1m)1.56%
PT rev (3m)2.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)0.97%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)3.45%
Revenue NY rev (3m)-3.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 14.76 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 4.14 | ||
| P/B | 1.72 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.18
EY4.07%
EPS(NY)0.3
Fwd EY6.78%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)1.07
OCFY24.13%
SpS3.69
BVpS2.57
TBVpS0.7
PEG (NY)0.47
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| ROCE | 4.7% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 4.22% | ||
| OM | 12.97% | ||
| PM (TTM) | 4.84% | ||
| GM | 43.15% | ||
| FCFM | N/A |
ROA(3y)1.42%
ROA(5y)1.48%
ROE(3y)7.61%
ROE(5y)7.64%
ROIC(3y)3.2%
ROIC(5y)2.94%
ROICexc(3y)3.53%
ROICexc(5y)3.23%
ROICexgc(3y)4.47%
ROICexgc(5y)4.1%
ROCE(3y)4.68%
ROCE(5y)4.31%
ROICexcg growth 3Y10.82%
ROICexcg growth 5Y-4.38%
ROICexc growth 3Y10.98%
ROICexc growth 5Y-4.28%
OM growth 3Y16.41%
OM growth 5Y0%
PM growth 3Y6.88%
PM growth 5Y8.43%
GM growth 3Y11.93%
GM growth 5Y4.76%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 34.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 0.84 |
F-Score5
WACC5.36%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)34.87%
Cap/Sales(5y)31.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.1%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-30%
EPS Next Y51.9%
EPS Next 2Y22.38%
EPS Next 3Y14.32%
EPS Next 5Y11.03%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%4.88%
Revenue Next Year-0.61%
Revenue Next 2Y-0.82%
Revenue Next 3Y-0.96%
Revenue Next 5Y-1.32%
EBIT growth 1Y-8.18%
EBIT growth 3Y16.36%
EBIT growth 5Y0.87%
EBIT Next Year72.29%
EBIT Next 3Y20.73%
EBIT Next 5Y13.41%
FCF growth 1Y80%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y196.9%
OCF growth 3Y27.86%
OCF growth 5Y13.54%