EDP SA (EDP.LS) Stock Fundamental Analysis
Europe - ELI:EDP - PTEDP0AM0009 - Common Stock
3.893 EUR
-0.21 (-5.19%)
We assign a fundamental rating of 3 out of 10 to EDP. EDP was compared to 19 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 correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EDP had positive earnings in the past year.
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
The Return On Assets of EDP (1.39%) is worse than 84.21% of its industry peers.
With a Return On Equity value of 6.95%, EDP is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 3.21%, EDP is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
EDP had an Average Return On Invested Capital over the past 3 years of 3.20%. This is below the industry average of 7.53%.
The last Return On Invested Capital (3.21%) for EDP is above the 3 year average (3.20%), which is a sign of increasing profitability.
| 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 73.68% of its industry peers.
EDP's Profit Margin has improved in the last couple of years.
EDP has a worse Operating Margin (12.97%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of EDP has remained more or less at the same level.
EDP has a Gross Margin of 43.15%. This is in the lower half of the industry: EDP underperforms 63.16% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EDP is destroying value.
EDP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EDP has been increased compared to 5 years ago.
The debt/assets ratio for EDP is higher compared to a year ago.
2.2 Solvency
EDP has an Altman-Z score of 0.82. This is a bad value and indicates that EDP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, EDP is doing worse than 78.95% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that EDP has dependencies on debt financing.
EDP has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: EDP underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.61
WACC5.23%
2.3 Liquidity
A Current Ratio of 0.98 indicates that EDP may have some problems paying its short term obligations.
The Current ratio of EDP (0.98) is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that EDP may have some problems paying its short term obligations.
EDP has a Quick ratio of 0.93. This is comparable to the rest of the industry: EDP outperforms 52.63% of 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%.
Measured over the past years, EDP shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
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
EDP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.63, EDP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EDP indicates a slightly more expensive valuation: EDP is more expensive than 63.16% of the companies listed in the same industry.
EDP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
Based on the Price/Forward Earnings ratio of 13.00, the valuation of EDP can be described as correct.
EDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. EDP is cheaper than 84.21% of the companies in the same industry.
EDP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 13 |
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)0.42
PEG (5Y)2.59
EPS Next 2Y22.38%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
EDP has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 3.97, EDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, EDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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
EDP pays out 110.52% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP110.52%
EPS Next 2Y22.38%
EPS Next 3Y14.32%
ELI:EDP (11/7/2025, 7:00:00 PM)
3.893
-0.21 (-5.19%)
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 Cap16.29B
Revenue(TTM)15.46B
Net Income(TTM)747.80M
Analysts75.38
Price Target4.59 (17.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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)5.96%
PT rev (3m)7.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)0%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 13 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | 3.65 | ||
| P/B | 1.51 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.18
EY4.62%
EPS(NY)0.3
Fwd EY7.69%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)1.07
OCFY27.4%
SpS3.69
BVpS2.57
TBVpS0.7
PEG (NY)0.42
PEG (5Y)2.59
Graham Number3.23
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%
ROICexgc growth 3Y10.82%
ROICexgc 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 | 0.82 |
F-Score5
WACC5.23%
ROIC/WACC0.61
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%
EDP SA / EDP.LS FAQ
Can you provide the ChartMill fundamental rating for EDP SA?
ChartMill assigns a fundamental rating of 3 / 10 to EDP.LS.
Can you provide the valuation status for EDP SA?
ChartMill assigns a valuation rating of 4 / 10 to EDP SA (EDP.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for EDP SA?
EDP SA (EDP.LS) has a profitability rating of 4 / 10.
What is the valuation of EDP SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDP SA (EDP.LS) is 21.63 and the Price/Book (PB) ratio is 1.51.
Is the dividend of EDP SA sustainable?
The dividend rating of EDP SA (EDP.LS) is 6 / 10 and the dividend payout ratio is 110.52%.