EDP-ENERGIAS DE PORTUGAL SA (EDP.LS)

PTEDP0AM0009 - Common Stock

3.601  -0.01 (-0.33%)

Fundamental Rating

3

EDP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 16 industry peers in the Electric Utilities industry. While EDP is still in line with the averages on profitability rating, there are concerns on its financial health. EDP is valued correctly, but it does not seem to be growing. Finally EDP also has an excellent dividend rating.



4

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.
In the past 5 years EDP has always been profitable.
In the past 5 years EDP always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.80%, EDP is doing worse than 66.67% of the companies in the same industry.
EDP's Return On Equity of 8.48% is on the low side compared to the rest of the industry. EDP is outperformed by 66.67% of its industry peers.
The Return On Invested Capital of EDP (3.15%) is worse than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDP is below the industry average of 8.17%.
Industry RankSector Rank
ROA 1.8%
ROE 8.48%
ROIC 3.15%
ROA(3y)1.37%
ROA(5y)1.44%
ROE(3y)7.64%
ROE(5y)7.41%
ROIC(3y)3.19%
ROIC(5y)3.39%

1.3 Margins

EDP's Profit Margin of 6.49% is fine compared to the rest of the industry. EDP outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of EDP has grown nicely.
Looking at the Operating Margin, with a value of 12.28%, EDP is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of EDP has grown nicely.
EDP has a Gross Margin (43.04%) which is comparable to the rest of the industry.
EDP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.28%
PM (TTM) 6.49%
GM 43.04%
OM growth 3Y5.93%
OM growth 5Y9.63%
PM growth 3Y-2.96%
PM growth 5Y11.58%
GM growth 3Y1.83%
GM growth 5Y5.29%

0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDP is destroying value.
EDP has more shares outstanding than it did 1 year ago.
EDP has more shares outstanding than it did 5 years ago.
EDP has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.76, we must say that EDP is in the distress zone and has some risk of bankruptcy.
EDP has a Altman-Z score of 0.76. This is amonst the worse of the industry: EDP underperforms 80.00% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that EDP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.64, EDP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.64
Debt/FCF N/A
Altman-Z 0.76
ROIC/WACC0.59
WACC5.33%

2.3 Liquidity

EDP has a Current Ratio of 0.93. This is a bad value and indicates that EDP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, EDP is in line with its industry, outperforming 46.67% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that EDP may have some problems paying its short term obligations.
The Quick ratio of EDP (0.86) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.86

2

3. Growth

3.1 Past

EDP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.67%.
EDP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.74% yearly.
EDP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.16%.
Measured over the past years, EDP shows a small growth in Revenue. The Revenue has been growing by 1.18% on average per year.
EPS 1Y (TTM)-6.67%
EPS 3Y3.37%
EPS 5Y28.74%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-21.16%
Revenue growth 3Y9.18%
Revenue growth 5Y1.18%
Sales Q2Q%-16.16%

3.2 Future

The Earnings Per Share is expected to grow by 5.72% on average over the next years.
Based on estimates for the next years, EDP will show a decrease in Revenue. The Revenue will decrease by -2.04% on average per year.
EPS Next Y29.16%
EPS Next 2Y10.24%
EPS Next 3Y7.82%
EPS Next 5Y5.72%
Revenue Next Year-16.84%
Revenue Next 2Y-8.6%
Revenue Next 3Y-4.84%
Revenue Next 5Y-2.04%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.40, EDP is valued correctly.
EDP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.63. EDP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.24 indicates a correct valuation of EDP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDP indicates a somewhat cheap valuation: EDP is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, EDP is valued a bit cheaper.
Industry RankSector Rank
PE 14.4
Fwd PE 12.24

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

EDP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.49
PEG (5Y)0.5
EPS Next 2Y10.24%
EPS Next 3Y7.82%

7

5. Dividend

5.1 Amount

EDP has a Yearly Dividend Yield of 5.27%, which is a nice return.
Compared to an average industry Dividend Yield of 4.81, 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 RankSector Rank
Dividend Yield 5.27%

5.2 History

The dividend of EDP has a limited annual growth rate of 1.10%.
Dividend Growth(5Y)1.1%
Div Incr Years1
Div Non Decr Years3

5.3 Sustainability

78.83% 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.
DP78.83%
EPS Next 2Y10.24%
EPS Next 3Y7.82%

EDP-ENERGIAS DE PORTUGAL SA

ELI:EDP (6/21/2024, 7:00:00 PM)

3.601

-0.01 (-0.33%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.27%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.4
Fwd PE 12.24
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)0.5
Profitability
Industry RankSector Rank
ROA 1.8%
ROE 8.48%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.28%
PM (TTM) 6.49%
GM 43.04%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 1.64
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.93
Quick Ratio 0.86
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.67%
EPS 3Y3.37%
EPS 5Y
EPS Q2Q%
EPS Next Y29.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.16%
Revenue growth 3Y9.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y