EDP-ENERGIAS DE PORTUGAL SA (EDP.LS)
PTEDP0AM0009 - Common Stock
Overall EDP gets a fundamental rating of 4 out of 10. We evaluated EDP against 18 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 has a correct valuation and a medium growth rate. EDP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EDP was profitable.
In the past year EDP had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 1.68%, EDP is doing worse than 70.59% of the companies in the same industry.
The Return On Equity of EDP (8.24%) is worse than 70.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.68%, EDP is doing worse than 76.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EDP is significantly below the industry average of 8.50%.
The last Return On Invested Capital (3.68%) for EDP is above the 3 year average (3.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 8.24% | ||
| ROIC | 3.68% |
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
The Profit Margin of EDP (5.88%) is better than 64.71% of its industry peers.
In the last couple of years the Profit Margin of EDP has grown nicely.
The Operating Margin of EDP (13.23%) is worse than 70.59% of its industry peers.
EDP's Operating Margin has improved in the last couple of years.
EDP's Gross Margin of 43.19% is in line compared to the rest of the industry. EDP outperforms 47.06% of its industry peers.
EDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.23% | ||
| PM (TTM) | 5.88% | ||
| GM | 43.19% |
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%
2. Health
2.1 Basic Checks
EDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Based on the Altman-Z score of 0.75, we must say that EDP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EDP (0.75) is worse than 82.35% of its industry peers.
EDP has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.60, EDP perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.69
WACC5.33%
2.3 Liquidity
A Current Ratio of 0.91 indicates that EDP may have some problems paying its short term obligations.
EDP has a Current ratio (0.91) which is comparable to the rest of the industry.
A Quick Ratio of 0.85 indicates that EDP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, EDP is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
EDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.35%, which is quite impressive.
Measured over the past years, EDP shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.74% on average per year.
Looking at the last year, EDP shows a very negative growth in Revenue. The Revenue has decreased by -21.54% in the last year.
EDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.18% yearly.
EPS 1Y (TTM)42.35%
EPS 3Y3.37%
EPS 5Y28.74%
EPS growth Q2Q-95.35%
Revenue 1Y (TTM)-21.54%
Revenue growth 3Y9.18%
Revenue growth 5Y1.18%
Revenue growth Q2Q-17.9%
3.2 Future
Based on estimates for the next years, EDP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.71% on average per year.
The Revenue is expected to decrease by -4.22% on average over the next years.
EPS Next Y24.34%
EPS Next 2Y11.32%
EPS Next 3Y7.53%
EPS Next 5Y10.71%
Revenue Next Year-13.29%
Revenue Next 2Y-6.29%
Revenue Next 3Y-4.01%
Revenue Next 5Y-4.22%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.99, EDP is valued correctly.
EDP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.93, EDP is valued a bit cheaper.
EDP is valuated reasonably with a Price/Forward Earnings ratio of 11.95.
Based on the Price/Forward Earnings ratio, EDP is valued a bit cheaper than 76.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.41. EDP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 11.95 |
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.
PEG (NY)0.62
PEG (5Y)0.52
EPS Next 2Y11.32%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, EDP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.67, 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 | 5.37% |
5.2 History
The dividend of EDP has a limited annual growth rate of 1.10%.
Dividend Growth(5Y)1.1%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
EDP pays out 83.10% 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.
DP83.1%
EPS Next 2Y11.32%
EPS Next 3Y7.53%
EDP-ENERGIAS DE PORTUGAL SA
ELI:EDP (4/16/2024, 5:29:45 PM)
3.597
+0.03 (+0.73%)
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 Cap14.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 11.95 | ||
| 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)0.62
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 8.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.23% | ||
| PM (TTM) | 5.88% | ||
| GM | 43.19% | ||
| 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.85 | ||
| 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)
Growth
EPS 1Y (TTM)42.35%
EPS 3Y3.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.54%
Revenue growth 3Y9.18%
Revenue growth 5Y
Revenue growth 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