EDP SA (EDP.LS)
PTEDP0AM0009 - Common Stock
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.
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.
In the past 5 years EDP has always been profitable.
Each year in the past 5 years EDP had a positive operating cash flow.
1.2 Ratios
EDP has a Return On Assets of 1.80%. This is in the lower half of the industry: EDP underperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 8.48%, EDP is doing worse than 66.67% of the companies in the same industry.
The Return On Invested Capital of EDP (3.15%) is worse than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDP is significantly below the industry average of 8.46%.
| Industry Rank | Sector 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 has a better Profit Margin (6.49%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of EDP has grown nicely.
EDP's Operating Margin of 12.28% is on the low side compared to the rest of the industry. EDP is outperformed by 60.00% of its industry peers.
EDP's Operating Margin has improved in the last couple of years.
EDP's Gross Margin of 43.04% is in line compared to the rest of the industry. EDP outperforms 53.33% of its industry peers.
EDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for EDP has been increased compared to 5 years ago.
Compared to 1 year ago, EDP has a worse debt to assets ratio.
2.2 Solvency
EDP has an Altman-Z score of 0.77. 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 0.77, EDP is doing worse than 80.00% of the companies in the same industry.
A Debt/Equity ratio of 1.64 is on the high side and indicates that EDP has dependencies on debt financing.
The Debt to Equity ratio of EDP (1.64) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.58
WACC5.43%
2.3 Liquidity
A Current Ratio of 0.93 indicates that EDP may have some problems paying its short term obligations.
EDP has a Current ratio of 0.93. This is comparable to the rest of the industry: EDP outperforms 53.33% of its industry peers.
A Quick Ratio of 0.86 indicates that EDP may have some problems paying its short term obligations.
EDP has a Quick ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.86 |
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%.
The Earnings Per Share has been growing by 28.74% on average over the past years. This is a very strong growth
The Revenue for EDP has decreased by -21.16% in the past year. This is quite bad
The Revenue has been growing slightly by 1.18% on average over the past years.
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
EDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.19% yearly.
Based on estimates for the next years, EDP will show a decrease in Revenue. The Revenue will decrease by -2.11% on average per year.
EPS Next Y29.16%
EPS Next 2Y10.24%
EPS Next 3Y7.82%
EPS Next 5Y6.19%
Revenue Next Year-16.84%
Revenue Next 2Y-8.6%
Revenue Next 3Y-4.84%
Revenue Next 5Y-2.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 15.10 indicates a correct valuation of EDP.
Compared to the rest of the industry, the Price/Earnings ratio of EDP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EDP to the average of the S&P500 Index (24.41), we can say EDP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.84, EDP is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDP indicates a somewhat cheap valuation: EDP is cheaper than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, EDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.84 |
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)0.52
PEG (5Y)0.53
EPS Next 2Y10.24%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.36%, EDP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.66, EDP pays a bit more dividend than its industry peers.
EDP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
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.
The dividend of EDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP78.83%
EPS Next 2Y10.24%
EPS Next 3Y7.82%
EDP SA
ELI:EDP (7/26/2024, 7:00:00 PM)
3.776
+0.05 (+1.23%)
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 Cap15.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.84 | ||
| 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)0.52
PEG (5Y)0.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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