EDP-ENERGIAS DE PORTUGAL SA (EDP.LS)
PTEDP0AM0009 - Common Stock
Overall EDP gets a fundamental rating of 3 out of 10. We evaluated EDP against 16 industry peers in the Electric Utilities industry. EDP has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, EDP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EDP had positive earnings in the past year.
In the past year EDP had a positive cash flow from operations.
EDP had positive earnings in each of the past 5 years.
Each year in the past 5 years EDP had a positive operating cash flow.
1.2 Ratios
EDP has a worse Return On Assets (1.40%) than 68.75% of its industry peers.
EDP has a worse Return On Equity (7.57%) than 62.50% of its industry peers.
EDP has a Return On Invested Capital (3.90%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EDP is below the industry average of 7.33%.
The last Return On Invested Capital (3.90%) for EDP is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 7.57% | ||
| ROIC | 3.9% |
ROA(3y)1.43%
ROA(5y)1.35%
ROE(3y)7.68%
ROE(5y)6.92%
ROIC(3y)3.06%
ROIC(5y)3.38%
1.3 Margins
EDP's Profit Margin of 4.32% is in line compared to the rest of the industry. EDP outperforms 43.75% of its industry peers.
In the last couple of years the Profit Margin of EDP has declined.
EDP has a Operating Margin of 11.63%. This is comparable to the rest of the industry: EDP outperforms 56.25% of its industry peers.
EDP's Operating Margin has declined in the last couple of years.
EDP's Gross Margin of 36.71% is in line compared to the rest of the industry. EDP outperforms 50.00% of its industry peers.
EDP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.63% | ||
| PM | 4.32% | ||
| GM | 36.71% |
OM growth 3Y-13.4%
OM growth 5Y-4.95%
PM growth 3Y-2.71%
PM growth 5Y-14.2%
GM growth 3Y-6.62%
GM growth 5Y-2.84%
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 about the same amout of shares outstanding than it did 1 year ago.
EDP has more shares outstanding than it did 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 0.76. This is a bad value and indicates that EDP is not financially healthy and even has some risk of bankruptcy.
EDP's Altman-Z score of 0.76 is on the low side compared to the rest of the industry. EDP is outperformed by 81.25% of its industry peers.
A Debt/Equity ratio of 1.71 is on the high side and indicates that EDP has dependencies on debt financing.
EDP has a Debt to Equity ratio (1.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.85
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.85 indicates that EDP may have some problems paying its short term obligations.
EDP's Current ratio of 0.85 is on the low side compared to the rest of the industry. EDP is outperformed by 87.50% of its industry peers.
EDP has a Quick Ratio of 0.85. This is a bad value and indicates that EDP is not financially healthy enough and could expect problems in meeting its short term obligations.
EDP has a worse Quick ratio (0.78) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
EDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.67%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
The Revenue has decreased by -1.77% in the past year.
EDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y27.67%
EPS 3Y8.28%
EPS 5Y1.68%
EPS growth Q2Q-69.07%
Revenue growth 1Y-1.77%
Revenue growth 3Y12.94%
Revenue growth 5Y5.57%
Revenue growth Q2Q-19.33%
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 14.22% on average per year.
EDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y63.05%
EPS Next 2Y33.88%
EPS Next 3Y23.49%
EPS Next 5Y14.22%
Revenue Next Year15.84%
Revenue Next 2Y7.31%
Revenue Next 3Y6.98%
Revenue Next 5Y2.99%
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 19.68, EDP is valued on the expensive side.
Based on the Price/Earnings ratio, EDP is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.76. EDP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.92, EDP is valued correctly.
EDP's Price/Forward Earnings is on the same level as the industry average.
EDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 18.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
| Industry Rank | Sector 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.
EDP's earnings are expected to grow with 23.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)11.68
EPS Next 2Y33.88%
EPS Next 3Y23.49%
5. Dividend
5.1 Amount
EDP has a Yearly Dividend Yield of 4.86%, which is a nice return.
Compared to an average industry Dividend Yield of 4.33, EDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.64, EDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of EDP has a limited annual growth rate of 0.46%.
Dividend Growth(5Y)0.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
97.79% 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.
DP97.79%
EPS Next 2Y33.88%
EPS Next 3Y23.49%
EDP-ENERGIAS DE PORTUGAL SA
ELI:EDP (9/29/2023, 7:00:00 PM)
3.936
+0.03 (+0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap16.40B
Analysts80.8
Price Target5.96 (51.42%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Dividend Growth(5Y)0.46%
DP97.79%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.79%
Min EPS beat(2)-40.59%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-26.12%
Min EPS beat(4)-63.4%
Max EPS beat(4)0.52%
Revenue beat(2)2
Avg Revenue beat(2)94161.8%
Min Revenue beat(2)89894.1%
Max Revenue beat(2)98429.5%
Revenue beat(4)4
Avg Revenue beat(4)92199.4%
Min Revenue beat(4)58705.9%
Max Revenue beat(4)121768%
PT rev (1m)-0.6%
PT rev (3m)-1.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1%
EPS NY rev (1m)1.31%
EPS NY rev (3m)-1.17%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.91%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 10.91 | ||
| P/B | 1.53 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.2
EY5.08%
EPS(NY)0.3
Fwd EY7.74%
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)0.36
OCFY9.17%
SpS4.5
BVpS2.57
TBVpS0.56
PEG (NY)0.31
PEG (5Y)11.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 7.57% | ||
| ROCE | 4.98% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 5.3% | ||
| OM | 11.63% | ||
| PM | 4.32% | ||
| GM | 36.71% | ||
| FCFM | N/A |
ROA(3y)1.43%
ROA(5y)1.35%
ROE(3y)7.68%
ROE(5y)6.92%
ROIC(3y)3.06%
ROIC(5y)3.38%
ROICexc(3y)3.39%
ROICexc(5y)3.65%
ROICexgc(3y)4.35%
ROICexgc(5y)4.65%
ROCE(3y)3.9%
ROCE(5y)4.31%
ROICexcg growth 3Y-4.94%
ROICexcg growth 5Y-0.78%
ROICexc growth 3Y-6.3%
ROICexc growth 5Y-1.37%
OM growth 3Y-13.4%
OM growth 5Y-4.95%
PM growth 3Y-2.71%
PM growth 5Y-14.2%
GM growth 3Y-6.62%
GM growth 5Y-2.84%
F-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 30.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.76 |
F-Score7
WACC6.25%
ROIC/WACC0.85
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)25.21%
Cap/Sales(5y)20.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y27.67%
EPS 3Y8.28%
EPS 5Y1.68%
EPS growth Q2Q-69.07%
EPS Next Y63.05%
EPS Next 2Y33.88%
EPS Next 3Y23.49%
EPS Next 5Y14.22%
Revenue growth 1Y-1.77%
Revenue growth 3Y12.94%
Revenue growth 5Y5.57%
Revenue growth Q2Q-19.33%
Revenue Next Year15.84%
Revenue Next 2Y7.31%
Revenue Next 3Y6.98%
Revenue Next 5Y2.99%
EBIT growth 1Y52.97%
EBIT growth 3Y-2.19%
EBIT growth 5Y0.34%
EBIT Next Year94.29%
EBIT Next 3Y28.24%
EBIT Next 5Y18.93%
FCF growth 1Y-36.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.48%
OCF growth 3Y19.37%
OCF growth 5Y11.06%