EDP SA (EDP.LS) Stock Fundamental Analysis
Europe • Euronext Lisbon • ELI:EDP • PTEDP0AM0009
4.317 EUR
0 (-0.09%)
Last: Jan 30, 2026, 07:00 PM
Overall EDP gets a fundamental rating of 3 out of 10. We evaluated EDP against 29 industry peers in the Electric Utilities industry. EDP has a bad profitability rating. Also its financial health evaluation is rather negative. EDP is quite expensive at the moment. It does show a decent growth rate. EDP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year EDP was profitable.
- EDP had a positive operating cash flow in the past year.
- 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 Return On Assets of 1.26%. This is amonst the worse of the industry: EDP underperforms 86.21% of its industry peers.
- EDP has a worse Return On Equity (6.06%) than 82.76% of its industry peers.
- The Return On Invested Capital of EDP (2.91%) is worse than 79.31% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EDP is below the industry average of 6.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 6.06% | ||
| ROIC | 2.91% |
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
- Looking at the Profit Margin, with a value of 4.30%, EDP is doing worse than 75.86% of the companies in the same industry.
- EDP's Profit Margin has improved in the last couple of years.
- The Operating Margin of EDP (11.77%) is worse than 72.41% of its industry peers.
- EDP's Operating Margin has been stable in the last couple of years.
- EDP's Gross Margin of 42.00% is on the low side compared to the rest of the industry. EDP is outperformed by 68.97% of its industry peers.
- EDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.77% | ||
| PM (TTM) | 4.3% | ||
| GM | 42% |
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.
- The number of shares outstanding for EDP has been increased compared to 1 year ago.
- Compared to 5 years ago, EDP has more shares outstanding
- The debt/assets ratio for EDP is higher compared to a year ago.
2.2 Solvency
- EDP has an Altman-Z score of 0.83. 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 0.83 is on the low side compared to the rest of the industry. EDP is outperformed by 79.31% of its industry peers.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that EDP has dependencies on debt financing.
- The Debt to Equity ratio of EDP (1.72) is worse than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.55
WACC5.34%
2.3 Liquidity
- EDP has a Current Ratio of 0.90. This is a bad value and indicates that EDP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of EDP (0.90) is comparable to the rest of the industry.
- A Quick Ratio of 0.84 indicates that EDP may have some problems paying its short term obligations.
- The Quick ratio of EDP (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The earnings per share for EDP have decreased strongly by -41.18% in the last year.
- Measured over the past years, EDP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.36% on average per year.
- The Revenue has been growing slightly by 5.59% in the past year.
- EDP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.87% yearly.
EPS 1Y (TTM)-41.18%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-25%
Revenue 1Y (TTM)5.59%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%3.55%
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 11.92% yearly.
- EDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y46%
EPS Next 2Y21.53%
EPS Next 3Y15.06%
EPS Next 5Y11.92%
Revenue Next Year0.38%
Revenue Next 2Y0.34%
Revenue Next 3Y0.94%
Revenue Next 5Y1.18%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.98, the valuation of EDP can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of EDP indicates a slightly more expensive valuation: EDP is more expensive than 79.31% of the companies listed in the same industry.
- EDP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.62, the valuation of EDP can be described as correct.
- 79.31% of the companies in the same industry are more expensive than EDP, based on the Price/Forward Earnings ratio.
- EDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 14.62 |
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 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)3.23
EPS Next 2Y21.53%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.75%, EDP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.10, EDP pays a better dividend. On top of this EDP pays more dividend than 86.21% of the companies listed in the same industry.
- EDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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
- 123.30% 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.
DP123.3%
EPS Next 2Y21.53%
EPS Next 3Y15.06%
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.
What is the valuation status for EDP stock?
ChartMill assigns a valuation rating of 3 / 10 to EDP SA (EDP.LS). This can be considered as Overvalued.
How profitable is EDP SA (EDP.LS) stock?
EDP SA (EDP.LS) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for EDP stock?
The Earnings per Share (EPS) of EDP SA (EDP.LS) is expected to grow by 46% in the next year.
Can you provide the dividend sustainability for EDP stock?
The dividend rating of EDP SA (EDP.LS) is 7 / 10 and the dividend payout ratio is 123.3%.