EDP RENOVAVEIS SA (EDPR.LS)
ES0127797019 - Common Stock
We assign a fundamental rating of 3 out of 10 to EDPR. EDPR was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. While EDPR is still in line with the averages on profitability rating, there are concerns on its financial health. EDPR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EDPR was profitable.
In the past year EDPR had a positive cash flow from operations.
EDPR had positive earnings in each of the past 5 years.
In the past 5 years EDPR always reported a positive cash flow from operatings.
1.2 Ratios
EDPR has a better Return On Assets (2.46%) than 68.42% of its industry peers.
Looking at the Return On Equity, with a value of 6.68%, EDPR is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.41%, EDPR is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EDPR is below the industry average of 4.80%.
The 3 year average ROIC (2.69%) for EDPR is below the current ROIC(4.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 6.68% | ||
| ROIC | 4.41% |
ROA(3y)2.08%
ROA(5y)2.4%
ROE(3y)5.7%
ROE(5y)6.29%
ROIC(3y)2.69%
ROIC(5y)3.11%
1.3 Margins
EDPR has a better Profit Margin (21.91%) than 68.42% of its industry peers.
EDPR's Profit Margin has declined in the last couple of years.
EDPR has a better Operating Margin (38.43%) than 73.68% of its industry peers.
In the last couple of years the Operating Margin of EDPR has declined.
EDPR has a Gross Margin (79.98%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EDPR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.43% | ||
| PM (TTM) | 21.91% | ||
| GM | 79.98% |
OM growth 3Y-11.51%
OM growth 5Y-8.74%
PM growth 3Y-24.53%
PM growth 5Y-5.66%
GM growth 3Y-1.38%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
EDPR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EDPR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for EDPR has been increased compared to 5 years ago.
EDPR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that EDPR is in the distress zone and has some risk of bankruptcy.
EDPR has a Altman-Z score of 0.83. This is in the lower half of the industry: EDPR underperforms 73.68% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that EDPR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, EDPR is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.66
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.66 indicates that EDPR may have some problems paying its short term obligations.
EDPR has a Current ratio of 0.66. This is amonst the worse of the industry: EDPR underperforms 94.74% of its industry peers.
EDPR has a Quick Ratio of 0.66. This is a bad value and indicates that EDPR is not financially healthy enough and could expect problems in meeting its short term obligations.
EDPR has a worse Quick ratio (0.61) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for EDPR have decreased strongly by -51.70% in the last year.
EDPR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.18% yearly.
Looking at the last year, EDPR shows a decrease in Revenue. The Revenue has decreased by -7.92% in the last year.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)-51.7%
EPS 3Y-21.37%
EPS 5Y-3.18%
EPS Q2Q%0%
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y8.96%
Revenue growth 5Y5.7%
Sales Q2Q%-10.48%
3.2 Future
Based on estimates for the next years, EDPR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.82% on average per year.
Based on estimates for the next years, EDPR will show a small growth in Revenue. The Revenue will grow by 7.79% on average per year.
EPS Next Y45.11%
EPS Next 2Y35.97%
EPS Next 3Y31.01%
EPS Next 5Y21.82%
Revenue Next Year5.45%
Revenue Next 2Y8.84%
Revenue Next 3Y8.16%
Revenue Next 5Y7.79%
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 46.19, the valuation of EDPR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EDPR indicates a slightly more expensive valuation: EDPR is more expensive than 73.68% of the companies listed in the same industry.
EDPR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.41.
Based on the Price/Forward Earnings ratio of 25.29, the valuation of EDPR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EDPR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.59. EDPR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.19 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EDPR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EDPR may justify a higher PE ratio.
EDPR's earnings are expected to grow with 31.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y35.97%
EPS Next 3Y31.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, EDPR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, EDPR has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, EDPR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of EDPR decreases each year by -12.77%.
Dividend Growth(5Y)-12.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
EDPR pays out 8.98% of its income as dividend. This is a sustainable payout ratio.
DP8.98%
EPS Next 2Y35.97%
EPS Next 3Y31.01%
EDP RENOVAVEIS SA
ELI:EDPR (7/26/2024, 7:00:00 PM)
14.32
+0.26 (+1.85%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 46.19 | ||
| Fwd PE | 25.29 | ||
| 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)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 6.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.43% | ||
| PM (TTM) | 21.91% | ||
| GM | 79.98% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 | ||
| 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)-51.7%
EPS 3Y-21.37%
EPS 5Y
EPS Q2Q%
EPS Next Y45.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y8.96%
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