EDP RENOVAVEIS SA (EDPR.LS)

ES0127797019 - Common Stock

12.545  -0.36 (-2.79%)

Fundamental Rating

4

Taking everything into account, EDPR scores 4 out of 10 in our fundamental rating. EDPR was compared to 23 industry peers in the Independent Power and Renewable Electricity Producers industry. EDPR has a medium profitability rating, but doesn't score so well on its financial health evaluation. EDPR is quite expensive at the moment. It does show a decent growth rate.



6

1. Profitability

1.1 Basic Checks

In the past year EDPR was profitable.
EDPR had a positive operating cash flow in the past year.
Of the past 5 years EDPR 4 years were profitable.
EDPR had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

EDPR's Return On Assets of 3.03% is fine compared to the rest of the industry. EDPR outperforms 68.18% of its industry peers.
EDPR has a Return On Equity of 9.23%. This is in the better half of the industry: EDPR outperforms 72.73% of its industry peers.
EDPR has a Return On Invested Capital of 5.29%. This is in the better half of the industry: EDPR outperforms 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDPR is below the industry average of 5.54%.
The last Return On Invested Capital (5.29%) for EDPR is above the 3 year average (3.28%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.03%
ROE 9.23%
ROIC 5.29%
ROA(3y)2.76%
ROA(5y)2.55%
ROE(3y)7.29%
ROE(5y)6.7%
ROIC(3y)3.28%
ROIC(5y)3.61%

1.3 Margins

The Profit Margin of EDPR (24.19%) is better than 68.18% of its industry peers.
EDPR's Profit Margin has improved in the last couple of years.
The Operating Margin of EDPR (38.59%) is comparable to the rest of the industry.
EDPR's Operating Margin has declined in the last couple of years.
EDPR has a Gross Margin (82.24%) which is comparable to the rest of the industry.
EDPR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 38.59%
PM (TTM) 24.19%
GM 82.24%
OM growth 3Y-3.83%
OM growth 5Y-3.57%
PM growth 3Y-0.09%
PM growth 5Y11.47%
GM growth 3Y-0.44%
GM growth 5Y-0.51%

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EDPR is destroying value.
EDPR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

EDPR has an Altman-Z score of 0.81. This is a bad value and indicates that EDPR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.81, EDPR is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.66 indicates that EDPR is somewhat dependend on debt financing.
EDPR's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. EDPR outperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Altman-Z 0.81
ROIC/WACC0.79
WACC6.69%

2.3 Liquidity

EDPR has a Current Ratio of 0.65. 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 Current ratio of 0.65. This is amonst the worse of the industry: EDPR underperforms 86.36% of its industry peers.
EDPR has a Quick Ratio of 0.65. This is a bad value and indicates that EDPR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EDPR (0.60) is worse than 86.36% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.6

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.14% over the past year.
EDPR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.00% yearly.
The Revenue has grown by 35.60% in the past year. This is a very strong growth!
Measured over the past years, EDPR shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
EPS 1Y (TTM)16.14%
EPS 3Y5.06%
EPS 5Y15%
EPS growth Q2Q-60.38%
Revenue 1Y (TTM)35.6%
Revenue growth 3Y9.15%
Revenue growth 5Y5.35%
Revenue growth Q2Q25.78%

3.2 Future

EDPR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.
The Revenue is expected to grow by 10.53% on average over the next years. This is quite good.
EPS Next Y-19.91%
EPS Next 2Y-9.58%
EPS Next 3Y-0.47%
EPS Next 5Y5.31%
Revenue Next Year4.22%
Revenue Next 2Y8.2%
Revenue Next 3Y9.76%
Revenue Next 5Y10.53%

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 decreasing.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.59, which indicates a correct valuation of EDPR.
Based on the Price/Earnings ratio, EDPR is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.48. EDPR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 22.80, the valuation of EDPR can be described as rather expensive.
EDPR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of EDPR to the average of the S&P500 Index (22.79), we can say EDPR is valued inline with the index average.
Industry RankSector Rank
PE 14.59
Fwd PE 22.8

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

The decent profitability rating of EDPR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-9.58%
EPS Next 3Y-0.47%

4

5. Dividend

5.1 Amount

EDPR has a yearly dividend return of 0.71%, which is pretty low.
The stock price of EDPR dropped by -32.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.14, EDPR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, EDPR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.71%

5.2 History

On average, the dividend of EDPR grows each year by 8.51%, which is quite nice.
Dividend Growth(5Y)8.51%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

18.60% of the earnings are spent on dividend by EDPR. This is a low number and sustainable payout ratio.
EDPR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.6%
EPS Next 2Y-9.58%
EPS Next 3Y-0.47%

EDP RENOVAVEIS SA

ELI:EDPR (3/28/2024, 7:00:00 PM)

12.545

-0.36 (-2.79%)

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 Cap12.85B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.71%
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 RankSector Rank
PE 14.59
Fwd PE 22.8
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)N/A
PEG (5Y)0.97
Profitability
Industry RankSector Rank
ROA 3.03%
ROE 9.23%
ROCE
ROIC
ROICexc
ROICexgc
OM 38.59%
PM (TTM) 24.19%
GM 82.24%
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 Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.65
Quick Ratio 0.6
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)16.14%
EPS 3Y5.06%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.6%
Revenue growth 3Y9.15%
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