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EDP SA (EDP.LS) Stock Fundamental Analysis

ELI:EDP - Euronext Lisbon - PTEDP0AM0009 - Common Stock - Currency: EUR

3.345  0 (-0.09%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to EDP. EDP was compared to 17 industry peers in the Electric Utilities industry. Both the profitability and financial health of EDP have multiple concerns. EDP has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
EDP had positive earnings in each of the past 5 years.
EDP had a positive operating cash flow in each of the past 5 years.
EDP.LS Yearly Net Income VS EBIT VS OCF VS FCFEDP.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B

1.2 Ratios

The Return On Assets of EDP (1.42%) is worse than 82.35% of its industry peers.
The Return On Equity of EDP (6.94%) is worse than 76.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.91%, EDP is doing worse than 76.47% of the companies in the same industry.
EDP had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 9.46%.
Industry RankSector Rank
ROA 1.42%
ROE 6.94%
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%
EDP.LS Yearly ROA, ROE, ROICEDP.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 5.35%, EDP is doing worse than 64.71% of the companies in the same industry.
EDP's Profit Margin has improved in the last couple of years.
The Operating Margin of EDP (12.94%) is worse than 64.71% of its industry peers.
EDP's Operating Margin has been stable in the last couple of years.
EDP has a Gross Margin of 43.90%. This is comparable to the rest of the industry: EDP outperforms 47.06% of its industry peers.
In the last couple of years the Gross Margin of EDP has remained more or less at the same level.
Industry RankSector Rank
OM 12.94%
PM (TTM) 5.35%
GM 43.9%
OM growth 3Y16.41%
OM growth 5Y0%
PM growth 3Y6.88%
PM growth 5Y8.43%
GM growth 3Y5.51%
GM growth 5Y1.11%
EDP.LS Yearly Profit, Operating, Gross MarginsEDP.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDP is destroying value.
Compared to 1 year ago, EDP has more shares outstanding
Compared to 5 years ago, EDP has more shares outstanding
The debt/assets ratio for EDP is higher compared to a year ago.
EDP.LS Yearly Shares OutstandingEDP.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
EDP.LS Yearly Total Debt VS Total AssetsEDP.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

Based on the Altman-Z score of 0.76, we must say that EDP is in the distress zone and 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 76.47% of its industry peers.
EDP has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.74, EDP is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Altman-Z 0.76
ROIC/WACC0.57
WACC5.13%
EDP.LS Yearly LT Debt VS Equity VS FCFEDP.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

EDP has a Current Ratio of 1.09. This is a normal value and indicates that EDP is financially healthy and should not expect problems in meeting its short term obligations.
EDP's Current ratio of 1.09 is fine compared to the rest of the industry. EDP outperforms 70.59% of its industry peers.
A Quick Ratio of 1.04 indicates that EDP should not have too much problems paying its short term obligations.
The Quick ratio of EDP (1.04) is better than 64.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.04
EDP.LS Yearly Current Assets VS Current LiabilitesEDP.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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2

3. Growth

3.1 Past

The earnings per share for EDP have decreased strongly by -17.36% 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.
Looking at the last year, EDP shows a decrease in Revenue. The Revenue has decreased by -7.63% in the last 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)-17.36%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-3600%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%5.11%

3.2 Future

EDP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.39% yearly.
Based on estimates for the next years, EDP will show a decrease in Revenue. The Revenue will decrease by -2.28% on average per year.
EPS Next Y47.08%
EPS Next 2Y21.96%
EPS Next 3Y13.59%
EPS Next 5Y7.39%
Revenue Next Year5.52%
Revenue Next 2Y2.38%
Revenue Next 3Y-1.59%
Revenue Next 5Y-2.28%

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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
EDP.LS Yearly Revenue VS EstimatesEDP.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
EDP.LS Yearly EPS VS EstimatesEDP.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.1 0.2 0.3

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.73, which indicates a correct valuation of EDP.
EDP's Price/Earnings ratio is in line with the industry average.
EDP is valuated rather cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
EDP is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
EDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. EDP is cheaper than 82.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. EDP is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.73
Fwd PE 11.37
EDP.LS Price Earnings VS Forward Price EarningsEDP.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
EDP.LS Per share dataEDP.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

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 13.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)2
EPS Next 2Y21.96%
EPS Next 3Y13.59%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.97%, EDP is a good candidate for dividend investing.
EDP's Dividend Yield is a higher than the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.51, EDP pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.97%

5.2 History

The dividend of EDP has a limited annual growth rate of 1.06%.
Dividend Growth(5Y)1.06%
Div Incr Years1
Div Non Decr Years3
EDP.LS Yearly Dividends per shareEDP.LS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.05 0.1 0.15

5.3 Sustainability

EDP pays out 101.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.34%
EPS Next 2Y21.96%
EPS Next 3Y13.59%
EDP.LS Yearly Income VS Free CF VS DividendEDP.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B
EDP.LS Dividend Payout.EDP.LS Dividend Payout, showing the Payout Ratio.EDP.LS Dividend Payout.PayoutRetained Earnings

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EDP SA

ELI:EDP (4/25/2025, 9:05:59 AM)

3.345

0 (-0.09%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)03-14 2025-03-14/amc
Earnings (Next)05-09 2025-05-09
Inst Owners38.22%
Inst Owner ChangeN/A
Ins Owners6.83%
Ins Owner ChangeN/A
Market Cap14.00B
Analysts75.2
Price Target4.08 (21.97%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.97%
Yearly Dividend0.2
Dividend Growth(5Y)1.06%
DP101.34%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-254.01%
Min EPS beat(2)-496.04%
Max EPS beat(2)-11.99%
EPS beat(4)2
Avg EPS beat(4)-115.97%
Min EPS beat(4)-496.04%
Max EPS beat(4)26.13%
EPS beat(8)3
Avg EPS beat(8)-67.34%
EPS beat(12)5
Avg EPS beat(12)-49.95%
EPS beat(16)7
Avg EPS beat(16)-36.08%
Revenue beat(2)0
Avg Revenue beat(2)-38.04%
Min Revenue beat(2)-70.83%
Max Revenue beat(2)-5.26%
Revenue beat(4)0
Avg Revenue beat(4)-24.4%
Min Revenue beat(4)-70.83%
Max Revenue beat(4)-5.26%
Revenue beat(8)0
Avg Revenue beat(8)-25.1%
Revenue beat(12)3
Avg Revenue beat(12)-6.36%
Revenue beat(16)4
Avg Revenue beat(16)-9.74%
PT rev (1m)-1.77%
PT rev (3m)-8.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.5%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.44%
Valuation
Industry RankSector Rank
PE 16.73
Fwd PE 11.37
P/S 0.94
P/FCF N/A
P/OCF 3.34
P/B 1.21
P/tB 4.03
EV/EBITDA N/A
EPS(TTM)0.2
EY5.98%
EPS(NY)0.29
Fwd EY8.79%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)1
OCFY29.94%
SpS3.58
BVpS2.76
TBVpS0.83
PEG (NY)0.36
PEG (5Y)2
Profitability
Industry RankSector Rank
ROA 1.42%
ROE 6.94%
ROCE 4.27%
ROIC 2.91%
ROICexc 3.17%
ROICexgc 3.93%
OM 12.94%
PM (TTM) 5.35%
GM 43.9%
FCFM N/A
ROA(3y)1.42%
ROA(5y)1.48%
ROE(3y)7.61%
ROE(5y)7.64%
ROIC(3y)3.2%
ROIC(5y)2.94%
ROICexc(3y)3.53%
ROICexc(5y)3.23%
ROICexgc(3y)4.47%
ROICexgc(5y)4.1%
ROCE(3y)4.68%
ROCE(5y)4.31%
ROICexcg growth 3Y10.82%
ROICexcg growth 5Y-4.38%
ROICexc growth 3Y10.98%
ROICexc growth 5Y-4.28%
OM growth 3Y16.41%
OM growth 5Y0%
PM growth 3Y6.88%
PM growth 5Y8.43%
GM growth 3Y5.51%
GM growth 5Y1.11%
F-Score5
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 40.09%
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.09
Quick Ratio 1.04
Altman-Z 0.76
F-Score5
WACC5.13%
ROIC/WACC0.57
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)34.87%
Cap/Sales(5y)31.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.36%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-3600%
EPS Next Y47.08%
EPS Next 2Y21.96%
EPS Next 3Y13.59%
EPS Next 5Y7.39%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%5.11%
Revenue Next Year5.52%
Revenue Next 2Y2.38%
Revenue Next 3Y-1.59%
Revenue Next 5Y-2.28%
EBIT growth 1Y-9.69%
EBIT growth 3Y16.36%
EBIT growth 5Y0.87%
EBIT Next Year70.75%
EBIT Next 3Y20.34%
EBIT Next 5Y10.91%
FCF growth 1Y58.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.71%
OCF growth 3Y27.86%
OCF growth 5Y13.54%