EDP SA (EDP.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:EDP - PTEDP0AM0009 - Common Stock
3.839 EUR
-0.01 (-0.18%)
Taking everything into account, EDP scores 3 out of 10 in our fundamental rating. EDP was compared to 29 industry peers in the Electric Utilities industry. While EDP is still in line with the averages on profitability rating, there are concerns on its financial health. EDP has a correct valuation and a medium growth rate. Finally 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.
Each year in the past 5 years EDP has been profitable.
In the past 5 years EDP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.39%, EDP is doing worse than 89.66% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.95%, EDP is doing worse than 86.21% of the companies in the same industry.
EDP has a worse Return On Invested Capital (3.21%) than 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EDP is below the industry average of 6.11%.
The last Return On Invested Capital (3.21%) for EDP is above the 3 year average (3.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| ROIC | 3.21% |
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
EDP has a worse Profit Margin (4.84%) than 79.31% of its industry peers.
EDP's Profit Margin has improved in the last couple of years.
The Operating Margin of EDP (12.97%) is worse than 75.86% of its industry peers.
EDP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 43.15%, EDP is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
EDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 4.84% | ||
| GM | 43.15% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EDP is destroying value.
The number of shares outstanding for EDP has been increased compared to 1 year ago.
EDP has more shares outstanding than it did 5 years ago.
EDP has a worse debt/assets ratio than last year.
2.2 Solvency
EDP has an Altman-Z score of 0.81. This is a bad value and indicates that EDP is not financially healthy and even has some risk of bankruptcy.
EDP has a Altman-Z score of 0.81. This is in the lower half of the industry: EDP underperforms 79.31% of its industry peers.
A Debt/Equity ratio of 1.77 is on the high side and indicates that EDP has dependencies on debt financing.
EDP has a worse Debt to Equity ratio (1.77) than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.61
WACC5.22%
2.3 Liquidity
A Current Ratio of 0.98 indicates that EDP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, EDP is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that EDP may have some problems paying its short term obligations.
EDP's Quick ratio of 0.93 is fine compared to the rest of the industry. EDP outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for EDP have decreased strongly by -41.18% in the last year.
The Earnings Per Share has been growing by 8.36% on average over the past years. This is quite good.
Looking at the last year, EDP shows a decrease in Revenue. The Revenue has decreased by -7.63% in the last year.
Measured over the past years, EDP shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)-41.18%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-25%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%3.55%
3.2 Future
The Earnings Per Share is expected to grow by 11.79% on average over the next years. This is quite good.
Based on estimates for the next years, EDP will show a small growth in Revenue. The Revenue will grow by 0.78% on average per year.
EPS Next Y49.63%
EPS Next 2Y22.53%
EPS Next 3Y15.08%
EPS Next 5Y11.79%
Revenue Next Year-1.11%
Revenue Next 2Y-0.42%
Revenue Next 3Y0.62%
Revenue Next 5Y0.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.99, EDP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of EDP indicates a rather expensive valuation: EDP more expensive than 86.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. EDP is around the same levels.
A Price/Forward Earnings ratio of 12.79 indicates a correct valuation of EDP.
Based on the Price/Forward Earnings ratio, EDP is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.56. EDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 12.79 |
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.
A more expensive valuation may be justified as EDP's earnings are expected to grow with 15.08% in the coming years.
PEG (NY)0.48
PEG (5Y)2.87
EPS Next 2Y22.53%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
EDP has a Yearly Dividend Yield of 5.24%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, EDP pays a better dividend. On top of this EDP pays more dividend than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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
110.52% 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.
DP110.52%
EPS Next 2Y22.53%
EPS Next 3Y15.08%
ELI:EDP (12/1/2025, 10:54:37 AM)
3.839
-0.01 (-0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.7%
Inst Owner ChangeN/A
Ins Owners6.84%
Ins Owner ChangeN/A
Market Cap16.06B
Revenue(TTM)14.97B
Net Income(TTM)747.80M
Analysts75.38
Price Target4.59 (19.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend0.2
Dividend Growth(5Y)1.06%
DP110.52%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.87%
Min EPS beat(2)-11.71%
Max EPS beat(2)41.44%
EPS beat(4)1
Avg EPS beat(4)-119.57%
Min EPS beat(4)-496.04%
Max EPS beat(4)41.44%
EPS beat(8)4
Avg EPS beat(8)-58.43%
EPS beat(12)5
Avg EPS beat(12)-47.66%
EPS beat(16)7
Avg EPS beat(16)-35.42%
Revenue beat(2)2
Avg Revenue beat(2)5.69%
Min Revenue beat(2)1.39%
Max Revenue beat(2)9.98%
Revenue beat(4)2
Avg Revenue beat(4)-16.18%
Min Revenue beat(4)-70.83%
Max Revenue beat(4)9.98%
Revenue beat(8)2
Avg Revenue beat(8)-22.25%
Revenue beat(12)3
Avg Revenue beat(12)-17.4%
Revenue beat(16)6
Avg Revenue beat(16)-6.45%
PT rev (1m)5.11%
PT rev (3m)7.29%
EPS NQ rev (1m)-15.64%
EPS NQ rev (3m)-15.64%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 12.79 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | 3.6 | ||
| P/B | 1.49 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.16
EY4.17%
EPS(NY)0.3
Fwd EY7.82%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)1.07
OCFY27.79%
SpS3.69
BVpS2.57
TBVpS0.7
PEG (NY)0.48
PEG (5Y)2.87
Graham Number3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 6.95% | ||
| ROCE | 4.7% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 4.22% | ||
| OM | 12.97% | ||
| PM (TTM) | 4.84% | ||
| GM | 43.15% | ||
| 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%
ROICexgc growth 3Y10.82%
ROICexgc 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 3Y11.93%
GM growth 5Y4.76%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 34.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 0.81 |
F-Score5
WACC5.22%
ROIC/WACC0.61
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)-41.18%
EPS 3Y5.16%
EPS 5Y8.36%
EPS Q2Q%-25%
EPS Next Y49.63%
EPS Next 2Y22.53%
EPS Next 3Y15.08%
EPS Next 5Y11.79%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%3.55%
Revenue Next Year-1.11%
Revenue Next 2Y-0.42%
Revenue Next 3Y0.62%
Revenue Next 5Y0.78%
EBIT growth 1Y-8.18%
EBIT growth 3Y16.36%
EBIT growth 5Y0.87%
EBIT Next Year72.29%
EBIT Next 3Y20.73%
EBIT Next 5Y13.7%
FCF growth 1Y80%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y196.9%
OCF growth 3Y27.86%
OCF growth 5Y13.54%
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.
Can you provide the valuation status for EDP SA?
ChartMill assigns a valuation rating of 4 / 10 to EDP SA (EDP.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for EDP SA?
EDP SA (EDP.LS) has a profitability rating of 4 / 10.
What is the valuation of EDP SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EDP SA (EDP.LS) is 23.99 and the Price/Book (PB) ratio is 1.49.
Is the dividend of EDP SA sustainable?
The dividend rating of EDP SA (EDP.LS) is 7 / 10 and the dividend payout ratio is 110.52%.