EDP SA (EDP.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:EDP - PTEDP0AM0009 - Common Stock
4.054 EUR
-0.04 (-1%)
Taking everything into account, EDP scores 3 out of 10 in our fundamental rating. EDP was compared to 28 industry peers in the Electric Utilities industry. There are concerns on the financial health of EDP while its profitability can be described as average. 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.
In the past 5 years EDP has always been profitable.
EDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EDP (1.39%) is worse than 85.71% of its industry peers.
With a Return On Equity value of 6.95%, EDP is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.21%, EDP is doing worse than 75.00% 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 below the industry average of 6.81%.
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 Profit Margin of 4.84%. This is in the lower half of the industry: EDP underperforms 75.00% of its industry peers.
EDP's Profit Margin has improved in the last couple of years.
EDP's Operating Margin of 12.97% is on the low side compared to the rest of the industry. EDP is outperformed by 75.00% of its industry peers.
EDP's Operating Margin has been stable in the last couple of years.
EDP has a Gross Margin of 43.15%. This is in the lower half of the industry: EDP underperforms 67.86% of its industry peers.
In the last couple of years the Gross Margin of EDP has grown nicely.
| 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
EDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that EDP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, EDP is doing worse than 78.57% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that EDP has dependencies on debt financing.
EDP has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: EDP underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACC0.61
WACC5.27%
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 67.86% of the companies in the same industry.
EDP has a Quick Ratio of 0.98. 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 Quick ratio of EDP (0.93) is better than 67.86% 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.
EDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.36% yearly.
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.
EDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.78% yearly.
EPS Next Y46.37%
EPS Next 2Y22%
EPS Next 3Y15.19%
EPS Next 5Y11.79%
Revenue Next Year0.38%
Revenue Next 2Y0.34%
Revenue Next 3Y0.94%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.34 indicates a quite expensive valuation of EDP.
Compared to the rest of the industry, the Price/Earnings ratio of EDP indicates a rather expensive valuation: EDP more expensive than 82.14% 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 27.00, which is the current average of the S&P500 Index.
EDP is valuated correctly with a Price/Forward Earnings ratio of 13.62.
Based on the Price/Forward Earnings ratio, EDP is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
EDP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as EDP's earnings are expected to grow with 15.19% in the coming years.
PEG (NY)0.55
PEG (5Y)3.03
EPS Next 2Y22%
EPS Next 3Y15.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.11%, EDP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, EDP pays a better dividend. On top of this EDP pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, EDP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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%
EPS Next 3Y15.19%
ELI:EDP (1/8/2026, 5:35:15 PM)
4.054
-0.04 (-1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.92%
Inst Owner ChangeN/A
Ins Owners6.84%
Ins Owner ChangeN/A
Market Cap16.96B
Revenue(TTM)14.97B
Net Income(TTM)747.80M
Analysts74.07
Price Target4.57 (12.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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)-0.37%
PT rev (3m)4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.64%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 13.62 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 3.8 | ||
| P/B | 1.58 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.16
EY3.95%
EPS(NY)0.3
Fwd EY7.34%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)1.07
OCFY26.31%
SpS3.69
BVpS2.57
TBVpS0.7
PEG (NY)0.55
PEG (5Y)3.03
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 | 0.82 |
F-Score5
WACC5.27%
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 Y46.37%
EPS Next 2Y22%
EPS Next 3Y15.19%
EPS Next 5Y11.79%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.87%
Sales Q2Q%3.55%
Revenue Next Year0.38%
Revenue Next 2Y0.34%
Revenue Next 3Y0.94%
Revenue Next 5Y0.78%
EBIT growth 1Y-8.18%
EBIT growth 3Y16.36%
EBIT growth 5Y0.87%
EBIT Next Year72.78%
EBIT Next 3Y21.31%
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.
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 4 / 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 46.37% 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 110.52%.