EDP - Energias de Portugal's (ELI:EDP) Profits May Not Reveal Underlying Issues
Mar 18
Portuguese (PSI) Utilities Sector Analysis
UpdatedApr 18, 2024
DataAggregated Company Financials
Companies4
- 7D2.6%
- 3M-15.0%
- 1Y-31.5%
- YTD-22.9%
The Utilities industry is up 3.4% in the last week, with EDP Renováveis up 4.9%. In contrast, the industry has lost 31% in the last 12 months. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the Portuguese Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 18 Apr 2024 | €30.7b | €19.5b | €1.4b | 29x | 21.5x | 1.6x |
| Sat, 16 Mar 2024 | €31.1b | €19.5b | €1.4b | 29.7x | 21.9x | 1.6x |
| Mon, 12 Feb 2024 | €32.7b | €20.4b | €1.7b | 23.8x | 19.6x | 1.6x |
| Wed, 10 Jan 2024 | €39.4b | €20.4b | €1.7b | 29.1x | 23.6x | 1.9x |
| Fri, 08 Dec 2023 | €39.3b | €20.4b | €1.7b | 29.2x | 23.5x | 1.9x |
| Sun, 05 Nov 2023 | €37.1b | €22.0b | €1.4b | 30.6x | 26.9x | 1.7x |
| Tue, 03 Oct 2023 | €34.6b | €22.0b | €1.4b | 27.8x | 25.1x | 1.6x |
| Thu, 31 Aug 2023 | €37.9b | €22.0b | €1.4b | 31.4x | 27.3x | 1.7x |
| Sat, 29 Jul 2023 | €38.3b | €22.9b | €1.6b | 29.2x | 23.5x | 1.7x |
| Mon, 26 Jun 2023 | €40.1b | €23.0b | €1.8b | 24.2x | 22.2x | 1.7x |
| Wed, 24 May 2023 | €42.2b | €23.0b | €1.8b | 25.5x | 23.3x | 1.8x |
| Fri, 21 Apr 2023 | €43.3b | €23.8b | €1.4b | 31.5x | 30.4x | 1.8x |
| Sun, 19 Mar 2023 | €41.5b | €23.8b | €1.4b | 30.2x | 29.1x | 1.7x |
| Tue, 14 Feb 2023 | €40.0b | €24.0b | €1.7b | 24x | 23.3x | 1.7x |
| Thu, 12 Jan 2023 | €42.5b | €24.0b | €1.7b | 25.6x | 24.8x | 1.8x |
| Sat, 10 Dec 2022 | €41.6b | €24.0b | €1.7b | 24.8x | 24.2x | 1.7x |
| Mon, 07 Nov 2022 | €40.3b | €23.8b | €1.6b | 26x | 25.9x | 1.7x |
| Wed, 05 Oct 2022 | €42.1b | €22.0b | €1.5b | 28.3x | 27.9x | 1.9x |
| Fri, 02 Sep 2022 | €44.8b | €22.0b | €1.5b | 30x | 29.6x | 2x |
| Sun, 31 Jul 2022 | €46.7b | €20.4b | €1.3b | 39.9x | 36.2x | 2.3x |
| Tue, 28 Jun 2022 | €42.1b | €20.1b | €1.2b | 38x | 35.4x | 2.1x |
| Thu, 26 May 2022 | €43.8b | €20.0b | €1.2b | 39.7x | 36.8x | 2.2x |
| Sat, 23 Apr 2022 | €42.6b | €17.5b | €1.4b | 30.4x | 30.1x | 2.4x |
| Mon, 21 Mar 2022 | €41.7b | €17.5b | €1.4b | 29.9x | 29.3x | 2.4x |
| Wed, 16 Feb 2022 | €35.6b | €15.7b | €1.4b | 31.3x | 25.6x | 2.3x |
| Fri, 14 Jan 2022 | €39.4b | €15.7b | €1.4b | 34.8x | 28.4x | 2.5x |
| Sun, 12 Dec 2021 | €42.0b | €15.7b | €1.4b | 37.5x | 30.3x | 2.7x |
| Tue, 09 Nov 2021 | €42.9b | €15.7b | €1.4b | 35x | 29.6x | 2.7x |
| Thu, 07 Oct 2021 | €39.9b | €14.7b | €1.4b | 33.1x | 28.8x | 2.7x |
| Sat, 04 Sep 2021 | €43.5b | €14.7b | €1.4b | 36.3x | 31.3x | 3x |
| Mon, 02 Aug 2021 | €39.1b | €14.7b | €1.4b | 32.2x | 28.2x | 2.7x |
| Thu, 06 May 2021 | €38.9b | €14.3b | €1.5b | 21.9x | 26.4x | 2.7x |
Price to Earnings Ratio
26.4x
Current Industry PE
- Investors are pessimistic on the Portuguese Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 21.4x which is lower than its 3-year average PE of 27.1x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 11% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Portuguese Utilities sector?
| PT Market | -0.06% | |
| Utilities | 2.57% | |
| Electric Utilities | 2.66% | |
| Renewable Energy | 2.66% | |
| Other Utilities | 0.92% | |
| Gas Utilities | 0% | |
| Water Utilities | 0% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 36.8x.
- Analysts are expecting annual earnings growth of 22.6%, which is higher than its past year's earnings decline of 48.1% per year.
- Investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 15.2x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings decline of 48% per year.
- In contrast, the Other Utilities industry is expected to see its earnings decline by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| EDP EDP - Energias de Portugal | €3.59 | 2.7% +€387.0m | -30.1% | PE15.7x | |
| EDPR EDP Renováveis | €12.79 | 2.9% +€368.6m | -36.8% | PE42.4x | |
| RENE REN - Redes Energéticas Nacionais SGPS | €2.20 | 0.9% +€13.3m | -18.2% | PE9.8x |
