DB:PWD1

Stock Analysis Report

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima

Executive Summary

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima, a public service company, engages in the distribution and sale of electricity in Argentina.

Rewards

Trading at 94.5% below its fair value

Earnings are forecast to grow 21.34% per year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Very undervalued with high growth potential.

Share Price & News

How has Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PWD1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

PWD1

2.7%

DE Electric Utilities

0.3%

DE Market


1 Year Return

-79.6%

PWD1

25.4%

DE Electric Utilities

13.8%

DE Market

Return vs Industry: PWD1 underperformed the German Electric Utilities industry which returned 19% over the past year.

Return vs Market: PWD1 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

PWD1IndustryMarket
7 Day0.8%2.7%0.3%
30 Day-20.6%6.3%1.3%
90 Day-3.5%12.4%5.2%
1 Year-79.6%-79.6%30.3%25.4%17.4%13.8%
3 Year-82.6%-82.6%76.7%53.9%15.9%5.7%
5 Year-44.0%-44.0%61.8%25.2%27.9%10.6%

Price Volatility Vs. Market

How volatile is Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Empresa Distribuidora y Comercializadora Norte Sociedad Anónima undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PWD1 (€5) is trading below our estimate of fair value (€90.15)

Significantly Below Fair Value: PWD1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PWD1 is good value based on its PE Ratio (2.2x) compared to the Electric Utilities industry average (13.5x).

PE vs Market: PWD1 is good value based on its PE Ratio (2.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: PWD1 is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: PWD1 is good value based on its PB Ratio (0.4x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Empresa Distribuidora y Comercializadora Norte Sociedad Anónima forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWD1's forecast earnings growth (21.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: PWD1's earnings (21.3% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PWD1's revenue (19.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: PWD1's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PWD1's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Empresa Distribuidora y Comercializadora Norte Sociedad Anónima performed over the past 5 years?

62.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PWD1 has a high level of non-cash earnings.

Growing Profit Margin: PWD1's current net profit margins (16.6%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: PWD1 has become profitable over the past 5 years, growing earnings by 62.3% per year.

Accelerating Growth: PWD1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PWD1 had negative earnings growth (-16.4%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.7%).


Return on Equity

High ROE: PWD1's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's financial position?


Financial Position Analysis

Short Term Liabilities: PWD1's short term assets (ARS20.1B) do not cover its short term liabilities (ARS22.7B).

Long Term Liabilities: PWD1's short term assets (ARS20.1B) do not cover its long term liabilities (ARS33.1B).


Debt to Equity History and Analysis

Debt Level: PWD1's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: PWD1 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: PWD1's debt is well covered by operating cash flow (23.9%).

Interest Coverage: PWD1's interest payments on its debt are not well covered by EBIT (0x coverage).


Balance Sheet

Inventory Level: PWD1 has a high level of physical assets or inventory.

Debt Coverage by Assets: PWD1's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's current dividend yield, its reliability and sustainability?

19.76%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.6%forecastin3Years19.8%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PWD1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PWD1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PWD1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PWD1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PWD1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Ricardo Torres (61yo)

4.5yrs

Tenure

0

Mr. Ricardo Alejandro Torres is a Co-Founder of Pampa Energía S.A. and had been its Chief Executive Officer since November 2005 until December 2018 and served as its Chief Financial Officer & Chief of Dist ...


Management Age and Tenure

7.7yrs

Average Tenure

55yo

Average Age

Experienced Management: PWD1's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

Experienced Board: PWD1's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eduardo Abel Maggi (64yo)

    Director of Operations

    • Tenure: 2yrs
  • Ricardo Torres (61yo)

    Chairman & CEO

    • Tenure: 4.5yrs
  • Ariel Schapira (57yo)

    Digital Transformation Director

    • Tenure: 0.8yrs
  • Victor Augusto Ruiz (60yo)

    Principal Accounting Officer

    • Daniel Flaks (55yo)

      Technical Director

      • Tenure: 8yrs
    • Leandro Carlos Montero (43yo)

      Chief Financial Officer

      • Tenure: 8yrs
    • Gerardo Tabakman (44yo)

      Customer Services Director

      • Tenure: 2yrs
    • Carlos Dionisio Ariosa (53yo)

      Legal Affairs Manager

      • Tenure: 2yrs
    • Mariana De La Fuente (51yo)

      Director of Human Resources

      • Tenure: 5.5yrs

    Board Members

    • María Carolina Sigwald (52yo)

      Director

      • Tenure: 4yrs
    • Gustavo Mariani (49yo)

      Vice Chairman

      • Tenure: 7yrs
    • Diego Martín Salaverri (55yo)

      Director

      • Tenure: 0.8yrs
    • Eduardo Abel Maggi (64yo)

      Director of Operations

      • Tenure: 2yrs
    • Ricardo Torres (61yo)

      Chairman & CEO

      • Tenure: 4.5yrs
    • Ariel Schapira (57yo)

      Digital Transformation Director

      • Tenure: 0.8yrs
    • Daniel Flaks (55yo)

      Technical Director

      • Tenure: 8yrs
    • Leandro Carlos Montero (43yo)

      Chief Financial Officer

      • Tenure: 8yrs
    • Gerardo Tabakman (44yo)

      Customer Services Director

      • Tenure: 2yrs
    • Carlos Dionisio Ariosa (53yo)

      Legal Affairs Manager

      • Tenure: 2yrs

    Company Information

    Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Empresa Distribuidora y Comercializadora Norte Sociedad Anónima
    • Ticker: PWD1
    • Exchange: DB
    • Founded: 1992
    • Industry: Electric Utilities
    • Sector: Utilities
    • Market Cap: AR$19.383b
    • Listing Market Cap: AR$292.500m
    • Shares outstanding: 875.07m
    • Website: https://www.edenor.com.ar

    Number of Employees


    Location

    • Empresa Distribuidora y Comercializadora Norte Sociedad Anónima
    • Avenida del Libertador 6363
    • Piso 1
    • Buenos Aires
    • Capital Federal
    • C1428ARG
    • Argentina

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PWD1DB (Deutsche Boerse AG)ADR EACH REP 20 CLASS 'B' ARS1DEEURApr 2007
    EDNNYSE (New York Stock Exchange)ADR EACH REP 20 CLASS 'B' ARS1USUSDApr 2007
    EDNBASE (Buenos Aires Stock Exchange)YesClass B SharesARARSJul 2007

    Biography

    Empresa Distribuidora y Comercializadora Norte Sociedad Anónima, a public service company, engages in the distribution and sale of electricity in Argentina. It serves approximately 8.5 million people in the northwestern part of the greater Buenos Aires metropolitan area and the northern part of the City of Buenos Aires through the concession of 4,637 square kilometers. The company was formerly known as Empresa Distribuidora Norte Sociedad Anónima and changed its name to Empresa Distribuidora y Comercializadora Norte Sociedad Anónima in June 1996. The company was founded in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is a subsidiary of Pampa Energía S.A. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 21:14
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.