ENXTLS:EDP

Stock Analysis Report

EDP - Energias de Portugal

Executive Summary

EDP - Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has EDP - Energias de Portugal's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.5%

EDP

2.2%

PT Electric Utilities

2.2%

PT Market


1 Year Return

50.0%

EDP

33.6%

PT Electric Utilities

16.0%

PT Market

Return vs Industry: EDP exceeded the Portuguese Electric Utilities industry which returned 33.6% over the past year.

Return vs Market: EDP exceeded the Portuguese Market which returned 16% over the past year.


Shareholder returns

EDPIndustryMarket
7 Day3.5%2.2%2.2%
30 Day13.4%7.2%5.7%
90 Day33.6%20.2%10.7%
1 Year59.2%50.0%38.8%33.6%21.3%16.0%
3 Year102.4%69.0%87.7%63.5%43.1%26.2%
5 Year85.4%38.3%68.4%30.2%21.4%-52.4%

Price Volatility Vs. Market

How volatile is EDP - Energias de Portugal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EDP - Energias de Portugal undervalued compared to its fair value and its price relative to the market?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDP (€4.88) is trading below our estimate of fair value (€9.05)

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


Price To Earnings Ratio

PE vs Industry: EDP is poor value based on its PE Ratio (34.6x) compared to the Electric Utilities industry average (13.5x).

PE vs Market: EDP is poor value based on its PE Ratio (34.6x) compared to the Portuguese market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: EDP is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: EDP is overvalued based on its PB Ratio (2x) compared to the XE Electric Utilities industry average (1x).


Next Steps

Future Growth

How is EDP - Energias de Portugal forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDP's forecast earnings growth (10.4% per year) is above the savings rate (0.4%).

Earnings vs Market: EDP's earnings (10.4% per year) are forecast to grow faster than the Portuguese market (8% per year).

High Growth Earnings: EDP's earnings are forecast to grow, but not significantly.

Revenue vs Market: EDP's revenue (4.1% per year) is forecast to grow slower than the Portuguese market (4.3% per year).

High Growth Revenue: EDP's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDP's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has EDP - Energias de Portugal performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDP has a large one-off loss of €438.0M impacting its December 31 2019 financial results.

Growing Profit Margin: EDP's current net profit margins (3.6%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: EDP's earnings have declined by -11.5% per year over the past 5 years.

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

Earnings vs Industry: EDP had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Electric Utilities industry average (6%).


Return on Equity

High ROE: EDP's Return on Equity (7.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EDP - Energias de Portugal's financial position?


Financial Position Analysis

Short Term Liabilities: EDP's short term assets (€2.0B) do not cover its short term liabilities (€4.1B).

Long Term Liabilities: EDP's short term assets (€2.0B) do not cover its long term liabilities (€25.6B).


Debt to Equity History and Analysis

Debt Level: EDP's debt to equity ratio (130.6%) is considered high.

Reducing Debt: EDP's debt to equity ratio has reduced from 172.3% to 130.6% over the past 5 years.

Debt Coverage: EDP's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: EDP's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: EDP's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is EDP - Energias de Portugal's current dividend yield, its reliability and sustainability?

3.90%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.8%markettop25%6.6%industryaverage3.5%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: EDP's dividend (3.9%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.78%).

High Dividend: EDP's dividend (3.9%) is low compared to the top 25% of dividend payers in the Portuguese market (6.57%).


Stability and Growth of Payments

Stable Dividend: EDP's dividends per share have been stable in the past 10 years.

Growing Dividend: EDP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134.9%), EDP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EDP's dividends in 3 years are forecast to be covered by earnings (78.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.1yrs

Average management tenure


CEO

António Luís Guerra Nunes Mexia (62yo)

€2,198,892

Compensation

Mr. Antonio Luis Guerra Nunes Mexia serves as the Chief Executive Officer of EDP-Energias de Portugal, S.A. and serves as its Chairman of the Board since March 30, 2006. Mr. Mexia served as the President o ...


CEO Compensation Analysis

Compensation vs Market: António Luís Guerra's total compensation ($USD2.39M) is below average for companies of similar size in the Portuguese market ($USD3.59M).

Compensation vs Earnings: António Luís Guerra's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
António Luís Guerra Nunes Mexia
Chairman of the Board of Executive Directors & CEO0yrs€2.20m0.0025% 443.3k
Miguel de Andrade
CFO & Member of Executive Board of Directors8yrs€1.38m0.0039% 682.7k
Maria Teresa Pereira
Head of Legal Office & Member of the Executive Board of Directors1.8yrs€433.66k0.0020% 347.5k
Miguel Viana
Head of Investor Relations0yrsno datano data
Azucena Viñuela Hernández
Head of Internal Audit & Compliance Department0yrsno datano data
Paulo Costa
Head of Brand14.1yrsno datano data
José Santos
Head of Organisational Development Department0yrsno datano data
Paula Carneiro
Head of Human Resources Department6.4yrsno datano data
Maria Mano Pinto Simões
Head of Markets and Regulation Department0yrsno datano data
Miguel Ferreira
Head of Consolidation & IFRS Reporting Global Coordination Department0yrsno datano data

14.1yrs

Average Tenure

54yo

Average Age

Experienced Management: EDP's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
António Luís Guerra Nunes Mexia
Chairman of the Board of Executive Directors & CEO0yrs€2.20m0.0025% 443.3k
Miguel de Andrade
CFO & Member of Executive Board of Directors8yrs€1.38m0.0039% 682.7k
Maria Teresa Pereira
Head of Legal Office & Member of the Executive Board of Directors1.8yrs€433.66k0.0020% 347.5k
João Manuel Manso Neto
Member of the Executive Board of Directors13.9yrs€1.47m0.000030% 5.3k
Antonio Fernando Melo da Costa
Member of the Executive Board of Directors13.9yrs€1.13m0.0015% 264.2k
Dingming Zhang
Vice Chairman of General & Supervisory Board7.8yrs€204.40kno data
Shengliang Wu
Member of General & Supervisory Board8yrs€41.96kno data
Luís Filipe Amado
Chairman of General & Supervisory Board1.8yrs€405.33kno data
João Carlos Carvalho Neves
Independent Member of General & Supervisory Board4.8yrs€111.08k0.00020% 35.5k
José Viegas
President of Environment & Sustainability Board1.8yrsno datano data

7.9yrs

Average Tenure

61yo

Average Age

Experienced Board: EDP's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

EDP - Energias de Portugal, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EDP - Energias de Portugal, S.A.
  • Ticker: EDP
  • Exchange: ENXTLS
  • Founded: 1976
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €17.732b
  • Shares outstanding: 3.64b
  • Website: https://www.edp.com/en

Number of Employees


Location

  • EDP - Energias de Portugal, S.A.
  • Avenida 24 de Julho, nº 12
  • 4º Piso
  • Lisbon
  • Lisbon
  • 1249-300
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDPF.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 10 ORD EUR1USUSDJun 1997
EDPABST (Boerse-Stuttgart)SPON ADR EACH REPR 10 ORD EUR1DEEURJun 1997
EDPENXTLS (Euronext Lisbon)YesCategory A Ordinary SharesPTEURJun 1997
EDPDB (Deutsche Boerse AG)YesCategory A Ordinary SharesDEEURJun 1997
0OF7LSE (London Stock Exchange)YesCategory A Ordinary SharesGBEURJun 1997
EDPUBATS-CHIXE (BATS 'Chi-X Europe')YesCategory A Ordinary SharesGBEURJun 1997
EDPSWX (SIX Swiss Exchange)YesCategory A Ordinary SharesCHCHFJun 1997
EDPETLX (Eurotlx)YesCategory A Ordinary SharesITEURJun 1997
ELCP.FOTCPK (Pink Sheets LLC)Category B Ordinary SharesUSUSDNov 2004

Biography

EDP - Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Generation and Supply in Iberia, Regulated Networks in Iberia, EDP Renováveis, and EDP Brasil segments. The company primarily generates electricity through hydro, CCGT, coal, mini-hydro, wind, solar, nuclear, and cogeneration sources. It also distributes and supplies gas. The company has an installed capacity of 27 GW; and serves 9,848,384 electricity customers and 1,595,347 gas customers. It also operates 285,121 kilometers of distribution overhead lines; and 54,056 kilometers of distribution underground lines. In addition, the company offers engineering, laboratory tests, professional training, energy, and property management services. EDP - Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:14
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.