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EDP - Energias de Portugal

ENXTLS:EDP
Snowflake Description

Unattractive dividend payer with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EDP
ENXTLS
€12B
Market Cap
  1. Home
  2. PT
  3. Utilities
Company description

EDP - Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. The last earnings update was 3 days ago. More info.


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EDP Share Price and Events
7 Day Returns
-1%
ENXTLS:EDP
1.9%
Europe Electric Utilities
-0.7%
PT Market
1 Year Returns
-5.8%
ENXTLS:EDP
10%
Europe Electric Utilities
-9.5%
PT Market
EDP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EDP - Energias de Portugal (EDP) -1% -5.5% -0.1% -5.8% 12.2% -8.1%
Europe Electric Utilities 1.9% 2.3% 3.1% 10% 26.9% 0.9%
PT Market -0.7% -4.2% -0.1% -9.5% -30.1% 3.3%
1 Year Return vs Industry and Market
  • EDP underperformed the Electric Utilities industry which returned 10% over the past year.
  • EDP outperformed the Market in Portugal which returned -9.5% over the past year.
Price Volatility
EDP
Industry
5yr Volatility vs Market

EDP Value

 Is EDP - Energias de Portugal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EDP - Energias de Portugal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EDP - Energias de Portugal.

ENXTLS:EDP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year PT Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTLS:EDP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year PT Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.235 (1 + (1- 21%) (140.64%))
0.662
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.82% + (0.8 * 9.02%)
9.04%

Discounted Cash Flow Calculation for ENXTLS:EDP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EDP - Energias de Portugal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTLS:EDP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 9.04%)
2019 1,421.93 Analyst x7 1,304.04
2020 1,361.64 Analyst x7 1,145.23
2021 1,956.50 Analyst x2 1,509.11
2022 -486.00 Analyst x1 -343.79
2023 1,309.00 Analyst x1 849.20
2024 1,129.64 Est @ -13.7% 672.08
2025 1,027.47 Est @ -9.04% 560.62
2026 968.04 Est @ -5.78% 484.40
2027 934.14 Est @ -3.5% 428.69
2028 916.36 Est @ -1.9% 385.66
Present value of next 10 years cash flows €6,995.25
ENXTLS:EDP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €916.36 × (1 + 1.82%) ÷ (9.04% – 1.82%)
€12,930.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €12,930.58 ÷ (1 + 9.04%)10
€5,442.01
ENXTLS:EDP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €6,995.25 + €5,442.01
€12,437.26
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €12,437.26 / 3,634.77
€3.42
ENXTLS:EDP Discount to Share Price
Calculation Result
Value per share (EUR) From above. €3.42
Current discount Discount to share price of €3.26
= -1 x (€3.26 - €3.42) / €3.42
4.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price EDP - Energias de Portugal is available for.
Intrinsic value
5%
Share price is €3.26 vs Future cash flow value of €3.42
Current Discount Checks
For EDP - Energias de Portugal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • EDP - Energias de Portugal's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • EDP - Energias de Portugal's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EDP - Energias de Portugal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EDP - Energias de Portugal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTLS:EDP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.12
ENXTLS:EDP Share Price ** ENXTLS (2019-05-17) in EUR €3.26
Europe Electric Utilities Industry PE Ratio Median Figure of 66 Publicly-Listed Electric Utilities Companies 11.74x
Portugal Market PE Ratio Median Figure of 33 Publicly-Listed Companies 11.94x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EDP - Energias de Portugal.

ENXTLS:EDP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTLS:EDP Share Price ÷ EPS (both in EUR)

= 3.26 ÷ 0.12

26.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • EDP - Energias de Portugal is overvalued based on earnings compared to the Portugal market.
Price based on expected Growth
Does EDP - Energias de Portugal's expected growth come at a high price?
Raw Data
ENXTLS:EDP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
6.9%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 32 Publicly-Listed Electric Utilities Companies 1.39x
Portugal Market PEG Ratio Median Figure of 20 Publicly-Listed Companies 0.6x

*Line of best fit is calculated by linear regression .

ENXTLS:EDP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.11x ÷ 6.9%

3.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on EDP - Energias de Portugal's assets?
Raw Data
ENXTLS:EDP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €2.53
ENXTLS:EDP Share Price * ENXTLS (2019-05-17) in EUR €3.26
Europe Electric Utilities Industry PB Ratio Median Figure of 73 Publicly-Listed Electric Utilities Companies 0.9x
Portugal Market PB Ratio Median Figure of 42 Publicly-Listed Companies 1.03x
ENXTLS:EDP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTLS:EDP Share Price ÷ Book Value per Share (both in EUR)

= 3.26 ÷ 2.53

1.29x

* Primary Listing of EDP - Energias de Portugal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess EDP - Energias de Portugal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. EDP - Energias de Portugal has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

EDP Future Performance

 How is EDP - Energias de Portugal expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is EDP - Energias de Portugal expected to grow at an attractive rate?
  • EDP - Energias de Portugal's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • EDP - Energias de Portugal's earnings growth is positive but not above the Portugal market average.
  • EDP - Energias de Portugal's revenue growth is positive but not above the Portugal market average.
Annual Growth Rates Comparison
Raw Data
ENXTLS:EDP Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTLS:EDP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 6.9%
ENXTLS:EDP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 1.5%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Portugal Market Earnings Growth Rate Market Cap Weighted Average 10.6%
Portugal Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTLS:EDP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTLS:EDP Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,822 928
2022-12-31 14,902 2,802 985 1
2021-12-31 16,281 2,881 945 10
2020-12-31 15,998 2,802 896 13
2019-12-31 15,588 2,576 814 8
ENXTLS:EDP Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 14,990 2,845 453
2018-12-31 15,278 2,938 519
2018-09-30 15,403 3,137 264
2018-06-30 15,430 2,894 1,043
2018-03-31 15,545 1,966 1,064
2017-12-31 15,746 2,236 1,113
2017-09-30 15,614 1,733 1,492
2017-06-30 15,323 2,812 939
2017-03-31 15,041 4,345 913
2016-12-31 14,595 4,042 961
2016-09-30 14,547 4,214 792
2016-06-30 14,717 3,374 798

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • EDP - Energias de Portugal's earnings are expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
  • EDP - Energias de Portugal's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTLS:EDP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from EDP - Energias de Portugal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTLS:EDP Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.26 0.29 0.22 2.00
2022-12-31 0.26 0.28 0.20 5.00
2021-12-31 0.25 0.27 0.21 12.00
2020-12-31 0.24 0.26 0.21 16.00
2019-12-31 0.22 0.26 0.19 16.00
ENXTLS:EDP Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.12
2018-12-31 0.14
2018-09-30 0.07
2018-06-30 0.29
2018-03-31 0.29
2017-12-31 0.31
2017-09-30 0.41
2017-06-30 0.26
2017-03-31 0.25
2016-12-31 0.26
2016-09-30 0.22
2016-06-30 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • EDP - Energias de Portugal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess EDP - Energias de Portugal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EDP - Energias de Portugal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

EDP Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EDP - Energias de Portugal's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • EDP - Energias de Portugal's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • EDP - Energias de Portugal's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • EDP - Energias de Portugal's 1-year earnings growth is negative, it can't be compared to the Europe Electric Utilities industry average.
Earnings and Revenue History
EDP - Energias de Portugal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EDP - Energias de Portugal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTLS:EDP Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 14,990.09 453.19 1,531.96
2018-12-31 15,278.09 519.19 1,544.96
2018-09-30 15,403.34 263.87 1,529.36
2018-06-30 15,429.57 1,042.73 1,546.08
2018-03-31 15,545.17 1,063.70 1,564.01
2017-12-31 15,745.99 1,113.17 1,585.66
2017-09-30 15,614.12 1,492.10 1,583.06
2017-06-30 15,322.96 938.82 1,588.33
2017-03-31 15,041.45 913.10 1,575.90
2016-12-31 14,595.16 960.56 1,552.09
2016-09-30 14,546.99 791.81 1,570.71
2016-06-30 14,716.72 798.07 1,554.27
2016-03-31 15,168.38 938.95 1,559.32
2015-12-31 15,516.80 912.70 1,561.56
2015-09-30 16,075.43 1,010.05 1,542.08
2015-06-30 16,222.15 993.39 1,544.73
2015-03-31 16,102.01 1,040.29 1,408.73
2014-12-31 16,293.88 1,040.45 1,426.09
2014-09-30 16,188.44 979.07 1,413.53
2014-06-30 16,116.88 1,035.74 1,420.66
2014-03-31 16,192.73 907.03 1,563.61
2013-12-31 16,280.16 1,005.09 1,565.50
2013-09-30 16,164.84 1,010.30 1,595.70
2013-06-30 16,309.02 1,033.93 1,608.56
2013-03-31 16,342.34 1,009.98 1,607.66
2012-12-31 16,339.85 1,012.48 1,618.28
2012-09-30 16,048.91 1,095.56 1,542.51
2012-06-30 15,791.40 1,097.77 1,556.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • EDP - Energias de Portugal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • EDP - Energias de Portugal used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • EDP - Energias de Portugal's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess EDP - Energias de Portugal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EDP - Energias de Portugal has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

EDP Health

 How is EDP - Energias de Portugal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EDP - Energias de Portugal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • EDP - Energias de Portugal's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • EDP - Energias de Portugal's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of EDP - Energias de Portugal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EDP - Energias de Portugal Company Filings, last reported 1 month ago.

ENXTLS:EDP Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 13,190.00 16,644.00 1,582.00
2018-12-31 12,900.33 16,812.23 1,858.92
2018-09-30 12,516.83 16,793.31 970.16
2018-06-30 12,840.30 17,119.39 1,605.91
2018-03-31 13,535.21 16,555.56 1,389.80
2017-12-31 13,480.26 17,716.42 2,437.62
2017-09-30 13,799.70 17,984.28 1,466.04
2017-06-30 13,483.44 20,132.60 1,996.61
2017-03-31 14,052.17 18,914.25 1,572.30
2016-12-31 13,736.37 18,743.80 1,530.82
2016-09-30 13,120.31 18,838.80 1,687.44
2016-06-30 12,994.05 19,232.12 1,536.26
2016-03-31 12,642.47 19,561.83 1,577.07
2015-12-31 12,121.49 19,597.55 1,254.74
2015-09-30 11,932.55 19,565.37 1,104.06
2015-06-30 12,335.81 19,857.32 1,381.12
2015-03-31 12,241.22 19,868.12 2,249.34
2014-12-31 11,969.14 20,641.90 2,624.66
2014-09-30 11,740.54 20,386.70 2,058.81
2014-06-30 11,679.94 19,340.07 1,630.55
2014-03-31 11,982.98 19,568.33 1,688.68
2013-12-31 11,527.90 20,026.12 2,160.92
2013-09-30 11,517.89 20,824.87 1,829.54
2013-06-30 11,401.23 20,425.18 1,735.77
2013-03-31 11,932.13 20,141.79 1,460.13
2012-12-31 11,431.67 20,721.69 1,695.73
2012-09-30 11,278.23 20,652.66 2,217.94
2012-06-30 11,107.02 19,589.09 1,442.08
  • EDP - Energias de Portugal's level of debt (126.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (163.3% vs 126.2% today).
  • Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess EDP - Energias de Portugal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EDP - Energias de Portugal has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

EDP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.84%
Current annual income from EDP - Energias de Portugal dividends. Estimated to be 6.04% next year.
If you bought €2,000 of EDP - Energias de Portugal shares you are expected to receive €117 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • EDP - Energias de Portugal's pays a higher dividend yield than the bottom 25% of dividend payers in Portugal (2.81%).
  • EDP - Energias de Portugal's dividend is below the markets top 25% of dividend payers in Portugal (6.99%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTLS:EDP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 4.5%
Portugal Market Average Dividend Yield Market Cap Weighted Average of 22 Stocks 4.2%
Portugal Minimum Threshold Dividend Yield 10th Percentile 1.3%
Portugal Bottom 25% Dividend Yield 25th Percentile 2.8%
Portugal Top 25% Dividend Yield 75th Percentile 7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTLS:EDP Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.21 2.00
2022-12-31 0.21 5.00
2021-12-31 0.20 14.00
2020-12-31 0.19 17.00
2019-12-31 0.19 15.00
ENXTLS:EDP Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.190 5.611
2019-03-11 0.190 5.695
2018-03-01 0.190 5.934
2017-05-03 0.190 6.311
2016-03-15 0.185 6.334
2016-03-03 0.185 6.416
2015-03-19 0.185 5.617
2014-02-27 0.185 5.474
2013-05-06 0.185 6.970
2013-02-05 0.185 7.704
2012-09-17 0.185 8.570
2012-09-14 0.185 8.056
2012-03-16 0.185 9.463
2011-04-19 0.185 7.842
2011-03-03 0.170 6.164
2010-04-28 0.155 6.004

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, EDP - Energias de Portugal has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but EDP - Energias de Portugal only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of EDP - Energias de Portugal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess EDP - Energias de Portugal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EDP - Energias de Portugal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EDP - Energias de Portugal has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

EDP Management

 What is the CEO of EDP - Energias de Portugal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
António Guerra Nunes Mexia
COMPENSATION €2,198,892
AGE 61
CEO Bio

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 of EDP - Energias do Brasil S.A. and Bandeirante Energia, S.A. and served as its President of the Administration. He serves as a Director at Fundação EDP. He has held important positions in the energy sector in Portugal. From July 2004 to March 2005, he was a Minister of Public Works, Transportation and Communications of Portugals 16th Constitutional Government. He served as the Chief Executive Officer of Gás de Portugal from 2001 to 2004. He served as the Chief Executive Officer of Associação Portuguesa de Energia from 1992 to 2002, as well as a Senior Executive of companies such as Galp Energia and Transgás - Mexia also stands out for having headed the Portuguese government's Ministry of Public Works, Transportation and Communications from July 2004 to March 2005. He served as the Chairman and Chief Executive Officer of Gas de Portugal and of Transgs from 1998 to 2001. In 1990, Mr. Mexia joined Banco ESSI and served as a Member of the Executive Board of Directors in charge of the equity capital markets and project finance divisions until 1998. He served as an Assistant to the Secretary of State for Foreign Trade from 1986 to 1988. He has been the Chairman of EDP Renováveis S.A. since March 18, 2008. He served as Chairman of the Portuguese Energy Association (APE). He serves as Chairman of EDP Renewables North America LLC. He serves as Chairperson of the Executive of the Board of Directors of EDP Energías de Portugal, S.A. Mr. Mexia serves as the President of Eurelectric Aisbl. He served as the President of Board of Directors at EDP - Energias do Brasil S.A. and Union de l’Industrie Electrique – EURELECTRIC. He served as the Chairman of EDP - Energias do Brasil S.A. From 2001 to 2004, he served as the Executive Chairperson of Galpc Energia and Chairperson of the Board of Directors of Petrogal, Gás de Portugal, Transgás and Transgás-Atlântico. He serves as the Chairman of EDP - Energias do Brasil S.A. since April 2015. He serves as Chairman of EDP Energías de Portugal, S.A., Sucursal en España. He served as Vice-Chairman of Galp Energia SGPS SA from 2001 to July 2004. He served as Vice Chairman of ICEP (Portuguese Institute for Foreign Trade) from 1988 to 1990. He was a Non-Independent Director of Banco Comercial Português S.A. since February 28, 2012. He has been Director of EDP Renewables North America LLC since June 21, 2011. He has been an Executive Director at EDP-Energias de Portugal, S.A. since March 30, 2006. He served as a Member of Supervisory Board at Millenniumbcp-Ageas Grupo Segurador S.G.P.S. S.A since January 15, 2008. He served as a Member of Senior Board of Millenniumbcp-Ageas Grupo Segurador S.G.P.S. S.A. He serves as a Director of ONI Group (now ONITELECOM - Infocomunicações S.A.). He served as a Director of EDP - Energias do Brasil S.A. since April 2006. He served as a Member of Supervisory Board at Banco Comercial Português S.A. from January 2008 to February 28, 2012. He served as a Director of Galp Energia SGPS SA until July 2004. He is Representative of EDP Finance BV. He is Permanent Representative of EDP - Energias de Portugal Sociedade Anónima, Sucursal en España. In the academic field, he is well-known as a Post-Graduate Professor in European Studies in the Catholic University from 1985 to 1989 and as Assistant in the University of Geneva's Economic Department from 1979 to 1991. He served as a member of the governing boards of Universidade Nova de Lisboa and of Universidade Católica, where he was Director from 1982 to 1995. From 1990 to 1998, he served as Director of Banco Espírito Santo de Investimentos and in 1998 was nominated Chairperson of the Board of Directors of Gás de Portugal and Transgás. He also served as Chairperson of the Portuguese Energy Association (APE) from 1999 to 2002, member of the Trilateral Commission from 1992 to 1998, Vice-Chairperson of the Portuguese Industrial Association (AIP), and Chairperson of the General Supervisory Board of Ambelis. He was also a Government representative to the EU working group for the trans-European network development. He served as Assistant Lecturer in the Department of Economics of Université de Genève (Switzerland). He was a postgraduate lecturer in European Studies at Universidade Católica. Mr. Mexia received a B.Sc in Economics in 1980 from the University of Geneva (Switzerland).

CEO Compensation
  • António's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Insufficient data for António to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the EDP - Energias de Portugal management team in years:

13.3
Average Tenure
53
Average Age
  • The average tenure for the EDP - Energias de Portugal management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

António Guerra Nunes Mexia

TITLE
Chairman of the Board of Executive Directors & CEO
COMPENSATION
€2M
AGE
61

Miguel de Andrade

TITLE
Member of the Executive Board of Directors & CFO
COMPENSATION
€1M
AGE
42

Maria Teresa Pereira

TITLE
Head of Legal Office & Member of the Executive Board of Directors
COMPENSATION
€434K
AGE
53
TENURE
13.3 yrs

Miguel Ferreira

TITLE
Head of Consolidation
AGE
51

Miguel Viana

TITLE
Head of Investor Relations
AGE
46

Paulo Costa

TITLE
Head of Brand
AGE
53
TENURE
13.3 yrs

José Manuel Ferrari Careto

TITLE
Head of Customer & Marketing Department
AGE
55

José Santos

TITLE
Head of Organisational Development Department
AGE
51

Paula Carneiro

TITLE
Head of Human Resources Department
TENURE
5.7 yrs

Jose Eduardo Figueiredo Soares

TITLE
Chief of Office of the Ethics Ombudsman
AGE
65
Board of Directors Tenure

Average tenure and age of the EDP - Energias de Portugal board of directors in years:

7.1
Average Tenure
60
Average Age
  • The tenure for the EDP - Energias de Portugal board of directors is about average.
Board of Directors

António Guerra Nunes Mexia

TITLE
Chairman of the Board of Executive Directors & CEO
COMPENSATION
€2M
AGE
61
TENURE
13.2 yrs

Miguel de Andrade

TITLE
Member of the Executive Board of Directors & CFO
COMPENSATION
€1M
AGE
42
TENURE
7.3 yrs

Maria Teresa Pereira

TITLE
Head of Legal Office & Member of the Executive Board of Directors
COMPENSATION
€434K
AGE
53
TENURE
1.1 yrs

Eduardo de Almeida Catroga

TITLE
Member of General & Supervisory Board
COMPENSATION
€247K
AGE
76
TENURE
13.2 yrs

Shengliang Wu

TITLE
Member of General & Supervisory Board
COMPENSATION
€42K
AGE
47
TENURE
7.3 yrs

Luís Filipe Amado

TITLE
Chairman of General & Supervisory Board
COMPENSATION
€405K
AGE
65
TENURE
1.1 yrs

José Viegas

TITLE
President of Environment & Sustainability Board
TENURE
1.1 yrs

Dingming Zhang

TITLE
Vice Chairman of Corporate Board
COMPENSATION
€204K
AGE
55
TENURE
7 yrs

João Carlos Carvalho Neves

TITLE
Independent Member of General & Supervisory Board
COMPENSATION
€111K
AGE
62
TENURE
4.1 yrs

João Manso Neto

TITLE
Member of the Executive Board of Directors
COMPENSATION
€1M
AGE
60
TENURE
13.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess EDP - Energias de Portugal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EDP - Energias de Portugal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

EDP News

Simply Wall St News

Can EDP - Energias de Portugal, S.A. (ELI:EDP) Improve Its Returns?

Our data shows EDP - Energias de Portugal has a return on equity of 4.7% for the last year. … That means that for every €1 worth of shareholders' equity, it generated €0.047 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About EDP - Energias de Portugal SA's (ELI:EDP) Capital Returns?

and want a simplistic look at the return on EDP - Energias de Portugal SA (ELI:EDP) stock. … Your return is tied to EDP’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in EDP - Energias de Portugal, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

With An ROE Of 11%, Has EDP - Energias de Portugal SA's (ELI:EDP) Management Done Well?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … EDP - Energias de Portugal has a ROE of 11%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

EDP - Energias de Portugal SA (ELI:EDP): Time For A Financial Health Check

There are a number of reasons that attract investors towards large-cap companies such as EDP - Energias de Portugal SA (ELI:EDP), with a market cap of €12.34b. … Let’s take a look at EDP - Energias de Portugal’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for EDP - Energias de Portugal

Simply Wall St -

Should You Be Concerned About EDP - Energias de Portugal SA's (ELI:EDP) Investors?

In this article, I will take a quick look at EDP - Energias de Portugal SA’s (ELI:EDP) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

Does EDP - Energias de Portugal SA (ELI:EDP)'s Capital Return Make The Cut?

and want to better understand how you can grow your money by investing in EDP - Energias de Portugal SA (ELI:EDP). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in EDP - Energias de Portugal, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Are You An Income Investor? Don't Miss Out On EDP - Energias de Portugal SA (ELI:EDP)

EDP - Energias de Portugal SA (ELI:EDP) has pleased shareholders over the past 10 years, paying out an average dividend of 6.00% annually. … The company currently pays out a dividend yield of 5.49% to shareholders, making it a relatively attractive dividend stock. … Does EDP - Energias de Portugal tick all the boxes of a great dividend stock?

Simply Wall St -

What Do Analysts Think About the future of EDP - Energias de Portugal SA's (ELI:EDP)?

EDP - Energias de Portugal SA's (ELI:EDP) … steady outlook for net income … growth of 5.01% annualised

Simply Wall St -

Is It Time To Sell EDP - Energias de Portugal SA (ELI:EDP) Based Off Its PE Ratio?

Yes, this sober multiple may convince you to look elsewhere, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … To resolve this problem, I’ll identify some important factors to consider when judging the relative valuation of

Simply Wall St -

Is EDP - Energias de Portugal SA's (ELI:EDP) 10.41% ROE Strong Compared To Its Industry?

and want to better understand how you can grow your money by investing in EDP - Energias de Portugal SA (ELI:EDP). … If EDP borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

EDP Company Info

Description

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.

Details
Name: EDP - Energias de Portugal, S.A.
EDP
Exchange: ENXTLS
Founded: 1976
€11,834,797,278
3,634,765,749
Website: http://www.edp.com
Address: EDP - Energias de Portugal, S.A.
Avenida 24 de Julho, nº 12,
4º Piso,
Lisbon,
Lisbon, 1249-300,
Portugal
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTLS EDP Category A Ordinary Shares Euronext Lisbon PT EUR 17. Jun 1997
DB EDP Category A Ordinary Shares Deutsche Boerse AG DE EUR 17. Jun 1997
LSE 0OF7 Category A Ordinary Shares London Stock Exchange GB EUR 17. Jun 1997
SWX EDP Category A Ordinary Shares SIX Swiss Exchange CH CHF 17. Jun 1997
BATS-CHIXE EDPU Category A Ordinary Shares BATS 'Chi-X Europe' GB EUR 17. Jun 1997
OTCPK EDPF.Y SPONSORED ADR Pink Sheets LLC US USD 17. Jun 1997
OTCPK ELCP.F Category B Ordinary Shares Pink Sheets LLC US USD 08. Nov 2004
BST EDPA SPONSORED ADR Boerse-Stuttgart DE EUR 17. Jun 1997
Number of employees
Current staff
Staff numbers
11,613
EDP - Energias de Portugal employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 21:05
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.