ENXTLS:EDP

Stock Analysis Report

EDP - Energias de Portugal

Executive Summary

EDP - Energias de Portugal, S.A. engages in the generation, transportation, distribution, and supply of 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

-0.6%

EDP

-2.2%

PT Electric Utilities

0.4%

PT Market


1 Year Return

0.9%

EDP

-2.4%

PT Electric Utilities

-14.1%

PT Market

Return vs Industry: EDP matched the Portuguese Electric Utilities industry which returned -0.4% over the past year.

Return vs Market: EDP exceeded the Portuguese Market which returned -11.5% over the past year.


Shareholder returns

EDPIndustryMarket
7 Day-0.6%-2.2%0.4%
30 Day-20.4%-19.5%-17.6%
90 Day-7.7%-13.5%-17.4%
1 Year7.0%0.9%1.1%-2.4%-10.3%-14.1%
3 Year33.8%11.7%36.1%20.1%0.5%-11.2%
5 Year28.6%-4.0%24.6%-3.0%-17.2%-9.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDP (€3.57) is trading below our estimate of fair value (€7.14)

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 (25.4x) compared to the Electric Utilities industry average (10.6x).

PE vs Market: EDP is poor value based on its PE Ratio (25.4x) compared to the Portuguese market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: EDP is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: EDP is overvalued based on its PB Ratio (1.5x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is EDP - Energias de Portugal forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDP's forecast earnings growth (11.2% per year) is above the savings rate (0.4%).

Earnings vs Market: EDP's earnings (11.2% per year) are forecast to grow faster than the Portuguese market (9.3% per year).

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

Revenue vs Market: EDP's revenue (3.1% per year) is forecast to grow slower than the Portuguese market (4.2% per year).

High Growth Revenue: EDP's revenue (3.1% 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 (10.5%).


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 high quality earnings.

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 (7.2%).


Return on Equity

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


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: EDP's short term assets (€8.4B) do not cover its short term liabilities (€8.8B).

Long Term Liabilities: EDP's short term assets (€8.4B) do not cover its long term liabilities (€20.9B).


Debt to Equity History and Analysis

Debt Level: EDP's debt to equity ratio (133.8%) is considered high.

Reducing Debt: EDP's debt to equity ratio has reduced from 172.3% to 133.8% over the past 5 years.

Debt Coverage: EDP's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: EDP's interest payments on its debt are well covered by EBIT (3.8x 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 0.5x debt).


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDP's dividend (5.32%) is higher than the bottom 25% of dividend payers in the Portuguese market (2.97%).

High Dividend: EDP's dividend (5.32%) is low compared to the top 25% of dividend payers in the Portuguese market (8.17%).


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 (135%), 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 (81.9% payout ratio).


Next Steps

Management

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

8.0yrs

Average board tenure


CEO

António Luís Guerra Nunes Mexia (62yo)

no data

Tenure

€2,166,463

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 ($USD2.38M) is below average for companies of similar size in the Portuguese market ($USD4.07M).

Compensation vs Earnings: António Luís Guerra's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
António Luís Guerra Nunes Mexia
Chairman of the Board of Executive Directors & CEOno data€2.17mno data
Miguel de Andrade
CFO & Member of Executive Board of Directors8.17yrs€1.36mno data
João Manuel Manso Neto
Member of the Executive Board of Directors14.08yrs€1.48mno data
Antonio Fernando Melo da Costa
Member of the Executive Board of Directors14.08yrs€1.19mno data
Dingming Zhang
Vice Chairman of General & Supervisory Board7.92yrs€95.00kno data
Maria Teresa Pereira
Member of the Executive Board of Directors2yrs€771.62k0.0020% 253.6k
Shengliang Wu
Member of General & Supervisory Board8.17yrs€57.00kno data
Luís Filipe Amado
Chairman of General & Supervisory Board2yrs€515.00kno data
João Carlos Carvalho Neves
Independent Member of General & Supervisory Board5yrs€115.00k0.00020% 25.9k
José Viegas
President of Environment & Sustainability Board2yrsno datano data

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: EDP's board of directors are considered experienced (8 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: €12.941b
  • Shares outstanding: 3.64b
  • Website: https://www.edp.pt

Number of Employees


Location

  • EDP - Energias de Portugal, S.A.
  • Avenida 24 de Julho 12
  • 1249-300
  • Lisbon
  • Lisbon
  • 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. engages in the generation, transportation, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration sources. It also distributes and supplies natural gas. The company has an installed capacity of 27 GW; and serves 9,827,505 electricity customers and 1,599,232 gas customers. It also operates 286,470 kilometers of distribution overhead lines; and 54,274 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 Analysis2020/04/02 22:48
End of Day Share Price2020/04/02 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.