EDP Renovaveis SA
EDPR: XLIS (PRT)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €95.00 | Lws | Dvctbzc |
EDP Renovaveis Lacks Structural Competitive Advantage Despite Its Strong Track Record
Business Strategy and Outlook
EDP Renovaveis, the 75%-owned subsidiary of integrated Portuguese utility EDP, was created in 2007. With 13.6 GW of installed capacity (mostly onshore wind) at end-2021, it is the fourth-largest renewable player in the world and third largest in the U.S. and Europe behind Iberdrola and Enel. This enviable position stems from an early-mover advantage reflecting savvy capital allocation, strong execution, and support from the parent company. Capacity doubled between 2010 and 2021, driving 20% EPS CAGR in the meantime.