EDP Renovaveis SA
EDPR: XLIS (PRT)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €67.00 | Jzzj | Vfrksrdc |
EDP Renovaveis Lacks Structural Competitive Advantage Despite Its Strong Track Record
Business Strategy and Outlook
EDP Renovaveis, the 71%-owned subsidiary of integrated Portuguese utility EDP, was created in 2007. With 14.7 gigawatts of installed capacity (mostly onshore wind) at end-2022, it is the fourth-largest renewables player in the world and in the U.S. This enviable position stems from an early-mover advantage reflecting astute capital allocation, strong execution, and support from the parent company. Capacity doubled between 2010 and 2021, driving 20% EPS CAGR in the meantime.