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EDP - Energias de Portugal SA EDP

Morningstar Rating
€3.72 −0.02 (0.59%)
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Company Report

EDP Earnings: Bottom Line Boosted by Lower Minorities; 2026 Targets Slightly Below Expectations

We confirm our EUR 5 fair value estimate after no-moat EDP released first-quarter results in line with the FactSet consensus, confirmed its 2024 guidance, and cut its 2026 financial targets after its subsidiary EDPR did so on May 9. The dividend policy—based on a floor of EUR 0.195 in 2024-25 and EUR 0.20 in 2026 with a target payout of 60%-70%—is maintained. Current price/earnings and dividend yield of 11.7 and 5.4%, respectively, reflect the material undervaluation of the shares.

Price vs Fair Value

EDP is trading at a 57% premium.
Price
€3.81
Fair Value
€2.00
Uncertainty
Medium
1-Star Price
€6.84
5-Star Price
€7.70
Economic Moat
Bmjy
Capital Allocation
Cxvfqdqrk

Bulls Say, Bears Say

Bulls

Being an early mover, EDP has an attractive portfolio of renewables assets, especially in the US

Bears

The Spanish networks' regulatory regime allows only limited pass through of inflation.

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News

Trading Information

Previous Close Price
€3.74
Day Range
€3.683.74
52-Week Range
€3.454.74
Bid/Ask
€3.72 / €3.72
Market Cap
€15.47 Bil
Volume/Avg
1.2 Mil / 10.3 Mil

Key Statistics

Price/Earnings (Normalized)
16.75
Price/Sales
1.01
Dividend Yield (Trailing)
5.22%
Dividend Yield (Forward)
5.22%
Total Yield
18.24%

Company Profile

EDP is a vertically integrated utility company and is the largest generator, supplier, and distributor of electricity in Portugal. In addition to Portugal, EDP has sizable operations in Spain, Brazil, and the US EDP owns 71% of EDP Renovaveis, the fourth-largest wind power owner/operator in the world. EDP also owns 54% of Energias do Brasil, which it aims to delist by end-2023.
Sector
Utilities
Industry
Utilities - Diversified
Stock Style Box
Large Value
Total Number of Employees
12,925

Competitors

Valuation

Metric
EDP
AES
ENEL
Price/Earnings (Normalized)
16.7510.0515.19
Price/Book Value
1.315.042.45
Price/Sales
1.011.170.77
Price/Cash Flow
4.724.884.40
Price/Earnings
EDP
AES
ENEL

Financial Strength

Metric
EDP
AES
ENEL
Quick Ratio
0.660.330.60
Current Ratio
0.910.680.88
Interest Coverage
2.300.663.50
Quick Ratio
EDP
AES
ENEL

Profitability

Metric
EDP
AES
ENEL
Return on Assets (Normalized)
2.57%3.59%3.49%
Return on Equity (Normalized)
12.99%80.05%26.69%
Return on Invested Capital (Normalized)
5.31%6.76%7.14%
Return on Assets
EDP
AES
ENEL
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Utilities - Diversified Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
IBDSF
Iberdrola SAGbyq$83.9 Bil
IBDRY
Iberdrola SA ADRTZQSlxc$82.5 Bil
ESOCF
Enel SpABxjdkszqCvfd$72.6 Bil
ENLAY
Enel SpA ADRThzyfqvxwRzbk$72.6 Bil
SRE
SempraGphqwmkfJrqnl$48.0 Bil
ENGQF
Engie SAYbtbj$41.3 Bil
ENGIY
Engie SA ADRNmj$40.7 Bil
EONGY
E.ON SE ADRTfgmhxkzJtq$36.0 Bil
ENAKF
E.ON SEYchp$34.9 Bil
AES
The AES CorpJpzjzhmJdyw$14.9 Bil

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