Fact based stock research
EDP (ENXTLS:EDP)

PTEDP0AM0009

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

EDP stock research in summary

edp.com

ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), EDP (Electric Utilities, Portugal) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of EDP are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives) but show below-average growth (Growth Rank of 41), and are riskily financed (Safety Rank of 36), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on EDP's financial characteristics. As the company EDP's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 41) and risky financing practices (Obermatt Safety Rank of 36), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 63% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	63
Growth Rank	41
Safety Rank	36
Combined Rank	42

Country	Portugal
Industry	Electric Utilities
Index	Low Emissions, Employee Focus EU, Human Rights, Nuclear, PSI General, PSI 20
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: EDP

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	43	32	63
GROWTH
GROWTH	29	5	51	41
SAFETY
SAFETY	11	46	7	36
SENTIMENT
SENTIMENT	n/a	89	96	^new
360° VIEW
360° VIEW	n/a	45	42	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better EDP is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	43	32	63
GROWTH
GROWTH	29	5	51	41
SAFETY
SAFETY	11	46	7	36
COMBINED
COMBINED	11	26	6	42

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of EDP the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), EDP shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for EDP. Price-to-Sales (P/S) is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for EDP's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 59. Finally, compared with other companies in the same industry, dividend yields of EDP are expected to be higher than for 80% of all competitors (a Dividend Yield rank of 80). The only low rank is for expected profits with a Price-to-Profit Rank of 41, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on EDP's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	54	52	55	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	34	27	26	41
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31	41	21	59
DIVIDEND YIELD
DIVIDEND YIELD	60	57	58	80
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	43	32	63

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of EDP; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), EDP shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for EDP. Sales Growth has a rank of 72, which means that, currently, professionals expect the company to grow more than 72% of its competitors. Profit Growth with a rank of 87 is also above average. But Capital Growth has only a rank of 7, and Stock Returns with 21 are also below-average. Stock returns for EDP have recently been below 79% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for EDP. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	31	55	23	72
PROFIT GROWTH
PROFIT GROWTH	7	28	81	87
CAPITAL GROWTH
CAPITAL GROWTH	n/a	12	67	7
STOCK RETURNS
STOCK RETURNS	48	25	43	21
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29	5	51	41

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of EDP.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 36 (better than 36% compared with alternatives), the company EDP has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of EDP is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for EDP. Liquidity is at 32, meaning that the company generates less profit to service its debt than 68% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 49, meaning the company has an above-average debt-to-equity ratio. It has more debt than 51% of its competitors. Finally, Refinancing is at a rank of 39 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 36 (worse than 64% compared with alternatives), EDP has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of EDP because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	52	42	49
REFINANCING
REFINANCING	31	63	9	39
LIQUIDITY
LIQUIDITY	13	30	27	32
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	11	46	7	36

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of EDP and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	89	71	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	47	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	71	74	^new
MARKET PULSE
MARKET PULSE	n/a	60	69	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	89	96	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for EDP.
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