Empresa Distribuidora y Comercializadora Norte Sociedad Anónima
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima Fundamental Analysis
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) shows moderate financial fundamentals with a PE ratio of 7.74, profit margin of 7.84%, and ROE of 11.70%. The company generates $2630.8B in annual revenue with weak year-over-year growth of 1.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EDN's fundamental strength across five key dimensions:
Efficiency Score
WeakEDN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEDN trades at attractive valuation levels.
Growth Score
WeakEDN faces weak or negative growth trends.
Financial Health Score
ExcellentEDN maintains a strong and stable balance sheet.
Profitability Score
WeakEDN struggles to sustain strong margins.
Key Financial Metrics
Is EDN Expensive or Cheap?
P/E Ratio
EDN trades at 7.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EDN's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Empresa Distribuidora y Comercializadora Norte Sociedad Anónima at 0.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.38 times EBITDA. This is generally considered low.
How Well Does EDN Make Money?
Net Profit Margin
For every $100 in sales, Empresa Distribuidora y Comercializadora Norte Sociedad Anónima keeps $7.84 as profit after all expenses.
Operating Margin
Core operations generate 4.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.70 in profit for every $100 of shareholder equity.
ROA
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima generates $4.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima generates limited operating cash flow of $249.38B, signaling weaker underlying cash strength.
Free Cash Flow
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima produces free cash flow of $185.51B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4240.28 in free cash annually.
FCF Yield
EDN converts 11.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How EDN Stacks Against Its Sector Peers
| Metric | EDN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.74 | 19.20 | Better (Cheaper) |
| ROE | 11.70% | 1033.00% | Weak |
| Net Margin | 7.84% | 9191.00% | Weak |
| Debt/Equity | 0.40 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 1.68 | Neutral |
| ROA | 4.07% | -237.00% (disorted) | Weak |
EDN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2169.72%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
2145.34%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
0.00%
Industry Style: Defensive, Dividend, Income
Declining