EDP Renováveis, S.A.
EDP Renováveis, S.A. Fundamental Analysis
EDP Renováveis, S.A. (EDRVF) shows weak financial fundamentals with a PE ratio of 61.21, profit margin of 8.74%, and ROE of 2.11%. The company generates $2.5B in annual revenue with moderate year-over-year growth of 6.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EDRVF's fundamental strength across five key dimensions:
Efficiency Score
WeakEDRVF struggles to generate sufficient returns from assets.
Valuation Score
ModerateEDRVF shows balanced valuation metrics.
Growth Score
ModerateEDRVF shows steady but slowing expansion.
Financial Health Score
WeakEDRVF carries high financial risk with limited liquidity.
Profitability Score
WeakEDRVF struggles to sustain strong margins.
Key Financial Metrics
Is EDRVF Expensive or Cheap?
P/E Ratio
EDRVF trades at 61.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EDRVF's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values EDP Renováveis, S.A. at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.60 times EBITDA. This is generally considered low.
How Well Does EDRVF Make Money?
Net Profit Margin
For every $100 in sales, EDP Renováveis, S.A. keeps $8.74 as profit after all expenses.
Operating Margin
Core operations generate 52.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.11 in profit for every $100 of shareholder equity.
ROA
EDP Renováveis, S.A. generates $0.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
EDP Renováveis, S.A. produces operating cash flow of $581.49M, showing steady but balanced cash generation.
Free Cash Flow
EDP Renováveis, S.A. generates weak or negative free cash flow of $-5.07B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.83 in free cash annually.
FCF Yield
EDRVF converts -38.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How EDRVF Stacks Against Its Sector Peers
| Metric | EDRVF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.21 | 20.28 | Worse (Expensive) |
| ROE | 2.11% | 920.00% | Weak |
| Net Margin | 8.74% | 736.00% | Weak |
| Debt/Equity | 1.00 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 0.74 | 1.44 | Weak Liquidity |
| ROA | 0.71% | -6170.00% (disorted) | Weak |
EDRVF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews EDP Renováveis, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.21%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-198.70%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-47.75%
Industry Style: Defensive, Dividend, Income
Declining