EDP EDP.LS
EDP is an integrated Portuguese energy company operating in electricity and gas generation, distribution, and retail, with a strong focus on electricity networks and renewable energy. EDP shows acceptable financial health (6.14) but with high leverage (Net Debt/EBITDA 5.51) and negative free cash flow conversion that hurt quality (3.45); earnings growth of 28.6% and the guidance upgrade on networks support the thesis, though valuation (P/E 16.64) is not particularly attractive.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
EDP is an integrated Portuguese energy company operating in electricity and gas generation, distribution, and retail, with a strong focus on electricity networks and renewable energy. EDP shows acceptable financial health (6.14) but with high leverage (Net Debt/EBITDA 5.51) and negative free cash flow conversion that hurt quality (3.45); earnings growth of 28.6% and the guidance upgrade on networks support the thesis, though valuation (P/E 16.64) is not particularly attractive.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 3.5 |
| Valuation | 4.9 |
| Growth | 6.7 |
| Dividend | 7.2 |
| Momentum | 5.7 |
| Risk & Context | 7.1 |
OVERALL SCORE: 5.8/10
Context and risks
Moderate regulatory/governance risk in Portugal and exposure to emerging markets in renewables (Brazil) with weak governance that may affect profit distribution to minority shareholders.
News considered in the analysis
- EDP rises after raising outlook again on networks-led earnings strength — Mejora de guidance por fortaleza de redes: material y ya ocurrido, aunque el mercado lo descuenta solo parcialmente tras la subida.
- Southern Company's Unit PowerSecure Wins Data Center Power Project — Noticia de un competidor estadounidense sin impacto directo en EDP.
- Are Utilities Stocks Lagging CLP (CLPHY) This Year? — Comparativa genérica de sector sin información nueva sobre EDP.
- Is Deutsche Telekom (DTEGY) Outperforming Other Utilities Stocks This Year? — Listículo comparativo sin relevancia para EDP.
- Is Energias de Portugal (EDPFY) Outperforming Other Utilities Stocks This Year? — Artículo genérico de rendimiento sectorial sin información nueva.
Verdict: Hold; the guidance upgrade and networks growth offset leverage, but valuation and cash conversion limit upside potential.
Main risk: High leverage (Net Debt/EBITDA 5.51) combined with rising 10-year yields makes refinancing more expensive and pressures free cash flow generation, which is already negative.
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