EDP Renovables EDPR.LS
EDP Renovables is a Spanish energy company dedicated to the development, construction, and operation of renewable energy generation plants, mainly wind and solar, selling the electricity generated in wholesale markets and through long-term contracts. EDP Renovables presents a fragile financial health with a net debt of 8.19x EBITDA and a return on equity (ROE) of only 3.83%, reflecting excessive leverage and low value generation. Its valuation (P/E 37.88) is demanding, although the P/B of 1.31 suggests the market is not paying an excessive price for its assets.
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 Renovables is a Spanish energy company dedicated to the development, construction, and operation of renewable energy generation plants, mainly wind and solar, selling the electricity generated in wholesale markets and through long-term contracts. EDP Renovables presents a fragile financial health with a net debt of 8.19x EBITDA and a return on equity (ROE) of only 3.83%, reflecting excessive leverage and low value generation. Its valuation (P/E 37.88) is demanding, although the P/B of 1.31 suggests the market is not paying an excessive price for its assets.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 3.3 |
| Valuation | 2.5 |
| Dividend | 5.2 |
| Momentum | 6.4 |
| Risk & Context | 6.2 |
OVERALL SCORE: 4.6/10
Context and risks
Regulatory and governance risk in Spain and exposure to changes in energy policies. The regulatory framework for renewables may undergo modifications that affect the profitability of existing assets.
News considered in the analysis
- Europe’s winter power prices jump as gas supply concerns grow - Bloomberg — El aumento de los precios de la electricidad en Europa, impulsado por la preocupación por el gas, puede beneficiar los ingresos de EDP Renovables en el mercado mayorista, aunque el efecto es moderado y parcialmente descontado.
- EDP Renovaveis SA (EDRVF) Q4 2025 Earnings Call Highlights: Strong Financial Performance and ... — Los resultados del Q4 ya son públicos y ampliamente cubiertos; la información ya está en el precio.
- EDP Renováveis (ENXTLS:EDPR) Valuation Check After Recent Share Price Momentum — Artículo de análisis de valoración sin información nueva material.
- EXCLUSIVE: Pandora Ranked Most Sustainable Consumer Brand — Noticia irrelevante sobre otra empresa.
- EDP Renovaveis SA (EDRVF) Q3 2025 Earnings Call Highlights: Strong Growth in Wind and Solar ... — Resultados del Q3 ya publicados y descontados.
Verdict: Hold, given the high leverage and demanding valuation, pending an improvement in cash generation and debt reduction.
Main risk: The high leverage (Net Debt/EBITDA of 8.19) in a rising interest rate environment, which makes debt servicing more expensive and pressures the company's financial health.
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