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EDP - Energias de Portugal

DB:EDP
Snowflake Description

Established dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EDP
DB
€13B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

EDP - Energias de Portugal, S.A. engages in the generation, transportation, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. The last earnings update was 22 days ago. More info.


Add to Portfolio Compare Print
  • EDP - Energias de Portugal has significant price volatility in the past 3 months.
EDP Share Price and Events
7 Day Returns
-2.8%
DB:EDP
0.7%
Europe Electric Utilities
2.1%
DE Market
1 Year Returns
2.9%
DB:EDP
-0.5%
Europe Electric Utilities
-16.6%
DE Market
EDP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EDP - Energias de Portugal (EDP) -2.8% -20.3% -4.8% 2.9% 13.8% -2.6%
Europe Electric Utilities 0.7% -17.1% -11.1% -0.5% 22.1% -2%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • EDP outperformed the Electric Utilities industry which returned -0.5% over the past year.
  • EDP outperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
EDP
Industry
5yr Volatility vs Market
Related Companies

Value

 Is EDP - Energias de Portugal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EDP - Energias de Portugal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EDP - Energias de Portugal.

DB:EDP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:EDP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 8.2%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.272 (1 + (1- 21%) (135.35%))
0.707
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 8.23%)
6.19%

Discounted Cash Flow Calculation for DB:EDP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EDP - Energias de Portugal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:EDP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.19%)
2020 2,076.50 Analyst x5 1,955.38
2021 1,469.75 Analyst x4 1,303.30
2022 854.00 Analyst x1 713.11
2023 877.45 Est @ 2.75% 689.96
2024 1,772.00 Analyst x1 1,312.09
2025 1,803.99 Est @ 1.81% 1,257.87
2026 1,824.68 Est @ 1.15% 1,198.08
2027 1,837.19 Est @ 0.69% 1,135.94
2028 1,843.86 Est @ 0.36% 1,073.56
2029 1,846.39 Est @ 0.14% 1,012.33
Present value of next 10 years cash flows €11,651.00
DB:EDP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,846.39 × (1 + -0.39%) ÷ (6.19% – -0.39%)
€27,934.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €27,934.18 ÷ (1 + 6.19%)10
€15,315.67
DB:EDP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €11,651.00 + €15,315.67
€26,966.67
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €26,966.67 / 3,635.13
€7.42
DB:EDP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:EDP represents 0.99362x of ENXTLS:EDP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99362x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 7.42 x 0.99362
€7.37
Value per share (EUR) From above. €7.37
Current discount Discount to share price of €3.58
= -1 x (€3.58 - €7.37) / €7.37
51.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price EDP - Energias de Portugal is available for.
Intrinsic value
>50%
Share price is €3.58 vs Future cash flow value of €7.37
Current Discount Checks
For EDP - Energias de Portugal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • EDP - Energias de Portugal's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • EDP - Energias de Portugal's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EDP - Energias de Portugal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EDP - Energias de Portugal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:EDP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €0.14
ENXTLS:EDP Share Price ** ENXTLS (2020-04-07) in EUR €3.61
Europe Electric Utilities Industry PE Ratio Median Figure of 74 Publicly-Listed Electric Utilities Companies 10.45x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EDP - Energias de Portugal.

DB:EDP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTLS:EDP Share Price ÷ EPS (both in EUR)

= 3.61 ÷ 0.14

25.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • EDP - Energias de Portugal is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does EDP - Energias de Portugal's expected growth come at a high price?
Raw Data
DB:EDP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
11.2%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 35 Publicly-Listed Electric Utilities Companies 1.6x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:EDP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.61x ÷ 11.2%

2.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on EDP - Energias de Portugal's assets?
Raw Data
DB:EDP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €2.44
ENXTLS:EDP Share Price * ENXTLS (2020-04-07) in EUR €3.61
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.78x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:EDP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTLS:EDP Share Price ÷ Book Value per Share (both in EUR)

= 3.61 ÷ 2.44

1.48x

* Primary Listing of EDP - Energias de Portugal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EDP - Energias de Portugal is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess EDP - Energias de Portugal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. EDP - Energias de Portugal has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is EDP - Energias de Portugal expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is EDP - Energias de Portugal expected to grow at an attractive rate?
  • EDP - Energias de Portugal's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • EDP - Energias de Portugal's earnings growth is positive but not above the Germany market average.
  • EDP - Energias de Portugal's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:EDP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:EDP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 11.2%
DB:EDP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.1%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:EDP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:EDP Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,945 1,017
2023-12-31 2,871 949
2022-12-31 15,622 2,786 973 5
2021-12-31 15,760 2,751 912 10
2020-12-31 15,347 2,656 840 13
2020-04-07
DB:EDP Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 14,333 2,221 512
2019-09-30 14,414 2,658 682
2019-06-30 14,826 3,000 544
2019-03-31 14,990 2,845 454
2018-12-31 15,278 2,938 519
2018-09-30 15,403 3,137 264
2018-06-30 15,430 2,894 1,043
2018-03-31 15,545 1,966 1,064
2017-12-31 15,746 2,236 1,113
2017-09-30 15,614 1,733 1,492
2017-06-30 15,323 2,812 939
2017-03-31 15,041 4,345 913

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • EDP - Energias de Portugal's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • EDP - Energias de Portugal's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:EDP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from EDP - Energias de Portugal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:EDP Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.28 0.36 0.23 3.00
2023-12-31 0.26 0.33 0.21 3.00
2022-12-31 0.26 0.30 0.22 8.00
2021-12-31 0.25 0.29 0.19 12.00
2020-12-31 0.23 0.25 0.19 14.00
2020-04-07
DB:EDP Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 0.14
2019-09-30 0.19
2019-06-30 0.15
2019-03-31 0.12
2018-12-31 0.14
2018-09-30 0.07
2018-06-30 0.29
2018-03-31 0.29
2017-12-31 0.31
2017-09-30 0.41
2017-06-30 0.26
2017-03-31 0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • EDP - Energias de Portugal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess EDP - Energias de Portugal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EDP - Energias de Portugal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has EDP - Energias de Portugal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EDP - Energias de Portugal's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • EDP - Energias de Portugal's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • EDP - Energias de Portugal's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • EDP - Energias de Portugal's 1-year earnings growth is negative, it can't be compared to the Europe Electric Utilities industry average.
Earnings and Revenue History
EDP - Energias de Portugal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EDP - Energias de Portugal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:EDP Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 14,333.01 511.75 1,104.11
2019-09-30 14,413.59 682.26 1,509.56
2019-06-30 14,826.11 544.23 1,512.60
2019-03-31 14,989.87 453.82 1,518.07
2018-12-31 15,278.09 519.19 1,298.57
2018-09-30 15,403.34 263.87 1,551.24
2018-06-30 15,429.57 1,042.73 1,558.56
2018-03-31 15,545.17 1,063.70 1,577.10
2017-12-31 15,745.99 1,113.17 1,585.66
2017-09-30 15,614.12 1,492.10 1,583.06
2017-06-30 15,322.96 938.82 1,588.33
2017-03-31 15,041.45 913.10 1,575.90
2016-12-31 14,595.16 960.56 1,552.09
2016-09-30 14,546.99 791.81 1,570.71
2016-06-30 14,716.72 798.07 1,554.27
2016-03-31 15,168.38 938.95 1,559.32
2015-12-31 15,516.80 912.70 1,561.56
2015-09-30 16,075.43 1,010.05 1,542.08
2015-06-30 16,222.15 993.39 1,544.73
2015-03-31 16,102.01 1,040.29 1,408.73
2014-12-31 16,293.88 1,040.45 1,426.09
2014-09-30 16,188.44 979.07 1,413.53
2014-06-30 16,116.88 1,035.74 1,420.66
2014-03-31 16,192.73 907.03 1,563.61
2013-12-31 16,280.16 1,005.09 1,565.50
2013-09-30 16,164.84 1,010.30 1,595.70
2013-06-30 16,309.02 1,033.93 1,608.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • EDP - Energias de Portugal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • EDP - Energias de Portugal used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • EDP - Energias de Portugal has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess EDP - Energias de Portugal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EDP - Energias de Portugal has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is EDP - Energias de Portugal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EDP - Energias de Portugal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • EDP - Energias de Portugal's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • EDP - Energias de Portugal's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of EDP - Energias de Portugal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EDP - Energias de Portugal Company Filings, last reported 3 months ago.

DB:EDP Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 12,632.01 16,903.82 1,595.69
2019-09-30 12,671.79 17,113.72 1,749.36
2019-06-30 12,565.78 17,086.24 1,440.97
2019-03-31 13,190.52 17,010.62 1,657.66
2018-12-31 12,900.33 16,727.77 1,858.92
2018-09-30 12,516.83 16,708.52 970.16
2018-06-30 12,840.30 17,034.25 1,605.91
2018-03-31 13,535.21 16,470.06 1,389.80
2017-12-31 13,480.26 17,630.57 2,437.62
2017-09-30 13,799.70 17,898.09 1,466.04
2017-06-30 13,483.44 20,101.52 1,996.61
2017-03-31 14,052.17 18,883.03 1,572.30
2016-12-31 13,736.37 18,712.44 1,530.82
2016-09-30 13,120.31 18,807.31 1,687.44
2016-06-30 12,994.05 19,200.50 1,536.26
2016-03-31 12,642.47 19,530.09 1,577.07
2015-12-31 12,121.49 19,565.68 1,254.74
2015-09-30 11,932.55 19,565.37 1,104.06
2015-06-30 12,335.81 19,849.51 1,381.12
2015-03-31 12,241.22 19,860.24 2,249.34
2014-12-31 11,969.14 20,641.90 2,624.66
2014-09-30 11,740.54 20,379.40 2,058.81
2014-06-30 11,679.94 19,332.89 1,630.55
2014-03-31 11,982.98 19,561.20 1,688.68
2013-12-31 11,527.90 20,018.56 2,160.92
2013-09-30 11,517.89 20,817.57 1,829.54
2013-06-30 11,401.23 20,417.59 1,735.77
  • EDP - Energias de Portugal's level of debt (133.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (172.3% vs 133.8% today).
  • Debt is not well covered by operating cash flow (13.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess EDP - Energias de Portugal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EDP - Energias de Portugal has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is EDP - Energias de Portugal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.27%
Current annual income from EDP - Energias de Portugal dividends. Estimated to be 5.63% next year.
If you bought €2,000 of EDP - Energias de Portugal shares you are expected to receive €105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • EDP - Energias de Portugal's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • EDP - Energias de Portugal's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:EDP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 51 Stocks 4.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:EDP Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.23 3.00
2023-12-31 0.22 4.00
2022-12-31 0.21 9.00
2021-12-31 0.20 14.00
2020-12-31 0.19 16.00
2020-04-07
DB:EDP Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-16 0.190 5.499
2020-02-20 0.190 4.488
2019-03-25 0.190 5.307
2019-03-11 0.190 5.695
2018-03-01 0.190 5.934
2017-05-03 0.190 6.311
2016-03-15 0.185 6.334
2016-03-03 0.185 6.416
2015-03-19 0.185 5.617
2014-02-27 0.185 5.474
2013-05-06 0.185 6.970
2013-02-05 0.185 7.704
2012-09-17 0.185 8.570
2012-09-14 0.185 8.056
2012-03-16 0.185 9.463
2011-04-19 0.185 7.842
2011-03-03 0.170 6.164
2010-04-28 0.155 6.004
2009-04-24 0.112 3.838

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of EDP - Energias de Portugal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess EDP - Energias de Portugal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EDP - Energias de Portugal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EDP - Energias de Portugal has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of EDP - Energias de Portugal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
António Luís Guerra Nunes Mexia
COMPENSATION €2,166,463
AGE 62
CEO Bio

Mr. Antonio Luis Guerra Nunes Mexia serves as the Chief Executive Officer of EDP-Energias de Portugal, S.A. and serves as its Chairman of the Board since March 30, 2006. Mr. Mexia served as the President of EDP - Energias do Brasil S.A. and Bandeirante Energia, S.A. and served as its President of the Administration. He serves as a Director at Fundação EDP. He has held important positions in the energy sector in Portugal. From July 2004 to March 2005, he was a Minister of Public Works, Transportation and Communications of Portugals 16th Constitutional Government. He served as the Chief Executive Officer of Gás de Portugal from 2001 to 2004. He served as the Chief Executive Officer of Associação Portuguesa de Energia from 1992 to 2002, as well as a Senior Executive of companies such as Galp Energia and Transgás - Mexia also stands out for having headed the Portuguese government's Ministry of Public Works, Transportation and Communications from July 2004 to March 2005. He served as the Chairman and Chief Executive Officer of Gas de Portugal and of Transgs from 1998 to 2001. In 1990, Mr. Mexia joined Banco ESSI and served as a Member of the Executive Board of Directors in charge of the equity capital markets and project finance divisions until 1998. He served as an Assistant to the Secretary of State for Foreign Trade from 1986 to 1988. He has been the Chairman of EDP Renováveis S.A. since March 18, 2008. He served as Chairman of the Portuguese Energy Association (APE). He serves as Chairman of EDP Renewables North America LLC. He serves as Chairperson of the Executive of the Board of Directors of EDP Energías de Portugal, S.A. Mr. Mexia serves as the President of Eurelectric Aisbl. He served as the President of Board of Directors at EDP - Energias do Brasil S.A. and Union de l’Industrie Electrique – EURELECTRIC. He served as the Chairman of EDP - Energias do Brasil S.A. From 2001 to 2004, he served as the Executive Chairperson of Galpc Energia and Chairperson of the Board of Directors of Petrogal, Gás de Portugal, Transgás and Transgás-Atlântico. He serves as the Chairman of EDP - Energias do Brasil S.A. since April 2015. He serves as Chairman of EDP Energías de Portugal, S.A., Sucursal en España. He served as Vice-Chairman of Galp Energia SGPS SA from 2001 to July 2004. He served as Vice Chairman of ICEP (Portuguese Institute for Foreign Trade) from 1988 to 1990. He was a Non-Independent Director of Banco Comercial Português S.A. since February 28, 2012. He has been Director of EDP Renewables North America LLC since June 21, 2011. He has been an Executive Director at EDP-Energias de Portugal, S.A. since March 30, 2006. He served as a Member of Supervisory Board at Millenniumbcp-Ageas Grupo Segurador S.G.P.S. S.A since January 15, 2008. He served as a Member of Senior Board of Millenniumbcp-Ageas Grupo Segurador S.G.P.S. S.A. He serves as a Director of ONI Group (now ONITELECOM - Infocomunicações S.A.). He served as a Director of EDP - Energias do Brasil S.A. since April 2006. He served as a Member of Supervisory Board at Banco Comercial Português S.A. from January 2008 to February 28, 2012. He served as a Director of Galp Energia SGPS SA until July 2004. He is Representative of EDP Finance BV. He is Permanent Representative of EDP - Energias de Portugal Sociedade Anónima, Sucursal en España. In the academic field, he is well-known as a Post-Graduate Professor in European Studies in the Catholic University from 1985 to 1989 and as Assistant in the University of Geneva's Economic Department from 1979 to 1991. He served as a member of the governing boards of Universidade Nova de Lisboa and of Universidade Católica, where he was Director from 1982 to 1995. From 1990 to 1998, he served as Director of Banco Espírito Santo de Investimentos and in 1998 was nominated Chairperson of the Board of Directors of Gás de Portugal and Transgás. He also served as Chairperson of the Portuguese Energy Association (APE) from 1999 to 2002, member of the Trilateral Commission from 1992 to 1998, Vice-Chairperson of the Portuguese Industrial Association (AIP), and Chairperson of the General Supervisory Board of Ambelis. He was also a Government representative to the EU working group for the trans-European network development. He served as Assistant Lecturer in the Department of Economics of Université de Genève (Switzerland). He was a postgraduate lecturer in European Studies at Universidade Católica. Mr. Mexia received a B.Sc in Economics in 1980 from the University of Geneva (Switzerland).

CEO Compensation
  • António Luís Guerra's compensation has been consistent with company performance over the past year, both up more than 20%.
  • António Luís Guerra's remuneration is lower than average for companies of similar size in Germany.
Management Team

António Luís Guerra Nunes Mexia

TITLE
Chairman of the Board of Executive Directors & CEO
COMPENSATION
€2M
AGE
62

Miguel de Andrade

TITLE
CFO & Member of Executive Board of Directors
COMPENSATION
€1M
AGE
43

Ana Rita Pontífice De Almeida Côrte-Real

TITLE
Company Secretary
TENURE
2 yrs

Paula Cristina Guerra

TITLE
Treasurer
AGE
46
Board of Directors Tenure

Average tenure and age of the EDP - Energias de Portugal board of directors in years:

8
Average Tenure
61
Average Age
  • The tenure for the EDP - Energias de Portugal board of directors is about average.
Board of Directors

Miguel de Andrade

TITLE
CFO & Member of Executive Board of Directors
COMPENSATION
€1M
AGE
43
TENURE
8.2 yrs

Shengliang Wu

TITLE
Member of General & Supervisory Board
COMPENSATION
€57K
AGE
48
TENURE
8.2 yrs

António Luís Guerra Nunes Mexia

TITLE
Chairman of the Board of Executive Directors & CEO
COMPENSATION
€2M
AGE
62
TENURE
14.1 yrs

Luís Filipe Amado

TITLE
Chairman of General & Supervisory Board
COMPENSATION
€515K
AGE
66
TENURE
2 yrs

José Viegas

TITLE
President of Environment & Sustainability Board
TENURE
2 yrs

Dingming Zhang

TITLE
Vice Chairman of General & Supervisory Board
COMPENSATION
€95K
AGE
56
TENURE
7.9 yrs

João Carlos Carvalho Neves

TITLE
Independent Member of General & Supervisory Board
COMPENSATION
€115K
AGE
63
TENURE
5 yrs

João Manuel Manso Neto

TITLE
Member of the Executive Board of Directors
COMPENSATION
€1M
AGE
61
TENURE
14.1 yrs

Antonio Fernando Melo da Costa

TITLE
Member of the Executive Board of Directors
COMPENSATION
€1M
AGE
65
TENURE
14.1 yrs

Maria Teresa Pereira

TITLE
Member of the Executive Board of Directors
COMPENSATION
€772K
AGE
54
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess EDP - Energias de Portugal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EDP - Energias de Portugal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

EDP - Energias de Portugal, S.A. engages in the generation, transportation, distribution, and supply of electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Renewables, Networks, and Client Solutions & Energy Management segments. The company primarily generates electricity through hydro, CCGT, coal, wind, solar, nuclear, and cogeneration sources. It also distributes and supplies natural gas. The company has an installed capacity of 27 GW; and serves 9,827,505 electricity customers and 1,599,232 gas customers. It also operates 286,470 kilometers of distribution overhead lines; and 54,274 kilometers of distribution underground lines. In addition, the company offers engineering, laboratory tests, professional training, energy, and property management services. EDP - Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal.

Details
Name: EDP - Energias de Portugal, S.A.
EDP
Exchange: DB
Founded: 1976
€13,108,287,319
3,635,132,368
Website: http://www.edp.pt
Address: EDP - Energias de Portugal, S.A.
Avenida 24 de Julho 12,
1249-300,
Lisbon,
Lisbon, Portugal
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTLS EDP Category A Ordinary Shares Euronext Lisbon PT EUR 17. Jun 1997
DB EDP Category A Ordinary Shares Deutsche Boerse AG DE EUR 17. Jun 1997
LSE 0OF7 Category A Ordinary Shares London Stock Exchange GB EUR 17. Jun 1997
SWX EDP Category A Ordinary Shares SIX Swiss Exchange CH CHF 17. Jun 1997
ETLX EDP Category A Ordinary Shares Eurotlx IT EUR 17. Jun 1997
BATS-CHIXE EDPU Category A Ordinary Shares BATS 'Chi-X Europe' GB EUR 17. Jun 1997
OTCPK ELCP.F Category B Ordinary Shares Pink Sheets LLC US USD 08. Nov 2004
OTCPK EDPF.Y SPON ADR EACH REPR 10 ORD EUR1 Pink Sheets LLC US USD 17. Jun 1997
BST EDPA SPON ADR EACH REPR 10 ORD EUR1 Boerse-Stuttgart DE EUR 17. Jun 1997
Number of employees
Current staff
Staff numbers
11,660
EDP - Energias de Portugal employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 22:55
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/03/16
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.