3 months Premium FREE
No credit card. No commitment.
EDP - Energias de Portugal S.A.
🇵🇹 EDP.LS · Lisbon · PTEDP0AM0009
Utilities
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
ROE
7.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
7.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
4.62% TTM
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM, last 12 months): 4.62%
Payout Ratio (Fwd)
92.6% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Annual² | — | 05 May 2027 | — | EUR | 0.205 |
| Paid | Annual² | — | 05 May 2026 | — | EUR | 0.205 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
² Type not provided by EODHD — inferred from historical payment data.
Summary
EDP is a leading Iberian utility operator and global renewables player with highly attractive valuation metrics driven by temporary one-off impairments. Trading at €4.46, substantially below our fair value estimate of €12.33-18.50, the stock presents a classic temporary problem opportunity where the market has overreacted to non-recurring charges. With major historical overhangs resolved—including a massive $885M U.S. offshore lease reimbursement and 30-year Brazilian concession renewals—alongside incoming regulatory WACC hikes, this is worth considering for new positions. The 4.6% yield provides steady income while waiting for price appreciation.
Sector Context
EDP is an integrated utility generating revenue through regulated electricity distribution, renewable generation, and energy supply across Iberia, Brazil, and global markets. For dividend investors, regulated utilities offer predictable, inflation-protected cash flows; EDP specifically benefits from tariff-deviation protections that insulate its core earnings from the wholesale power price volatility currently impacting pure merchant competitors.
Temporary Opportunity Identified
Q4 2024 net loss (-€282M) driven by one-off impairment charges related to renewables projects in the US and Colombia, masking the parent company's strong core profitability. The US offshore wind risk has since been favorably resolved via an $885M government reimbursement.
📊 Strategy Analysis
- • Trading at €4.46, heavily discounted compared to our fair value estimate of €12.33-18.50 (implied P/FFO fair value), offering substantial upside potential.
- • Major previous risks have been favorably resolved, including a secured $885M reimbursement for cancelled US offshore wind leases and successful 30-year renewals of Brazilian distribution concessions.
- • Favorable regulatory tailwinds for 2026-2031, including significant WACC hikes (6.7% in Portugal, ~9% in Spain) and the elimination of the CESE tax on new investments.
- • Reliable 4.6% dividend yield supported by a strong core business (parent company reported €801M net profit) and 9 years of uninterrupted dividend payments.
⚠ What to Watch
- • Long-term revenue uncertainty remains regarding the Portuguese low-voltage grid concessions, as the government deadline for public tenders passed without execution.
- • Current Free Cash Flow is negative (-€528M) due to aggressive capital expenditure requirements, though this is expected to be materially improved by the $885M US lease reimbursement.
Analysis date: 2026-08-01
Disclaimer: This information is for educational purposes only. Not financial advice.