Energias de Portugal (EDPFY) & Its Peers Critical Analysis

Energias de Portugal (OTCMKTS: EDPFY) is one of 69 public companies in the “Electric services” industry, but how does it compare to its peers? We will compare Energias de Portugal to similar companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Volatility & Risk

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Energias de Portugal has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Energias de Portugal’s peers have a beta of 0.03, indicating that their average stock price is 97% less volatile than the S&P 500.

Dividends

Energias de Portugal pays an annual dividend of $1.50 per share and has a dividend yield of 4.0%. Energias de Portugal pays out 51.5% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 70.7% of their earnings in the form of a dividend. Energias de Portugal is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Energias de Portugal and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energias de Portugal 9.71% 11.35% 3.60%
Energias de Portugal Competitors -23.11% 3.58% -0.65%

Institutional and Insider Ownership

0.1% of Energias de Portugal shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 3.9% of shares of all “Electric services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Energias de Portugal and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Energias de Portugal $16.15 billion $1.06 billion 12.99
Energias de Portugal Competitors $8.48 billion $467.20 million 10.72

Energias de Portugal has higher revenue and earnings than its peers. Energias de Portugal is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Energias de Portugal and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energias de Portugal 0 1 0 0 2.00
Energias de Portugal Competitors 426 2330 2018 57 2.35

As a group, “Electric services” companies have a potential upside of 9.32%. Given Energias de Portugal’s peers stronger consensus rating and higher possible upside, analysts clearly believe Energias de Portugal has less favorable growth aspects than its peers.

Summary

Energias de Portugal beats its peers on 9 of the 15 factors compared.

Energias de Portugal Company Profile

EDP – Energias de Portugal, S.A. generates, distributes, and supplies electricity in Portugal, Spain, France, Poland, Romania, Brazil, and the United States. It operates through Generation and Supply in Iberia, Regulated Networks in Iberia, EDP Renováveis, and EDP Brasil segments. The company primarily generates electricity through water, wind, sun, coal, natural gas, nuclear, and cogeneration sources. It also distributes and supplies gas. The company has an installed capacity of 25 GW. It serves approximately 9.8 million electricity customers and 1.5 million gas customers. In addition, the company offers services in various areas, such as engineering, laboratory tests, vocational training, energy services, and property management. EDP – Energias de Portugal, S.A. was founded in 1976 and is headquartered in Lisbon, Portugal.

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