EDP - Energias de Portugal, S.A. (EDP.LS) stock analysis
In our weekly check, EDP - Energias de Portugal, S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.
About EDP - Energias de Portugal, S.A.
EDP - Energias de Portugal, S.A. is an Utilities company (Diversified Utilities), listed on LIS as EDP.LS.
What our checks show for EDP.LS
Red flags
- Net debt is 4.3x a year of EBITDA (debt/equity 2.13). That limits room in a downturn and raises refinancing risk.
- The gross margin fell by 4.6 points, to 21.7%: costs are rising faster than prices.
- Revenue fell 8.5% a year over the last 3 years.
- Free cash flow is negative (-8.3% of revenue): the business spends more cash than it brings in.
- The stock has fallen as much as 66% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 7.7 years.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Operating profit covers interest only 2.4 times: a weak year could make the payments hard.
- Analysts expect only about 0.3% a year of growth in revenue.
- Earnings per share fell 2.9% a year over the last 3 years.
- Net profit fell 1.4% a year over the last 3 years.
- The net margin is only 7.4%: little room if costs rise.
- Return on capital (ROCE) is only 5.8%.
Strengths
- Operating cash flow is 2.36x net profit: the profit arrives as real cash.
- A large company: market value $21.7 billion.
- Beta 0.55: the stock usually moves less than the market.
- Actively traded: about 7.7 million shares a day.
Next earnings report: 2026-11-06
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Questions
What grade does EDP - Energias de Portugal, S.A. (EDP.LS) have?
In our weekly check, EDP - Energias de Portugal, S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of EDP.LS stock?
This week's biggest flags for EDP - Energias de Portugal, S.A.: High debt, Gross margin falling, Weak revenue growth. In total 13 of 25 checks show a warning or a red flag.
What does EDP - Energias de Portugal, S.A. do?
EDP - Energias de Portugal, S.A. is an Utilities company (Diversified Utilities), listed on LIS as EDP.LS.
When does EDP - Energias de Portugal, S.A. report earnings next?
The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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