EDP Renováveis, S.A. (EDPR.LS) stock analysis

In our weekly check, EDP Renováveis, S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About EDP Renováveis, S.A.

EDP Renováveis, S.A. is an Utilities company (Renewable Utilities) based in Spain, listed on LIS as EDPR.LS.

What our checks show for EDPR.LS

Red flags

• Net debt is 6.2x a year of EBITDA (debt/equity 0.97). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 25.2 points over 5 years, to 12%: the company keeps less of each sale as profit.
• The gross margin fell by 39.5 points, to 41.3%: costs are rising faster than prices.
• Free cash flow is negative (-64.3% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.5%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 4.4% a year of growth in revenue.
• Revenue grew only 2.3% a year over the last 3 years.
• Earnings per share fell 23.2% a year over the last 3 years.
• Net profit fell 20.9% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 3.41x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 31.3% a year over the next years.
• Analysts expect the net margin to improve by 8.8 points from today's 12%.
• The dividend takes 9% of profit: there is a cushion.
• A large company: market value $14.77 billion.

Next earnings report: 2026-11-05

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Questions

What grade does EDP Renováveis, S.A. (EDPR.LS) have?

In our weekly check, EDP Renováveis, S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EDPR.LS stock?

This week's biggest flags for EDP Renováveis, S.A.: High debt, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does EDP Renováveis, S.A. do?

EDP Renováveis, S.A. is an Utilities company (Renewable Utilities) based in Spain, listed on LIS as EDPR.LS.

When does EDP Renováveis, S.A. report earnings next?

The next earnings report is expected on 2026-11-05. 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 2026-10-31

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