Critical Review: EDP Renováveis (EDRVF) & Its Peers

Profitability

This table compares EDP Renováveis and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EDP Renováveis	N/A	N/A	N/A
EDP Renováveis Competitors	-42.23%	13.62%	0.84%

Institutional and Insider Ownership

14.0% of EDP Renováveis shares are owned by institutional investors. Comparatively, 35.4% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by institutional investors. 21.7% of shares of all “Independent Power & Renewable Electricity Producers” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares EDP Renováveis and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
EDP Renováveis	N/A	N/A	164.76
EDP Renováveis Competitors	$6.39 billion	$832.74 million	6.02

EDP Renováveis’ rivals have higher revenue and earnings than EDP Renováveis. EDP Renováveis is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

EDP Renováveis pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. EDP Renováveis pays out 32.3% of its earnings in the form of a dividend. As a group, “Independent Power & Renewable Electricity Producers” companies pay a dividend yield of 6.6% and pay out 381.9% of their earnings in the form of a dividend.

Summary

EDP Renováveis rivals beat EDP Renováveis on 6 of the 9 factors compared.

About EDP Renováveis

EDP Renováveis, S.A., a renewable energy company, plans, constructs, operates, and maintains electricity power stations. The company operates wind and solar farms. As of December 31, 2023, it had an installed capacity of 6,891 megawatts in the United States; 2,042 megawatts in Spain; 1,413 megawatts in Portugal; 1,165 megawatts in Brazil; 798 megawatts in Poland; 521 megawatts in Romania; 496 megawatts in Mexico; 427 megawatts in Canada; 412 megawatts in Italy; 402 megawatts in Vietnam; 315 megawatts in Singapore; 244 megawatts in France; 123 megawatts in China; 83 megawatts in Chile; 80 megawatts in Greece; 43 megawatts in Taiwan; 11 megawatts in Belgium; 9 megawatts in the Netherlands; 7 megawatts in Thailand; and 5 megawatts in the United Kingdom. The company was incorporated in 2007 and is headquartered in Madrid, Spain. EDP Renováveis, S.A. is a subsidiary of EDP – Energias de Portugal, S.A.