EDP Energias (Portugal) Buy Hold or Sell Recommendation
| EDP Stock | EUR 3.52 0.04 1.15% |
Assuming the 90 days trading horizon and your typical level of risk aversion, our recommendation regarding EDP Energias is 'Strong Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell EDP Energias given historical horizon and risk tolerance towards EDP Energias. When Macroaxis issues a 'buy' or 'sell' recommendation for EDP Energias, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out EDP Energias Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as EDP and provide practical buy, sell, or hold advice based on investors' constraints. EDP Energias. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
EDP |
Execute EDP Energias Buy or Sell Advice
The EDP recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on EDP Energias. Macroaxis does not own or have any residual interests in EDP Energias or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute EDP Energias' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves slightly opposite to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
EDP Energias Trading Alerts and Improvement Suggestions
| EDP Energias generated a negative expected return over the last 90 days | |
| EDP Energias has accumulated 15.68 B in total debt with debt to equity ratio (D/E) of 1.2, which is about average as compared to similar companies. EDP Energias has a current ratio of 0.63, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist EDP Energias until it has trouble settling it off, either with new capital or with free cash flow. So, EDP Energias' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like EDP Energias sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for EDP to invest in growth at high rates of return. When we think about EDP Energias' use of debt, we should always consider it together with cash and equity. | |
| About 34.0% of EDP Energias shares are held by company insiders |
EDP Energias Returns Distribution Density
The distribution of EDP Energias' historical returns is an attempt to chart the uncertainty of EDP Energias' future price movements. The chart of the probability distribution of EDP Energias daily returns describes the distribution of returns around its average expected value. We use EDP Energias price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of EDP Energias returns is essential to provide solid investment advice for EDP Energias.
| Mean Return | -0.1 | Value At Risk | -2.05 | Potential Upside | 2.04 | Standard Deviation | 1.56 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of EDP Energias historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
EDP Energias Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to EDP Energias or Electric Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that EDP Energias' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a EDP stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.05 | |
β | Beta against Dow Jones | -0.5 | |
σ | Overall volatility | 1.59 | |
Ir | Information ratio | -0.15 |
EDP Energias Volatility Alert
EDP Energias exhibits very low volatility with skewness of -1.14 and kurtosis of 6.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure EDP Energias' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact EDP Energias' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.EDP Energias Fundamentals Vs Peers
Comparing EDP Energias' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze EDP Energias' direct or indirect competition across all of the common fundamentals between EDP Energias and the related equities. This way, we can detect undervalued stocks with similar characteristics as EDP Energias or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of EDP Energias' fundamental indicators could also be used in its relative valuation, which is a method of valuing EDP Energias by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare EDP Energias to competition |
| Fundamentals | EDP Energias | Peer Average |
| Return On Equity | 0.11 | -0.31 |
| Return On Asset | 0.0143 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.06 % | (5.51) % |
| Current Valuation | 37.96 B | 16.62 B |
| Shares Outstanding | 3.95 B | 571.82 M |
| Shares Owned By Insiders | 33.53 % | 10.09 % |
| Shares Owned By Institutions | 47.61 % | 39.21 % |
| Price To Earning | 21.30 X | 28.72 X |
| Price To Book | 2.72 X | 9.51 X |
| Price To Sales | 0.89 X | 11.42 X |
| Revenue | 14.98 B | 9.43 B |
| Gross Profit | 4.49 B | 27.38 B |
| EBITDA | 3.82 B | 3.9 B |
| Net Income | 656.72 M | 570.98 M |
| Cash And Equivalents | 1.53 B | 2.7 B |
| Cash Per Share | 0.39 X | 5.01 X |
| Total Debt | 15.68 B | 5.32 B |
| Debt To Equity | 1.20 % | 48.70 % |
| Current Ratio | 0.64 X | 2.16 X |
| Book Value Per Share | 1.74 X | 1.93 K |
| Cash Flow From Operations | 2.02 B | 971.22 M |
| Earnings Per Share | 0.16 X | 3.12 X |
| Price To Earnings To Growth | 1.59 X | 4.89 X |
| Target Price | 5.9 | |
| Number Of Employees | 12.99 K | 18.84 K |
| Beta | 0.49 | -0.15 |
| Market Capitalization | 18.29 B | 19.03 B |
| Total Asset | 50.99 B | 29.47 B |
| Z Score | 0.6 | 8.72 |
| Annual Yield | 0.04 % | |
| Five Year Return | 5.45 % | |
| Net Asset | 50.99 B |
EDP Energias Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as EDP . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About EDP Energias Buy or Sell Advice
When is the right time to buy or sell EDP Energias? Buying financial instruments such as EDP Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Tools for EDP Stock Analysis
When running EDP Energias' price analysis, check to measure EDP Energias' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EDP Energias is operating at the current time. Most of EDP Energias' value examination focuses on studying past and present price action to predict the probability of EDP Energias' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EDP Energias' price. Additionally, you may evaluate how the addition of EDP Energias to your portfolios can decrease your overall portfolio volatility.