Empresa Distribuidora Stock Analysis, Valuation (NYSE:EDN)

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$27.75 $2.35 (7.81%) EDN stock closing price Aug 13, 2018 (Closing)

View the Empresa Distribuidora stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for EDN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Empresa Distribuidora y Cmrz Nrt SA(ADR) Stock Rating 2.9/5

Amigobulls EDN stock analysis takes into account various financial ratios like relative valuation, Empresa Distribuidora revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Empresa Distribuidora dividend performance. Empresa Distribuidora valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Empresa Distribuidora stock rating which is indicative of the company's financial performance.

Should you buy EDN stock?

  • Empresa Distribuidora sales grew by 61% year on year in 2018-03.
  • Revenue growth has been tremendous with a compounded annual growth of 16.7 over the last 5 years.
  • The company has an operating cash flow which is 1.8857 times the net income. We see this as a positive signal.
  • EDN stock is trading at a favorable price to sales multiple of 0.7 as against the Utilities sector average multiple of 2.
  • Empresa Distribuidora has an attractive ROIC (Return on Invested Capital) of 23.7
  • Empresa Distribuidora has a good Return On Equity (ROE) of 126.6.
  • Empresa Distribuidora has a healthy FCF (Free Cash Flow) margin of 15.6.

Should you sell EDN stock?

Comments on this video and Empresa Distribuidora stock

Investors can make use of the Amigobulls Empresa Distribuidora stock analysis to ascertain how EDN stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Empresa Distribuidora revenue growth and profit or net income are two main metrics which help in identifying whether EDN stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Empresa Distribuidora stock.