Edenor SA (EDN) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 230.89K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.52
• Revenue Growth: 11.85%
• EPS Growth: N/A
• Country: US
• Employees: 4,642
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.85
• Shares Outstanding: 22,110,500
• 10 Day Avg. Volume: 287,991
• 30 Day Avg. Volume: 230,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $36.00
• Price Target Upside: 27.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $29.00 ▲(2.91% Upside)

Edenor SA's strong valuation due to a low P/E ratio is a significant positive factor, suggesting the stock is undervalued. Financial performance shows a positive trajectory with strong revenue and profit growth, although cash flow issues need attention. Technical analysis indicates bullish momentum, but the high RSI suggests caution. Overall, the stock presents a promising opportunity with some risks to monitor.

Positive Factors

Revenue Growth

The significant revenue growth and improved distribution margin indicate strong operational performance and potential for sustained market expansion.

Credit Rating Upgrade

The credit rating upgrade reflects improved financial health, enhancing investor confidence and potentially reducing borrowing costs.

Operational Efficiency

Improved EBITDA suggests enhanced operational efficiency, supporting long-term profitability and investment capacity.

Negative Factors

Legal Challenges

Ongoing legal challenges could pose risks to operations and financial stability, potentially impacting long-term strategic initiatives.

Cash Flow Challenges

Persistent cash flow issues may hinder Edenor's ability to fund operations and growth, affecting financial flexibility and stability.

Regulatory Dependence

Heavy reliance on government regulations for pricing and revenue poses risks to financial predictability and strategic autonomy.

Edenor SA Business Overview & Revenue Model

Company Description

Edenor SA (EDN) is one of the largest electricity distribution companies in Argentina, primarily operating in the northern region of Buenos Aires. The company is responsible for the transmission and distribution of electricity to residential, commercial, and industrial customers. Edenor plays a crucial role in the energy sector, providing essential services that ensure the stability and reliability of electricity supply in its service area. The company is a key player in the Argentine energy market, contributing to the country's infrastructure and economic development.

How the Company Makes Money

Edenor generates revenue primarily through the distribution of electricity, charging its customers based on consumption. The company earns money by billing residential, commercial, and industrial users for the electricity supplied, which is regulated by governmental tariffs. Edenor's revenue model is heavily influenced by the regulatory framework set by the Argentine government, which dictates pricing structures and service standards. Additionally, the company may benefit from connections and infrastructure projects, expanding its customer base and improving service efficiency. Partnerships with governmental and regulatory bodies also play a significant role in ensuring compliance and securing funding for infrastructure improvements, which can enhance revenue potential over time.

Edenor SA Financial Statement Overview

Summary

Edenor SA demonstrates strong revenue and profit growth with a solid balance sheet, characterized by low leverage and strong equity returns. However, cash flow management is a concern due to negative free cash flow growth, indicating potential liquidity challenges.

Income Statement

Edenor SA shows a strong revenue growth rate of 9.93% in the TTM period, indicating a positive trajectory. The gross profit margin is healthy at 18.45%, and the net profit margin is solid at 11.36%. However, the EBIT margin of 23.88% and EBITDA margin of 27.92% suggest strong operational efficiency. The company has improved from previous years, showing a turnaround from negative EBIT and EBITDA margins in earlier periods.

Balance Sheet

The debt-to-equity ratio of 0.29 in the TTM period indicates a conservative leverage position, which is favorable for stability. Return on equity is robust at 18.33%, reflecting effective use of equity to generate profits. The equity ratio stands at 40.00%, suggesting a strong equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

The operating cash flow to net income ratio of 0.25 indicates moderate cash generation relative to net income. However, the free cash flow growth rate is significantly negative at -546.63%, which is concerning. The free cash flow to net income ratio of 0.39 suggests some cash flow challenges, although it has improved from previous periods. The company needs to focus on improving its free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49T	2.04T	701.10B	205.84B	113.50B	91.32B
Gross Profit	458.76B	394.60B	27.73B	7.69B	14.59B	13.52B
EBITDA	634.60B	199.76B	-36.56B	-19.77B	4.11B	-15.21B
Net Income	282.50B	272.13B	48.37B	-17.47B	-21.34B	-17.70B
Balance Sheet
Total Assets	4.66T	3.98T	3.29T	3.26T	463.27B	224.51B
Cash, Cash Equivalents and Short-Term Investments	387.48B	397.47B	199.81B	205.69B	36.75B	10.05B
Total Debt	545.76B	476.36B	213.23B	101.38B	20.66B	12.99B
Total Liabilities	2.80T	2.47T	2.05T	2.21T	319.72B	129.61B
Stockholders Equity	1.87T	1.51T	1.23T	1.04T	143.55B	94.90B
Cash Flow
Free Cash Flow	111.16B	-114.05B	-48.31B	3.70B	6.62B	7.55B
Operating Cash Flow	281.55B	245.92B	71.47B	35.43B	21.35B	17.40B
Investing Cash Flow	-415.02B	-567.25B	-79.06B	-37.36B	-25.54B	-7.22B
Financing Cash Flow	155.74B	265.18B	7.34B	-4.76B	-1.44B	-6.15B

Edenor SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDN, the sentiment is Positive. The current price of 28.18 is above the 20-day moving average (MA) of 19.33, above the 50-day MA of 19.18, and below the 200-day MA of 28.62, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 80.17 is Negative, neither overbought nor oversold. The STOCH value of 85.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDN.

Edenor SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPU	―	$2.25B	12.20	9.38%	2.62%	-9.20%	-53.99%
POR	―	$5.01B	16.83	8.02%	4.48%	9.78%	-6.19%
EBR	―	$23.86B	19.16	6.01%	6.08%	6.41%	37.23%
EDN	―	$1.49B	5.13	21.45%	―	11.85%	―
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GNE	―	$397.69M	48.13	5.44%	1.96%	3.75%	4.61%
ENIC	―	$5.25B	37.02	2.89%	5.85%	-19.56%	-83.31%

Edenor SA Corporate Events

Edenor’s Credit Rating Upgraded by S&P

On October 27, 2025, Edenor announced that S&P has upgraded its national scale rating and Global Notes Program rating from raBBB- to raA+, with a stable outlook. This upgrade reflects positively on Edenor’s financial health and could enhance its reputation in the market, potentially leading to increased investor confidence and better access to capital.

Edenor Faces Legal Action from Argentine Ministry of Economy

On August 22, 2025, Edenor S.A. announced that the Ministry of Economy of Argentina has filed a legal action against the company and Edesur. This lawsuit, related to MECON Resolution No. 590/2021, was communicated to the company on November 25, 2021, and it may have significant implications for Edenor’s operations and its stakeholders.

Edenor Reports Strong Financial Performance and Continued Investments in H1 2025

On August 8, 2025, Edenor SA reported its financial results for the first half of the year, ending June 30, 2025, showing a profit of ARS 131,004 million. The company experienced a 22% increase in revenue and a 6% rise in distribution margin compared to the previous year, attributed to electricity rate adjustments. Edenor’s EBITDA reached ARS 289,385 million, reflecting improved operations and financial performance, enabling continued investments in service quality and expansion. The company also reported a slight increase in electricity sales and customer numbers, with investments totaling ARS 163,538 million, underscoring its dedication to service enhancement.

Edenor SA Approves Interim Financial Statements for June 2025

On August 8, 2025, Edenor SA held a board meeting where they approved their interim financial statements for the period ending June 30, 2025. The meeting, conducted via Microsoft Teams, was attended by the company’s directors and members of the Supervisory Committee, ensuring compliance with legal regulations. This approval marks a significant step in maintaining transparency and accountability in Edenor’s financial operations, potentially impacting its stakeholders positively by reinforcing trust in its financial management.

Edenor Reports Strong Financial Results for Mid-2025

On August 8, 2025, Edenor’s Board of Directors approved the company’s financial statements for the period ending June 30, 2025. The company reported a profit of 131,004 million ARS attributable to its shareholders, reflecting a stable financial position. The announcement highlights Edenor’s continued financial health and its significant market presence, with a total equity of 1,865,591 million ARS. This financial performance underscores Edenor’s robust operations and its strategic positioning in the Argentine energy market.

Edenor SA Reports Strong Revenue Growth in Mid-2025 Financials

Edenor SA has released its condensed interim consolidated financial statements for the six-month period ending June 30, 2025. The company reported a significant increase in revenue, reaching 1,299,917 million pesos compared to 1,065,380 million pesos in the same period last year. This growth reflects an improved distribution margin despite higher energy purchase costs. The financial results indicate a positive trend in Edenor’s operational performance, which could strengthen its market position and benefit stakeholders.

Edenor SA Files SEC Report to Reinforce Regulatory Compliance

On August 8, 2025, Edenor SA filed a report with the U.S. Securities and Exchange Commission as part of its compliance with the Securities Exchange Act of 1934. This filing, signed by CFO Germán Ranftl, underscores the company’s ongoing commitment to regulatory transparency and could have implications for its stakeholders by reinforcing its operational credibility and industry positioning.