Edenor SA (EDN) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: N/A
• Average Volume (3M): 230.89K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.58
• Revenue Growth: 2.98%
• EPS Growth: N/A
• Country: US
• Employees: 4,642
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.70
• Shares Outstanding: 22,110,500
• 10 Day Avg. Volume: 287,991
• 30 Day Avg. Volume: 230,886
• PEG Ratio: 0.17
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -16.95
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $38.00 ▲(20.83% Upside)

Edenor SA's overall stock score is driven primarily by its strong valuation and financial performance. The company shows impressive revenue and profit growth, and its stock appears undervalued with a low P/E ratio. However, technical indicators suggest the stock is currently overbought, which could lead to short-term volatility. Cash flow challenges also pose a risk to sustained growth.

Positive Factors

Revenue Growth

Strong revenue growth and improved distribution margins indicate robust operational performance and strategic pricing adjustments, enhancing market position.

Credit Rating Upgrade

The credit rating upgrade reflects improved financial health, potentially lowering borrowing costs and increasing investor confidence, supporting long-term growth.

Operational Efficiency

High EBIT and EBITDA margins demonstrate strong operational efficiency, suggesting effective cost management and profitability, supporting sustainable growth.

Negative Factors

Legal Challenges

Legal actions from government bodies can pose significant operational risks, potentially affecting regulatory compliance and financial stability.

Cash Flow Challenges

Negative free cash flow growth indicates liquidity issues, which could constrain investment capabilities and affect long-term financial health.

Regulatory Dependence

Dependence on government-regulated tariffs can limit pricing flexibility and revenue growth, posing a risk if regulatory conditions change unfavorably.

Edenor SA Business Overview & Revenue Model

Company Description

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima engages in the distribution and sale of electricity in Argentina. The company was incorporated in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima is a subsidiary of Empresa de Energía del Cono Sur S.A.

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 a strong recovery in its income statement with impressive revenue and profit growth. The balance sheet is stable with low leverage and strong equity returns. However, cash flow management remains a concern, with negative free cash flow growth indicating potential liquidity challenges. Overall, the company is on a positive trajectory but needs to address cash flow issues to sustain growth.

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	2.45T	2.04T	701.10B	1.40T	688.50B	268.39B
Gross Profit	450.86B	394.60B	27.73B	50.82B	88.49B	39.74B
EBITDA	713.27B	199.76B	586.64B	706.74B	187.58B	-15.21B
Net Income	280.34B	272.13B	48.37B	-44.01B	-129.47B	-52.02B
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	-31.04B	-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: 31.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 31.45 is above the 20-day moving average (MA) of 29.89, above the 50-day MA of 22.28, and above the 200-day MA of 28.33, indicating a bullish trend. The MACD of 2.90 indicates Positive momentum. The RSI at 59.82 is Neutral, neither overbought nor oversold. The STOCH value of 34.05 is Neutral, 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	80 Outperform	$2.52B	14.32	13.07%	2.39%	-4.16%	-40.47%
EBR	70 Outperform	―	―	-5.50%	5.72%	1.52%	-159.17%
EDN	68 Neutral	$1.64B	5.43	13.91%	―	2.98%	―
POR	67 Neutral	$5.56B	17.93	7.99%	4.48%	7.53%	-17.59%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GNE	58 Neutral	$386.82M	75.18	3.60%	2.05%	13.12%	29.97%
ENIC	56 Neutral	$5.34B	76.88	1.30%	5.79%	-25.78%	-91.93%

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.