Edenor SA (EDN) AI Stock Analysis

• Market Cap: $811.21M
• Dividend Yield: N/A
• Average Volume (3M): 144.33K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.64
• Revenue Growth: 11.85%
• EPS Growth: N/A
• Country: US
• Employees: 4,642
• Sector: Utilities
• Sector Strength: 59
• Industry: Regulated Electric
• EPS (TTM): 1.85
• Shares Outstanding: 22,110,500
• 10 Day Avg. Volume: 180,535
• 30 Day Avg. Volume: 144,326
• 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: 1.59
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $36.00
• Price Target Upside: 111.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $18.50 ▲(8.57% Upside)

Edenor SA's stock score is primarily driven by its strong financial performance, particularly in revenue and profit growth, and its attractive valuation with a low P/E ratio. However, technical analysis indicates bearish momentum, with the stock being oversold and trading below key moving averages. The lack of dividend yield and concerns over cash flow management also weigh on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Edenor's ability to expand its market presence and improve service efficiency, supporting long-term business stability.

Operational Efficiency

High operational efficiency indicates effective cost management and resource utilization, enhancing profitability and competitive positioning.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling Edenor to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could hinder Edenor's ability to fund operations and invest in infrastructure.

Cash Generation

Moderate cash generation relative to net income may limit Edenor's capacity to reinvest in its business, affecting long-term growth prospects.

Free Cash Flow to Net Income

A low free cash flow to net income ratio highlights cash flow constraints, potentially impacting Edenor's ability to sustain operations and meet financial obligations.

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 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: Negative
• Last Price: 17.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDN, the sentiment is Negative. The current price of 17.04 is below the 20-day moving average (MA) of 22.31, below the 50-day MA of 25.16, and below the 200-day MA of 32.78, indicating a bearish trend. The MACD of -2.27 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDN.

Edenor SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR	77 Outperform	$19.90B	15.99	6.01%	7.20%	6.41%	37.23%
POR	74 Outperform	$4.65B	15.50	8.02%	4.76%	9.78%	-6.19%
LNT	71 Outperform	$16.62B	19.98	11.94%	3.09%	4.62%	32.23%
CEPU	70 Neutral	$1.37B	8.10	9.38%	3.94%	-9.20%	-53.99%
Sector *	66 Neutral	$17.51B	18.09	5.60%	3.63%	6.62%	11.55%
EDN	63 Neutral	$811.21M	2.73	21.45%	―	11.85%	―
ENIC	61 Neutral	$5.22B	35.17	2.89%	5.94%	-19.56%	-83.31%