Edenor SA (EDN) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: N/A
• Average Volume (3M): 230.89K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.78
• 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: 0.12
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -16.97
• Enterprise Value/Market Cap: 0.81
• 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: 73 Outperform
• Price Target: $38.00 ▲(19.05% Upside)

Edenor SA's stock is rated positively due to strong financial performance, particularly in revenue and profit growth, and a stable balance sheet. The technical analysis supports a bullish outlook, with the stock trading above key moving averages. The valuation is attractive with a low P/E ratio. However, cash flow challenges need to be addressed to ensure sustainable 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

Edenor SA (EDN) is one of the largest electricity distribution companies in Argentina, primarily operating in the Buenos Aires metropolitan area. The company is engaged in the distribution and commercialization of electricity, serving millions of customers across residential, commercial, and industrial sectors. Edenor is responsible for the maintenance and operation of the electric power distribution network, ensuring reliable service and infrastructure development to meet growing energy demands.

How the Company Makes Money

Edenor generates revenue primarily through the sale of electricity to its customers. The company operates under a regulated tariff structure, where prices for electricity distribution are set by the government, allowing it to earn a stable income based on customer consumption. Key revenue streams include residential, commercial, and industrial electricity sales, as well as connections and service fees. Additionally, Edenor benefits from government subsidies and financial incentives aimed at improving infrastructure and expanding access to electricity. The company may also engage in partnerships with local and international firms for technological upgrades and renewable energy projects, contributing to its earnings and efficiency improvements.

Edenor SA Financial Statement Overview

Summary

Edenor SA shows strong revenue and profit growth, with a healthy 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	2.45T	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: Neutral
• Last Price: 31.92
• 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 Neutral. The current price of 31.92 is below the 20-day moving average (MA) of 32.57, above the 50-day MA of 26.99, and above the 200-day MA of 27.91, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 29.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EDN.

Edenor SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPU	76 Outperform	$2.77B	11.12	13.07%	2.09%	-4.16%	-40.47%
EDN	73 Outperform	$1.59B	7.89	13.91%	―	2.98%	―
POR	70 Outperform	$5.38B	17.35	7.99%	4.29%	7.53%	-17.59%
EBR	70 Outperform	―	―	-5.50%	5.72%	1.52%	-159.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENIC	56 Neutral	$5.39B	78.70	1.30%	5.72%	-25.78%	-91.93%
GNE	54 Neutral	$369.07M	71.73	3.60%	2.11%	13.12%	29.97%

Edenor SA Corporate Events

Edenor SA Releases Q3 2025 Financial Results

Edenor SA has released its condensed interim consolidated financial statements for the nine and three-month periods ending on September 30, 2025. These statements, presented in millions of constant pesos, provide a comparative analysis with the previous year. This financial disclosure is crucial for stakeholders as it offers insights into the company’s current financial health and operational performance, impacting its market positioning and investor confidence.

Edenor SA Reports Strong Financial Results for Q3 2025

On November 6, 2025, Edenor SA’s Board of Directors approved the company’s financial statements for the period ending September 30, 2025. The company reported a profit of 179,461 million ARS, with total equity amounting to 2,017,570 million ARS. This financial performance reflects Edenor’s stable position in the energy distribution market, with significant equity and retained earnings, indicating a solid foundation for future operations.

Edenor Reports Strong Financial Performance with Increased Investments

On November 6, 2025, Edenor SA announced its financial results for the period ending September 30, 2025, reporting a profit of ARS 179,461 million. The company experienced a 14% increase in revenue and an 8% rise in distribution margin compared to the previous year, attributed to electricity rate adjustments. Edenor’s EBITDA reached ARS 439,928 million, reflecting operational improvements and cost optimization, while investments totaled ARS 283,079 million, underscoring its dedication to service enhancement. Despite a slight increase in energy losses due to seasonality, electricity sales rose by 0.1%, and customer numbers grew by 1.6%.

Edenor SA Approves Interim Financial Statements for September 2025

On November 6, 2025, Edenor SA’s Board of Directors convened remotely to approve the interim financial statements for the nine-month period ending September 30, 2025. The meeting, conducted via Microsoft Teams, confirmed the financial health of the company and authorized the Chairman to sign the statements. This approval signifies Edenor’s continued compliance with regulatory requirements and its commitment to transparency in financial reporting, which is crucial for maintaining stakeholder trust and industry credibility.

Edenor SA Reports Strong Third Quarter 2025 Financial Results

Edenor SA announced its financial results for the third quarter of 2025, highlighting a significant improvement in EBITDA, which reached ARS 133.3 billion, up from ARS 60.2 billion in the same period last year. This increase was largely driven by tariff adjustments and operational efficiencies. The company also completed a five-year tariff review, resulting in a 319.2% nominal increase since February 2024, and successfully regularized its debt with CAMMESA, positively impacting its financial standing. Despite a slight decrease in energy sales volume, Edenor’s investments and operational improvements have strengthened its market position, as evidenced by an upgrade in its credit rating.

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.