(EDPR) EDP Renovaveis - Ratings and Ratios

EDP Renováveis, S.A. (EDPR) is a leading global renewable energy company specializing in the development, construction, operation, and maintenance of wind and solar farms. As a subsidiary of EDP - Energias de Portugal, S.A., EDPR leverages its parent companys extensive expertise in the energy sector to deliver clean electricity solutions worldwide. With a diverse portfolio spanning 16 countries, the company has established itself as a key player in the transition to renewable energy.

As of December 31, 2023, EDPRs installed capacity totals 13,616 megawatts (MW) across its global operations. This includes 6,891 MW in the United States, 2,042 MW in Spain, 1,413 MW in Portugal, and 1,165 MW in Brazil, among other regions. The companys strategic focus on high-growth markets, coupled with its expertise in onshore wind and solar technologies, positions it well to capitalize on increasing global demand for renewable energy.

From a technical standpoint, EDPRs stock (Ticker: EDPR) on the Lisbon Stock Exchange (LS) has shown recent price movements, with a last price of 7.95 EUR. The stocks short-term trend, as indicated by the SMA 20 (7.54), suggests a recent uptick, while the SMA 50 (8.06) and SMA 200 (11.17) reflect broader market dynamics. The average true range (ATR) of 0.33 highlights moderate volatility, with an average volume of 1,325,475 shares traded over the past 20 days.

Fundamentally, EDPRs market capitalization stands at 7,980.93M EUR, reflecting its significant scale in the renewable energy sector. The forward P/E ratio of 21.60 indicates investor expectations for future earnings growth, though the current P/E ratio is not available. The price-to-book (P/B) ratio of 0.73 suggests that the stock may be undervalued relative to its book value, while the price-to-sales (P/S) ratio of 3.96 reflects the companys revenue-generation capabilities. However, the return on equity (RoE) of -4.88% raises concerns about profitability, potentially linked to high debt levels or operational inefficiencies.

Looking ahead, EDPRs 3-month forecast is expected to be influenced by both technical and fundamental factors. Technically, the stock may face resistance at the SMA 50 level of 8.06, with support potentially holding at the SMA 20 level of 7.54. A breakout above 8.06 could signal a bullish trend, while a breakdown below 7.54 may indicate bearish sentiment. From a fundamental perspective, EDPRs ability to improve its return on equity and reduce debt will be critical in sustaining investor confidence. Additionally, the companys continued expansion into high-growth renewable energy markets, particularly in Asia and Latin America, is expected to drive long-term growth.