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EDN vs RNW

EDN
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima
NEUTRAL
Price
$25.33
Market Cap
$1.21B
Sector
Utilities
AI Confidence
80%
RNW
ReNew Energy Global Plc
NEUTRAL
Price
$4.99
Market Cap
$1.82B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
EDN
6.38
RNW
13.86
Forward P/E
EDN
745.0
RNW
17.61
P/B Ratio
EDN
0.68
RNW
1.37
P/S Ratio
EDN
0.0
RNW
0.01
EV/EBITDA
EDN
1.11
RNW
8.03

Profitability

Gross Margin
EDN
22.75%
RNW
83.77%
Operating Margin
EDN
5.25%
RNW
38.05%
Profit Margin
EDN
8.0%
RNW
9.25%
ROE
EDN
11.38%
RNW
9.51%
ROA
EDN
1.7%
RNW
3.97%

Growth

Revenue Growth
EDN
5.6%
RNW
36.1%
Earnings Growth
EDN
858.4%
RNW
--

Financial Health

Debt/Equity
EDN
0.54
RNW
5.46
Current Ratio
EDN
1.07
RNW
0.57
Quick Ratio
EDN
0.9
RNW
0.39

Dividends

Dividend Yield
EDN
--
RNW
--
Payout Ratio
EDN
0.0%
RNW
0.0%

AI Verdict

EDN NEUTRAL

EDN presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 and a bearish technical trend (0/100). While the stock is significantly undervalued relative to its Graham Number ($57.62) and Intrinsic Value ($117.12), the financial health is deteriorating. The most alarming metric is the Forward P/E of 745.00, suggesting a projected collapse in earnings. Despite strong ROE and low debt relative to the utilities sector, the extreme volatility in quarterly earnings surprises indicates low-quality earnings that undermine the deep-value thesis.

Strengths
Deeply undervalued P/E (6.38) relative to sector average (27.62)
Trading below book value (P/B 0.68)
Debt/Equity (0.54) is significantly lower than the sector average (1.62)
Risks
Weak financial health indicated by Piotroski F-Score of 3/9
Extreme Forward P/E (745.00) signaling a sharp expected earnings decline
Severe technical bearishness (0/100 trend score)
RNW NEUTRAL

RNW presents a complex profile with a stable Piotroski F-Score of 6/9, but severe balance sheet vulnerabilities. While the stock trades below its Graham Number ($5.43) and exhibits a very attractive P/E ratio relative to the utilities sector, its Debt/Equity ratio of 5.46 and a Current Ratio of 0.57 indicate significant leverage and liquidity risks. Strong revenue growth (36.10%) and high operating margins are offset by extreme earnings volatility and a bearish technical trend. The valuation appears cheap, but the risk premium is justified by the financial instability.

Strengths
Strong revenue growth of 36.10% YoY
High operating margin (38.05%) and gross margin (83.77%)
P/E ratio (13.86) is significantly lower than the sector average (27.63)
Risks
Extreme leverage with a Debt/Equity ratio of 5.46
Poor short-term liquidity (Current Ratio 0.57, Quick Ratio 0.39)
High earnings volatility with frequent swings between large losses and gains

Compare Another Pair

EDN vs RNW: Head-to-Head Comparison

This page compares Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) and ReNew Energy Global Plc (RNW) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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