EDP RenewablesFRA:EDW -0.30%74 Net Margin % is 9.64% as of Dec. 2025, which is 43% below its 10-year median of 16.88. GuruFocus rates FRA:EDW with a GF Score™ of 74/100 and a GF Value™ of €15.18 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 421 Utilities - Independent Power Producers companies, EDP Renewables ranks better than 55.11% on this metric.
Net margin is calculated as Net Income divided by its Revenue. EDP Renewables's Net Income for the
six
months ended in Dec. 2025 was €122 Mil. EDP Renewables's Revenue for the
six
months ended in Dec. 2025 was €1,268 Mil. Therefore, EDP Renewables's net margin for the quarter that ended in Dec. 2025 was 9.64%.
The historical rank and industry rank for EDP Renewables's Net Margin % or its related term are showing as below:
FRA:EDW'
s Net Margin % Range Over the Past 10 Years
Min: -24.03 Med: 16.88 Max: 37.23
Current: 8.02
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
EDP Renewables Net Margin % Related Terms
EDP Renewables Net Margin % Historical Data
* Premium members only.
The historical data trend for EDP Renewables's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Renewable subindustry, EDP Renewables's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EDP Renewables Net Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, EDP Renewables's Net Margin % distribution charts can be found below:
* The bar in red indicates where EDP Renewables's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EDP Renewables (FRA:EDW) has a Net Margin % of 9.64% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on EDP Renewables and its competitors. This is 43% below median its historical median of 16.88. According to the industry distribution chart, EDP Renewables ranks #189 out of 421 companies in the Utilities - Independent Power Producers industry, placing it in the top 44.9%.
Is EDP Renewables' Net Margin % too high?
EDP Renewables' current Net Margin % of 9.64% is 43% below median its 10-year median of 16.88. The Utilities - Independent Power Producers industry median Net Margin % is 6.17. EDP Renewables' value of 9.64% is 56.2% above this industry median. Based on the distribution chart, EDP Renewables ranks #189 out of 421 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, EDP Renewables has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EDP Renewables' Net Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, EDP Renewables ranks #189 out of 421 companies for Net Margin %. This puts EDP Renewables in the upper half of its industry. The industry median Net Margin % is 6.17. EDP Renewables' value of 9.64% is 56.2% above this benchmark. While the company's 10-year median is 16.88 vs. the industry median of 6.17, EDP Renewables has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Utilities - Independent Power Producers company?
The median Net Margin % among Utilities - Independent Power Producers companies is 6.17, based on 421 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EDP Renewables's current Net Margin % of 9.64% is 56.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on EDP Renewables and its competitors. For the Utilities - Independent Power Producers industry, the median Net Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDP Renewables's current Net Margin % is 9.64%, which is 43% below median its own 10-year median of 16.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EDP Renewables stock overvalued right now?
Based on GuruFocus' analysis, EDP Renewables (FRA:EDW) is currently considered Modestly Undervalued. The stock's GF Value™ is €15.18, compared to a current price of €13.33 — trading 12.2% below its estimated fair value. The current Net Margin % is 9.64%, which is 43% below median its 10-year median of 16.88 and 56.2% above the Utilities - Independent Power Producers industry median of 6.17. EDP Renewables' overall GF Score™ is 74/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For EDP Renewables (FRA:EDW), the current Net Margin % is 9.64% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is EDP Renewables (FRA:EDW) Overvalued in 2026?
Based on GuruFocus' analysis, EDP Renewables stock appears to be undervalued.
The current stock price of €13.33 is trading 12.2% below its estimated GF Value™ of €15.18.
GuruFocus considers EDP Renewables to be Modestly Undervalued.
Key valuation signals for FRA:EDW:
Net Margin %: 9.64% (43% below median its 10-year median of 16.88)
GF Value™: €15.18 vs. price of €13.33 (12.2% below fair value)
Industry Position: 56.2% above the Utilities - Independent Power Producers median (#189 of 421)
No single metric tells the full story. See the FRA:EDW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EDP Renovaveis, a 71%-owned subsidiary of integrated Portuguese utility EDP, was created in 2007. It builds, develops, and operates renewable plants, mostly wind and solar. With 20.4 gigawatts of installed capacity at end-2025, EDP Renovaveis is the third-largest European renewables player. The group's plants are mainly located in the U.S, Spain, Portugal, Poland, and Brazil.
74GF Score
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