EDP RenewablesSTU:EDW -3.01%70 Operating Margin % is 34.34% as of Dec. 2025, which is 1% below its 10-year median of 34.67. GuruFocus rates STU:EDW with a GF Score™ of 70/100 and a GF Value™ of €15.27 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, EDP Renewables ranks better than 80.34% on this metric.
EDP Renewables SA operating margin has been in a 5-year decline. The average rate of decline per year is -6.5%.
The historical rank and industry rank for EDP Renewables's Operating Margin % or its related term are showing as below:
STU:EDW'
s Operating Margin % Range Over the Past 10 Years
Min: 19.97 Med: 34.67 Max: 42.7
Current: 33.48
STU:EDW's Operating Margin % is ranked better than 80.34% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.27
vs STU:EDW: 33.48
EDP Renewables's 5-Year Average Operating Margin % Growth Rate was -6.50% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
EDP Renewables Operating Margin % Related Terms
EDP Renewables Operating Margin % Historical Data
* Premium members only.
The historical data trend for EDP Renewables's Operating 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 Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, EDP Renewables's Operating Margin % distribution charts can be found below:
* The bar in red indicates where EDP Renewables's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
EDP Renewables's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (STU:EDW) has a Operating Margin % of 34.34% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on EDP Renewables and its competitors. This is near median its historical median of 34.67. Over the past decade, EDP Renewables' Operating Margin % has ranged from 19.97 to 42.70. According to the industry distribution chart, EDP Renewables ranks #82 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 19.7%.
Is EDP Renewables' Operating Margin % too high?
EDP Renewables' current Operating Margin % of 34.34% is near median its 10-year median of 34.67. Over the past 10 years, this metric has ranged from a low of 19.97 to a high of 42.70. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. EDP Renewables' value of 34.34% is 158.8% above this industry median. Based on the distribution chart, EDP Renewables ranks #82 out of 417 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, EDP Renewables has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EDP Renewables' Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, EDP Renewables ranks #82 out of 417 companies for Operating Margin %. This places EDP Renewables in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.27. EDP Renewables' value of 34.34% is 158.8% above this benchmark. Historically, EDP Renewables' own Operating Margin % has ranged from 19.97 to 42.70 over the past decade. While the company's 10-year median is 34.67 vs. the industry median of 13.27, 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 Operating Margin % for an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EDP Renewables's current Operating Margin % of 34.34% is 158.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on EDP Renewables and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDP Renewables's current Operating Margin % is 34.34%, which is near median its own 10-year median of 34.67. 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 (STU:EDW) is currently considered Modestly Undervalued. The stock's GF Value™ is €15.27, compared to a current price of €13.54 — trading 11.3% below its estimated fair value. The current Operating Margin % is 34.34%, which is near median its 10-year median of 34.67 and 158.8% above the Utilities - Independent Power Producers industry median of 13.27. EDP Renewables' overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For EDP Renewables (STU:EDW), the current Operating Margin % is 34.34% 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 (STU:EDW) Overvalued in 2026?
Based on GuruFocus' analysis, EDP Renewables stock appears to be undervalued.
The current stock price of €13.54 is trading 11.3% below its estimated GF Value™ of €15.27.
GuruFocus considers EDP Renewables to be Modestly Undervalued.
Key valuation signals for STU:EDW:
Operating Margin %: 34.34% (near median its 10-year median of 34.67)
GF Value™: €15.27 vs. price of €13.54 (11.3% below fair value)
Industry Position: 158.8% above the Utilities - Independent Power Producers median (#82 of 417)
No single metric tells the full story. See the STU: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.
70GF Score
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