EDP RenewablesCHIX:EDPRU 72 Pretax Margin % is 20.00% as of Dec. 2025, which is 33% below its 10-year median of 29.74. GuruFocus rates CHIX:EDPRU with a GF Score™ of 72/100 and a GF Value™ of €15.62 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 422 Utilities - Independent Power Producers companies, EDP Renewables ranks better than 68.25% on this metric.
The historical rank and industry rank for EDP Renewables's Pretax Margin % or its related term are showing as below:
CHIX:EDPRu'
s Pretax Margin % Range Over the Past 10 Years
Min: -16.5 Med: 29.74 Max: 51.27
Current: 17.69
CHIX:EDPRu's Pretax Margin % is ranked better than 68.25% of 422
companies
in the Utilities - Independent Power Producers industry
Industry Median: 8.655
vs CHIX:EDPRu: 17.69
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
EDP Renewables Pretax Margin % Related Terms
EDP Renewables Pretax Margin % Historical Data
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The historical data trend for EDP Renewables's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, EDP Renewables's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where EDP Renewables's Pretax 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 (CHIX:EDPRU) has a Pretax Margin % of 20.00% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on EDP Renewables and its competitors. This is 33% below median its historical median of 29.74. According to the industry distribution chart, EDP Renewables ranks #134 out of 422 companies in the Utilities - Independent Power Producers industry, placing it in the top 31.8%.
Is EDP Renewables' Pretax Margin % too high?
EDP Renewables' current Pretax Margin % of 20.00% is 33% below median its 10-year median of 29.74. The Utilities - Independent Power Producers industry median Pretax Margin % is 8.66. EDP Renewables' value of 20.00% is 131.1% above this industry median. Based on the distribution chart, EDP Renewables ranks #134 out of 422 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, EDP Renewables has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EDP Renewables' Pretax Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, EDP Renewables ranks #134 out of 422 companies for Pretax Margin %. This puts EDP Renewables in the upper half of its industry. The industry median Pretax Margin % is 8.66. EDP Renewables' value of 20.00% is 131.1% above this benchmark. While the company's 10-year median is 29.74 vs. the industry median of 8.66, 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 Pretax Margin % for an Utilities - Independent Power Producers company?
The median Pretax Margin % among Utilities - Independent Power Producers companies is 8.66, based on 422 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EDP Renewables's current Pretax Margin % of 20.00% is 131.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on EDP Renewables and its competitors. For the Utilities - Independent Power Producers industry, the median Pretax Margin % is 8.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDP Renewables's current Pretax Margin % is 20.00%, which is 33% below median its own 10-year median of 29.74. 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 (CHIX:EDPRU) is currently considered Modestly Undervalued. The stock's GF Value™ is €15.62, compared to a current price of €13.82 — trading 11.5% below its estimated fair value. The current Pretax Margin % is 20.00%, which is 33% below median its 10-year median of 29.74 and 131.1% above the Utilities - Independent Power Producers industry median of 8.66. EDP Renewables' overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For EDP Renewables (CHIX:EDPRU), the current Pretax Margin % is 20.00% 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 (CHIX:EDPRU) Overvalued in 2026?
Based on GuruFocus' analysis, EDP Renewables stock appears to be undervalued.
The current stock price of €13.82 is trading 11.5% below its estimated GF Value™ of €15.62.
GuruFocus considers EDP Renewables to be Modestly Undervalued.
Key valuation signals for CHIX:EDPRU:
Pretax Margin %: 20.00% (33% below median its 10-year median of 29.74)
GF Value™: €15.62 vs. price of €13.82 (11.5% below fair value)
Industry Position: 131.1% above the Utilities - Independent Power Producers median (#134 of 422)
No single metric tells the full story. See the CHIX:EDPRU 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.
72GF Score
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