EDP-Energias De PortugalLTS:0OF7 +3.24%72 Return-on-Tangible-Equity is 52.83% as of Mar. 2026, which is 49% above its 10-year median of 35.56. GuruFocus rates LTS:0OF7 with a GF Score™ of 72/100 and a GF Value™ of €3.71 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 496 Utilities - Regulated companies, EDP-Energias De Portugal ranks better than 85.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. EDP-Energias De Portugal's annualized net income for the quarter that ended in Mar. 2026 was €1,511 Mil. EDP-Energias De Portugal's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,860 Mil. Therefore, EDP-Energias De Portugal's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 52.83%.
The historical rank and industry rank for EDP-Energias De Portugal's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0OF7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.77 Med: 35.56 Max: 310.14
Current: 36.97
During the past 13 years, EDP-Energias De Portugal's highest Return-on-Tangible-Equity was 310.14%. The lowest was 22.77%. And the median was 35.56%.
LTS:0OF7's Return-on-Tangible-Equity is ranked better than 85.48% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs LTS:0OF7: 36.97
EDP-Energias De Portugal (LTS:0OF7) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
EDP-Energias De Portugal Return-on-Tangible-Equity Related Terms
EDP-Energias De Portugal Return-on-Tangible-Equity Historical Data
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The historical data trend for EDP-Energias De Portugal's Return-on-Tangible-Equity 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.
EDP-Energias De Portugal Return-on-Tangible-Equity Chart
LTS:0OF7 vs SRE, AES: Return-on-Tangible-Equity Comparison
For the Utilities - Diversified subindustry, EDP-Energias De Portugal's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Energias De Portugal Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, EDP-Energias De Portugal's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EDP-Energias De Portugal's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 52.83% mean?
EDP-Energias De Portugal (LTS:0OF7) has a Return-on-Tangible-Equity of 52.83% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EDP-Energias De Portugal and its competitors. This is 49% above median its historical median of 35.56. Over the past decade, EDP-Energias De Portugal's Return-on-Tangible-Equity has ranged from 22.77 to 310.14. According to the industry distribution chart, EDP-Energias De Portugal ranks #72 out of 496 companies in the Utilities - Regulated industry, placing it in the top 14.5%.
Is EDP-Energias De Portugal's Return-on-Tangible-Equity too high?
EDP-Energias De Portugal's current Return-on-Tangible-Equity of 52.83% is 49% above median its 10-year median of 35.56. Over the past 10 years, this metric has ranged from a low of 22.77 to a high of 310.14. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. EDP-Energias De Portugal's value of 52.83% is 384.2% above this industry median. Based on the distribution chart, EDP-Energias De Portugal ranks #72 out of 496 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, EDP-Energias De Portugal has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EDP-Energias De Portugal's Return-on-Tangible-Equity compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, EDP-Energias De Portugal ranks #72 out of 496 companies for Return-on-Tangible-Equity. This places EDP-Energias De Portugal in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.91. EDP-Energias De Portugal's value of 52.83% is 384.2% above this benchmark. Historically, EDP-Energias De Portugal's own Return-on-Tangible-Equity has ranged from 22.77 to 310.14 over the past decade. While the company's 10-year median is 35.56 vs. the industry median of 10.91, EDP-Energias De Portugal 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 Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EDP-Energias De Portugal's current Return-on-Tangible-Equity of 52.83% is 384.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on EDP-Energias De Portugal and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDP-Energias De Portugal's current Return-on-Tangible-Equity is 52.83%, which is 49% above median its own 10-year median of 35.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EDP-Energias De Portugal stock overvalued right now?
Based on GuruFocus' analysis, EDP-Energias De Portugal (LTS:0OF7) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.71, compared to a current price of €4.68 — trading 26.1% above its estimated fair value. The current Return-on-Tangible-Equity is 52.83%, which is 49% above median its 10-year median of 35.56 and 384.2% above the Utilities - Regulated industry median of 10.91. EDP-Energias De Portugal's overall GF Score™ is 72/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For EDP-Energias De Portugal (LTS:0OF7), the current Return-on-Tangible-Equity is 52.83% as of Mar. 2026. 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-Energias De Portugal (LTS:0OF7) Overvalued in 2026?
Based on GuruFocus' analysis, EDP-Energias De Portugal stock appears to be overvalued.
The current stock price of €4.68 is trading 26.1% above its estimated GF Value™ of €3.71.
GuruFocus considers EDP-Energias De Portugal to be Modestly Overvalued.
Key valuation signals for LTS:0OF7:
Return-on-Tangible-Equity: 52.83% (49% above median its 10-year median of 35.56)
GF Value™: €3.71 vs. price of €4.68 (26.1% above fair value)
Industry Position: 384.2% above the Utilities - Regulated median (#72 of 496)
No single metric tells the full story. See the LTS:0OF7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EDP is a vertically integrated utility company and is the largest generator, supplier, and distributor of electricity in Portugal. In addition to Portugal, EDP has sizable operations in Spain, Brazil, and the US. EDP owns 71% of EDP Renovaveis, the fourth-largest wind power owner/operator in the world. EDP delisted Energias do Brasil in August 2023 after buying out the 46% minorities.
72GF Score
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