Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) American Depositary Shares (EDN)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a simple business with durable economics and a price that leaves room for error. Edenor is a regulated electricity distributor in Argentina, operating an essential network: 85 transformation substations, 1,594 km of high-voltage lines, and 19,845 transformers. That can create a local monopoly, a narrow moat, but in Argentina the regulator, tariffs, inflation, and politics often determine returns more than the asset base does. In fiscal Q2 2026, revenue was $918.5B and net income was $31.3B, a 3.41% margin. The provided data lists profit growth of 147.49% and revenue growth of 0.00%, which suggests cost, price, or accounting effects rather than broad demand expansion. Returns are modest: FairStock calculates ROE of 9.59% and ROCE of 3.09%, and a Piotroski F-Score of 5/9. The balance sheet shows D/E of 0.62, but the Altman Z-Score is 0.30, a distress-level reading. Trailing free cash flow is negative $115.3B, with a FairStock FCF yield of -9361.2%, so reported cash generation is a serious red flag. Valuation is where the contradiction is stark. At the 2026-10-13 close of $20.67, FairStock calculates P/E 6.19, P/B 0.50, EV/EBITDA 1.36, and a Graham Number of $486.20, implying a 95.75% margin of safety. A PEG of 0.04 and FairStock Score of 83/100 look attractive. Yet beta is -0.10 and the 52-week range is $16.62-$36.70. FairStock assigns no Lynch category because only 0 years of filed results are available, needing 3. This may be statistically cheap but not necessarily safe.

In plain English: Edenor delivers electricity in Argentina through a large network of substations, transformers, and power lines. In the latest reported quarter, fiscal Q2 2026, it had $918.5B in revenue and $31.3B in net income, so it is profitable but only barely, with a 3.41% profit margin. The stock looks very cheap on paper compared with its earnings and book value, but negative cash flow and heavy exposure to Argentine rules make it a risky cheap, not a safe cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer