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

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 11.4% above cost of capital
• Revenue growth of 38.4% demonstrates strong top-line momentum
• FairStock composite score of 83/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) American Depositary Shares is a micro-cap utilities company valued at $1.2 billion. The business generates $3.0 trillion in annual revenue with a 0.6% net margin. From a quality standpoint, Empresa shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.3 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 6.4x, with offers a 95% margin of safety vs Graham Number of $476. Growth dynamics show revenue growing at 38.4% and profit growth of 61.3%. Our composite FairStock Score of 83/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Empresa's 38% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer