A forward multiple of 845x against a trailing multiple of 6x signals an imminent and dramatic earnings collapse; combined with free cash flow that is deeply negative at -150% of net income, a 2.3x debt-to-equity ratio flagged as a value-trap, and earnings that have already decelerated from a quarterly peak of $2.93 to $0.80 in the most recent period, the quality and financial profile fall well below the minimum threshold for a constructive position.
Thesis pillars
- Cyclical Earnings Trap Risk→Stable
- Deeply Negative Free Cash Flow→Stable
- High Leverage Value Trap→Stable
- +1 more pillar — see the Why tab for full reasoning
Empresa Distribuidora Y Comerci (EDN) Stock Analysis
Inst Constrain edge
Utilities · Utilities - Regulated Electric
Sell if holding. Engine safety override at $24.28: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima engages in the distribution and sale of electricity in Argentina. The company operates an electrical power distribution system that consists of 85 transformation substations and interconnections with high voltage... Read more
Sell if holding. Engine safety override at $24.28: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 34d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $24.28: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $23.03. Score 5.8/10, moderate confidence.
Take-profit target: $31.45 (+29.5% upside). Prior stop was $23.03. Stop-loss: $23.03.
Quality below floor (3.7 < 4.0); Value-trap signals (2/5): High leverage (D/E 2.3), Negative free cash flow.
Empresa Distribuidora Y Comerci trades at a P/E of 5.1 (forward 8.5). TrendMatrix value score: 9.8/10. Verdict: Sell.
5 analysts cover EDN with a consensus score of 4.2/5. Average price target: $37.
What does Empresa Distribuidora Y Comerci do?Empresa Distribuidora y Comercializadora Norte Sociedad Anónima engages in the distribution and sale of electricity in...
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima engages in the distribution and sale of electricity in Argentina. The company operates an electrical power distribution system that consists of 85 transformation substations and interconnections with high voltage customers with 20,295 MVA of installed power and 1,594 km of high voltage networks; and MV/LV and MV/MV distribution system comprises 19,845 transformers with 10,137 MVA of installed power, 12,732 km of medium voltage networks, and 28,590 km of low voltage networks. It serves approximately 3.39 million customers. The company was formerly known as Empresa Distribuidora Norte Sociedad Anónima and changed its name to Empresa Distribuidora y Comercializadora Norte Sociedad Anónima in January 1997. The company was founded in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima operates as a subsidiary of Empresa de Energía del Cono Sur S.A.