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↑Improving
- Deeply Negative Free Cash Flow→Stable
- High Leverage Value Trap↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026
Empresa Distribuidora Y Comerci (EDN) Stock Analysis
Falling Knife setup · Sector Rotation edge
Utilities · Utilities - Regulated Electric
Sell if holding. Engine safety override at $17.03: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 9.8:1 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 $17.03: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 9.8:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross, below all MAs, RSI 19, MACD bearish. Score 5.2/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 7d<=7d. Suitability: speculative.
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. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Growth below the gate floor. Component breakdown shows what dragged the score down.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 $17.03: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 9.8:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross, below all MAs, RSI 19, MACD bearish. Prior stop was $16.38. Score 5.2/10, moderate confidence.
Analyst target: $32.73 (+92.2% upside). Prior stop was $16.38. Stop-loss: $16.38.
Cyclical trap - fwd PE 13x vs trail 4x (3.1x); Quality below floor (3.0 < 4.0).
Empresa Distribuidora Y Comerci trades at a P/E of 4.0 (forward 12.5). TrendMatrix value score: 9.3/10. Verdict: Sell.
5 analysts cover EDN with a consensus score of 4.2/5. Average price target: $39.
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.