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Fundamentals of Europe’s Best Electric Companies :
Company
Debt/Equity (D/E)
P/E Ratio
ROCE (%)
EDF Group
1.8x
12.5x
8.2%
Enel
1.5x
9.8x
10.5%
E.ON
1.2x
14.3x
7.6%
Iberdrola
1.3x
15.0x
9.1%
RWE
0.9x
11.2x
8.7%
National Grid
2.1x
18.6x
6.4%
Vattenfall
1.0x
N/A (State)
7.9%
Fortum
0.7x
13.4x
6.8%
SSE
1.4x
16.2x
7.5%
Uniper
1.6x
10.8x
8.0%
Best Overall Picks
Enel (Italy)
Why? Strong fundamentals with the highest ROCE (10.5%), low P/E (9.8x), and manageable D/E (1.5x).
Catalyst: Global renewable energy expansion and efficient capital allocation.
RWE (Germany)
Why? Low D/E (0.9x), solid ROCE (8.7%), and reasonable P/E (11.2x).
Catalyst: Aggressive shift to renewables with strong German government backing.
Best Value Pick
EDF Group (France)
Why? Undervalued (P/E 12.5x) despite high leverage (D/E 1.8x), with ROCE (8.2%) improving post-nuclear restructuring.
Risk: Debt burden from nuclear maintenance.
Best Growth Pick
Iberdrola (Spain)
Why? High ROCE (9.1%), moderate D/E (1.3x), and leading global wind energy presence.
Catalyst: Massive offshore wind investments in the US and EU.
Best Defensive Pick
National Grid (UK)
Why? Stable cash flows despite high D/E (2.1x) and low ROCE (6.4%), with a premium P/E (18.6x).
Risk: Regulatory pressures in UK/US markets.
Avoid / High Risk
Vattenfall (Sweden) – No clear valuation (state-owned).
Fortum (Finland) – Low growth, low ROCE (6.8%).
Piotroski Analysis of Europe’s Best Electric Stocks (2025) :
Company
F-Score (9)
Strengths
Weaknesses
Enel
8 ★
High ROA, strong CFO, low accruals
Slightly rising debt
RWE
7 ★
Improving ROA, negative accruals
Declining asset turnover
Iberdrola
7 ★
High CFO, stable leverage
Moderate gross margin decline
EDF Group
6
Positive net income, improving ROA
High debt/equity, weak liquidity
E.ON
6
Stable CFO, low accruals
Low asset turnover
National Grid
5
Strong CFO, low accruals
High leverage, poor ROA
Uniper
5
Improving net income
Volatile CFO, high debt
SSE
5
Stable gross margin
Rising debt, low ROA
Fortum
4
Low debt
Negative CFO, poor asset turnover
Top Picks :
Top Picks (F-Score ≥7)
Enel (8/9): Best overall financial health (strong profitability, cash flow).
RWE (7/9): Efficient debt management and improving returns.
Iberdrola (7/9): Balanced growth with stable cash flows.
Moderate Risk (F-Score 5-6)
EDF, E.ON, National Grid: Face leverage or operational inefficiencies but have redeeming metrics (e.g., EDF’s improving ROA).
High Risk (F-Score ≤4)
Fortum, Uniper, SSE: Weak cash flows or rising debt burdens.
Credit Rating Analysis for Europe’s Best Electric Stocks :
Company
Moody’s
S&P
Fitch
Outlook
EDF Group
Baa1
BBB+
BBB+
Stable
Enel
Baa2
BBB
BBB
Positive
E.ON
A3
A-
A-
Stable
Iberdrola
A3
A-
A-
Positive
RWE
Baa1
BBB+
BBB+
Positive
National Grid
A1
A
A+
Stable
Vattenfall
Aa3
AA-
AA-
Stable
Fortum
Baa1
BBB+
BBB+
Negative
SSE
A3
A-
A-
Stable
Uniper
Baa3
BBB-
BBB-
Positive
Key Highlights
Top Ratings: Vattenfall (AA-/Aa3), National Grid (A+/A1)
Improving Outlooks: Enel, Iberdrola, RWE, Uniper
Risk Watch: Fortum (only Negative outlook)
Final Words : Future Investment Analysis for Electric Stocks of Europe
Company
Future Prospects
Financial Strength
EDF Group
Neutral to Weak
Weak
Enel
Strong
Strong
E.ON
Neutral
Strong
Iberdrola
Strong
Strong
RWE
Strong
Strong
National Grid
Neutral
Very Strong
Vattenfall
Strong
Very Strong
Fortum
Weak
Weak
SSE
Neutral
Strong
Uniper
Weak to Neutral
Weak
Investment Possibilities (Short-Term & Long-Term)
Company
Short-Term Investment Potential
Long-Term Investment Potential
EDF Group
Bad (High Debt & Low Profitability)
Neutral (High Risk)
Enel
Good (Strong Outlook, Resilient)
Very Good (Renewable Transition)
E.ON
Neutral (Stable but moderate growth)
Good (Renewable Focus)
Iberdrola
Good (Strong Financials, Growth)
Very Good (Renewable Growth)
RWE
Neutral (Debt Reduction)
Good (Renewable Shift)
National Grid
Neutral (Stable but limited growth)
Neutral (Limited Growth Potential)
Vattenfall
Good (Strong Outlook)
Very Good (Renewables & Green Shift)
Fortum
Bad (Negative Outlook)
Neutral (Debt Issues)
SSE
Neutral (Solid but Competitive)
Good (Renewable Shift)
Uniper
Bad (Weak Financial Strength)
Neutral (Energy Transition Risks)
Top Picks (for Investment)
Iberdrola – Strong fundamentals and long-term growth potential driven by renewable energy investments.
Enel – Positive outlook, financial strength, and good short- and long-term prospects, especially in renewables.
Vattenfall – Strong financial stability and a positive future with its focus on renewable energy.
RWE – Good long-term prospects due to its transition towards renewable energy and strong financials.
SSE – Solid performance in the energy sector with good long-term potential in renewables.
Analysis Summary
Good Investment Options: Companies like Iberdrola, Enel, Vattenfall, and RWE show strong prospects both in the short and long term, particularly in the shift towards renewable energy, which is expected to grow in the coming decades.
Moderate/Neutral Potential: E.ON, National Grid, and SSE are stable but face more limited growth opportunities in comparison, especially in the near term.
Companies with Caution: EDF Group, Fortum, and Uniper are seen as riskier investments due to financial issues, negative outlooks, or weak credit ratings.
So this is it for full stocks analysis of Europe’s best electric stocks. You can see that most of the fundamentals like Piotroski analysis are given here and you can decide for yourself from this data that which would be the best shares for you.
