The CAC 40 index gathers numerous French companies that are known worldwide and their shares, which are often very good assets to trade online or to incorporate in a portfolio of shares. EDF is among the best known and also the most profitable companies on the French stock market, its shares are accessible on most online brokers trading platforms. Here are therefore some important elements and information about this company so that you understand the analysis of EDF’s shares price.
About the company EDF:
The company EDF or Electricity of France (Eléctricité de France), is of course the current leader in the production of electricity in France, and it is also one of the most important distributors despite its recent privatization. Its turnover is generated by several different activities and here is a list of its main activities:
First, the production and the sale of electricity and of natural gas represents more than 75% of its activity. It then comes the management of its low and medium voltage electricity distribution networks and energy trading for 20%, and finally, the supply of energy services such as the engineering, construction and installation of production units or the operation and maintenance of its electric networks.
It is of course on the French market that EDF carries out most of its activities, but the company also works for other countries such as Italy, the United Kingdom and other European countries.
EDF’s main competitors:
The group EDF was once the sole and only supplier of electricity and gas in France, it belonged to the state. But this public company was privatized in 2006 and new suppliers have emerged on the French market. Today, EDF faces numerous competitors, which are important to know and to monitor from an economic point of view before taking a position on the title EDF on the stock market. Therefore, we suggest you find out more about its competitors here:
- Engie: born from the separation of EDF and GDF, this is the new name given to GDF-Suez. It is EDF’s main competitor in the sector of electricity and gas.
- Direct Energie: Is also one of the leaders in the supply of electricity in France.
- ENI: This Italian company has gradually makes itself a place in the French and European markets.
Other companies not listed on the stock market such as Happ-e, Planete Oui or Lamparis currently represent a competition to EDF as well.
EDF main partners:
EDF has also developed and made itself a reputation by establishing several strategic partnerships. Here are its main current partnerships.
EDF signed a partnership with the company Dalkia in the field of research of mechanism and prevention of scaling of thermal systems of hot water networks.
Even if it is a separate entity from Engie (formerly GDF Suez), EDF has established a strategic partnership with this new entity in order to avoid the phenomenon of Uberisation in the energy sector in France.
Finally, another partnership was also signed with the group Altran to the service of energy in France.
In addition, EDF has also put in place numerous other partnerships with smaller companies and businesses in France and in other European countries.
Analysis and Price of EDF shares:
In order to trade EDF’s shares effectively, it is of course necessary to closely monitor the historical charts, and to carry out technical and fundamental analysis based on the news and innovations.
The price of EDF shares is currently listed on the compartment A of the Euronext Paris market. The price of its shares is also taken into account in the calculation of the Stock market index Euronext 100.
The historical stock market charts of this title provide us with relevant information about its evolution over time. We can also observe a strong and stable upward trend from 2005 to November 2007, which lead this title to reach its highest price in history at €85.50 euros. This upward trend was then succeeded by a downtrend until March 2009 going as low as €27.91 euros, followed by another progression upwards until April 2010 going just above €41.
Then came a new period of decline until January 2013. Since then, we can observe a stable upward recovery, although it is not very volatile or punctuated by interesting micro-movements.
Important Stock market information about EDF:
Here is some additional information about EDF and its ranking on the stock market:
- EDF’s total market capitalization was 20 292.64 million euros in 2017.
- There are currently no less than 2 741 877 687 titles in circulation on the market
- The price of EDF shares is listed on the compartment A in the Euronext Paris market.
- EDF is part of the calculation of the stock market Index CAC 40 and it ranks among the top 20 largest stock market capitalizations in France.
Thanks to the information you just find out here, you will now be able to start implementing a profitable and efficient investment strategy to speculate on EDF share’s price and its evolution over time.
What influences the ranking of EDF shares:
The elements that influence the price of EDF shares and its quotation are the following:
- The energy market in general and particularly in France
- Technological advances, especially concerning green energy
- The price of oil and gas, which have a direct influence on the market
Some key figures that you should know about EDF:
To help you make a better analysis about the evolution of the price of this title in the stock market, here are some key figures that you should know about this group:
- 38.5 million: was the number of EDF’s customers around the world in 2015. 27.8 million just in France.
- 642.6 TWh: Was the amount of energy produced by EDF in 2012.
- 72.9 billion euros: Was the turnover generated by EDF in 2015
- 33.3 billion euros: Was EDF’s net debt in 2011
- 3 billion euros: Was the net result of EDF in 2011
- 29 million euros: Was the amount of dividends paid to the shareholders of the group in 2007.
- 186 466 million euros: Was the amount of EDF’s infrastructure in 2010. The latter made it possible to classify the group in the first place among the largest proprietary companies in the world.
Evolution of EDF’s turnover and its profits over the time:
Over the last ten years, the turnover generated by the EDF group has evolved considerably as has the number of employees of the company. Thus, while it employed 158,842 people in 2011 including 43,192 in its subsidiaries RTE and ERDF and 35,173 in its "Production and Engineering” branch, the EDF group had a total of 158,467 employees in 2013, including 129,492 employees just in France.
As for the company's results, in 2015, EDF recorded an increase of 2.8% in its turnover in the first 9 months. It then reached the 75 billion euros that year.
In 2017, the results published for the year 2016 showed a current net income of 4.1 billion euros and a turnover of 71.2 billion euros.
Who are the main shareholders of the group EDF?
Here is the distribution of the shareholding of the group EDF by the end of the year 2016:
- The French state still owns 85.60% of EDF’s shares
- 2.63% belongs to non-French European institutional investors
- 5.01% belongs to institutional investors in the rest of the world
- 2.13% belongs to institutional investors in France
- 1.57% belong to employee shareholders
- Finally, 0.13% are treasury shares
EDF’s strategy in the sector of renewable energies:
Like all the major energy producers and distributors, EDF has faced some ecological constraints in the recent years and it has invested a lot in renewable energies through its subsidiary EDF Energies Nouvelles. We invite you to find out more about EDF’s involvement in this sector:
- EDF and onshore wind energy: This is EDF’s largest renewable energy production activity, since it represents more than 86% of the total capacity installed in Europe, North America, Africa and the Middle East. In total, EDF manages an onshore wind farm distributed in 15 different countries and producing more than 6.84 GW. This electricity is mainly destined to the American market but also to France, Turkey and United Kingdom.
- EDF and offshore wind energy: the group EDF also operates several offshore wind farms, particularly in Belgium and the United Kingdom. There are also three large farms in France at Fecamp, Courseulles sur Mer and Saint Nazaire for a total production of 1500 MW of power.
- EDF and hydroelectricity: EDF is also a major player in the production of hydroelectric power. The group produces more than 45 billion KWh of hydroelectricity each year through the operation of 640 dams and 439 hydroelectric power plants in France. EDF also carries out this activity in Africa particularly in Cameroon, where it is shareholder of the Nachtigal hydroelectric power plant through the intermediary company NHPV for Nachtigal Hydro Power Company. This power plant was set up after an agreement between EDF and the state of Cameroon in 2016. In 2017, EDF obtained a concession for the operation of the Nachtigal hydroelectric power plant for a period of 35 years. Let’s notice that this one should be completed in 2021 and could produce more than 420 MW.
- EDF and solar energy: The group EDF is currently the European leader in the production of solar energy. It currently manages numerous solar parks in several countries including France, Spain, Italy, Greece, Israel, India, United States and Canada. EDF is also in change of several solar parks on roofs of industrial, commercial and community buildings. It should be notice that EDF also invests a lot in solar energy in the rest of the world, particularly in Chile and Africa.
The analysis of the shares put in place by EDF in the sector of renewable energy should be taken into account when you trade this title on the stock market because it is a market with a lot of future in every country in the world.
Analysis of the advantages and disadvantages of EDF and of its shares:
Understanding the advantages and disadvantages of EDF will allow you to understand better the possibilities of evolution of this title in the stock market.
Among the group’s advantages, we can mention its significant research and development capacity which allows it to innovate constantly. EDF is also able of doing vertical integration operations and develop in new markets since its liberalization. It is the only group that has set up a real international development strategy.
But EDF also has some disadvantages. It is particularly exposed to competition since the emergence of several opponents following the opening of new markets. In addition, its production capacity is starting to saturate while the European directives impose limits on greenhouse gas emissions.
However, the future holds some good opportunities for the group EDF with a particularly competitive and powerful production fleet and an increasingly important presence in the sector of renewable energy. EDF currently holds more than 80% of the market shares of electricity in France despite the increasing number of competitors. Of course, It benefits from an important corporate culture and is very well positioned on the energy services sector.
Nevertheless, EDF has to try to avoid certain threats such as its lack of presence in other energies sectors other than electricity, especially concerning natural gas which is one of the most widely used energies in the world. The group also suffers from a lower profitability than that of its competitors because of its high level of debt and low equity.
The different activities carried out by EDF:
The French group EDF carries out, just like you have seen before, several different activities that allows it to intervene in all the levels of the chain of production and distribution of electricity, whether concerning the putting in service of power plant or the sale of electricity to particulars. Here are all the details about the different activities carried out by this company.
The activities of engineering, production and electricity trading: EDF is involved in the whole engineering process of building electrical power plants, operating and maintaining electricity generating instruments and even on the dismantling of old and dilapidated structures. The group also carries out energy trading activities. It can thus buy and sell electricity in the world according to its level of production and its needs for resales.
Electricity transmission services: EDF counts with two types of electricity distribution networks. One of its transmission network is also called « HTB network » because it conducts very high levels of voltage ranging from 63 KV to 400 KV, regarding the European and French networks. All the major production power plants are connected to this network, as are the largest consumers and distributors of electricity. Thus, EDF is directly in charge of controlling and managing the balance between supply and demand and guaranteeing the connection of these networks to neighboring systems. The high voltage electricity transmission network also called HT and the very high voltage network called THT combined accumulate more than 100 000 km of electricity lines. This is an independent entity but remains attached to the EDF’s group, RTE, which is in charge of the management of the French electricity network in accordance with the specifications issued by the Public Transmission Network. The company RTE is a subsidiary completely owned by EDF but has management independence as required by the current European regulations.
Electricity distribution services: EDF is also an electricity distributor and supplier since it operates a lower voltage network than its transmission network called “HTA network” with a voltage between 10 and 30 Kv. On this network, we can find some small production plants which are connected to it but whose power does not exceed a few tens of MW. Of course, almost all consumers are also connected to this network. On This network, EDF is not responsible for the regulation between supply and demand it is only responsible of guaranteeing the continuity of the supply of electricity and its quality. This network represents more than 1 200 000 km of electric lines in France which belong to the communities. It is therefore them who are in charge of the distribution, through a company in charge of the distribution of electricity locally or SICAE but the distribution can also be entrusted to EDF’s Gaz de France Distribution, which is a common service of EDF and Gaz de France (Engie). Since 2008 and after the legal separation of its competitive activities and its distribution network operation activities, these activities have been relied to the subsidiaries. It is therefore the subsidiaries ERDF for EDF and GRDF for Engie who are in charge of these activities since then.