CEPUCentral Puerto S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.7×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CEPU?
Central Puerto S.A. earns 9.1% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.13 points above what the capital costs: growth creates value
- Operating margin
- 27%
Operating margin · Utilities - Regulated Electric median 22% · fiscal year to FY2024
- Cash conversion
- 1.66×
Cash conversion · 0.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | 78% |
| FY2020 | 73% |
| FY2021 | 45% |
| FY2022 | 61% |
| FY2023 | 108% |
| FY2024 | 27% |
Details›
- Gross marginfiscal year to FY2024
- 40%
- Operating marginfiscal year to FY2024
- 27%
- Net marginfiscal year to FY2024
- 6.7%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $738.2B
- Free cash flow, trailing twelve months
- $115.7B
- Net income, trailing twelve months
- $49.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Utilities, Regulated Electric
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