StockVS

Central Puerto S.A. (CEPU) Stock Analysis

Utilities

Central Puerto S.A.

$14.46

+$0.55 (+3.95%)

Last Updated: May 26, 2026

Price History

Analysis

Company Overview

Central Puerto S.A. operates primarily within the Utilities sector, specifically focusing on the Regulated Electric industry, where it engages in electric power generation activities across Argentina. The company's operational scope is diversified into four distinct segments: Electric Power Generation from Conventional Sources, Electric Power Generation from Renewable Sources, Natural Gas Transport and Distribution, and Forest Activity. In terms of market scale, the entity holds a market capitalization of $2.41B and reports annual revenue of $1.10T, though specific employee count data is not currently available in the provided dataset. These financial figures indicate that the company maintains a substantial presence within the regulated utility market, with revenue figures suggesting a significant operational footprint despite the relatively modest market cap relative to the reported revenue magnitude.

Financial Health

The company demonstrates robust operational profitability, reporting a revenue of $1.10T, a net income of $346.35B, and an EBITDA of $462.23B for the trailing twelve months. The substantial gap between the $1.10T in revenue and the $346.35B in net income reveals a cost structure characterized by high operating leverage and significant non-cash adjustments or accounting treatments inherent to the utility sector's regulated nature. Financial flexibility is supported by a free cash flow of $13.80B, which indicates the company generates sufficient cash from operations to cover capital expenditures and potentially fund internal projects or debt servicing without relying solely on external financing. The company's profitability is further evidenced by a gross margin of 35.9%, an operating margin of 22.4%, and a profit margin of 31.6%, suggesting that the business model effectively converts a large portion of sales into earnings after covering all costs. Regarding liquidity and leverage, the firm holds $337.86B in cash against a total debt load of $493.03B, resulting in a debt-to-equity ratio of 18.85 which implies a highly leveraged balance sheet typical for capital-intensive utility assets. Short-term liquidity appears manageable given a current ratio of 1.77, indicating that current assets are more than double current liabilities, providing a buffer against immediate obligations. Return metrics show a return on equity of 13.9% and a return on assets of 5.2%, revealing that the company generates higher returns on shareholder capital compared to its total asset base, reflecting the leverage effect on equity holders.

Valuation Assessment

Valuation multiples for Central Puerto S.A. show a trailing P/E ratio of 11.65 and a forward P/E of 9.18, where the difference between these figures implies an expectation of earnings contraction or a significant shift in how the market prices future earnings relative to current performance. The price-to-book ratio stands at 12.28, which indicates that the market is pricing the company at a substantial premium over its book value, suggesting that the intangible assets, regulatory concessions, or future cash flow potential are valued highly above tangible net worth. Alternative valuation metrics include a price-to-sales ratio of 0.00 and an EV/EBITDA of 0.53; the price-to-sales figure of 0.00 suggests a potential data anomaly or specific accounting classification in the provided facts that renders traditional sales-based valuation inapplicable, while the EV/EBITDA suggests a very low entry multiple relative to earnings before interest, taxes, depreciation, and amortization. The stock's trading range over the past year spans a high of $18.50 and a low of $7.43, providing a context for where the current price sits relative to this historical volatility. The beta value is recorded as -0.03, which is an anomalous figure that technically suggests a negative correlation to the broader market, implying that the stock price moves inversely to the general market index rather than with it.

Growth & Income

Growth dynamics are defined by a revenue growth rate of 11.3% year-over-year, while earnings growth data is not available in the provided records. The absence of reported earnings growth figures prevents a direct comparison of earnings acceleration against revenue expansion, though the revenue growth indicates a positive trajectory in top-line sales for the utility business. Regarding income distribution, the company reports a dividend yield of N/A and a payout ratio of 0.0%, indicating that the entity does not currently distribute cash to shareholders. Since the payout ratio is zero, the company retains all of its earnings, effectively reinvesting them into growth initiatives, debt reduction, or other corporate purposes rather than paying dividends. This non-dividend profile aligns with the utility industry's typical focus on capital allocation for infrastructure maintenance and expansion rather than immediate shareholder payouts. The overall growth and income profile is characterized by strong revenue expansion coupled with a lack of current dividend income, positioning the asset primarily as a growth-oriented equity within the regulated electric utility space.

Peer Comparison

Central Puerto S.A. (CEPU) operates in the Utilities - Regulated Electric industry. Here is how it compares to its closest peers by market capitalization:

Company Ticker Market Cap P/E Ratio
Central Puerto S.A. CEPU $2.17B 6.8
NextEra Energy, Inc. NEE $184.68B 22.5
The Southern Company SO $106.07B 24.1
Duke Energy Corporation DUK $97.43B 19.2

The Utilities - Regulated Electric industry average P/E ratio is 19.8x. Central Puerto S.A. trades at a P/E of 6.8.

This analysis is AI-generated for informational purposes only and should not be considered financial advice. Data may be delayed or inaccurate. Always do your own research and consult a qualified financial advisor before making investment decisions.

About Central Puerto S.A.

Central Puerto S.A. engages in the electric power generation activities in Argentina. It operates in three segments: Electric Power Generation From Conventional Sources, Electric Power Generation From Renewable Sources and Forest Activity, and Management and Operations of Thermal Plants. The company's power generation assets include combined cycle, gas and steam turbine, co-generation, hydroelectric, wind turbines, and solar panels. It also engages in the natural gas transport and distribution; forestry; and mining businesses. The company was incorporated in 1992 and is based in Buenos Aires, Argentina.

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Key Statistics

Market Cap
$2.17B
P/E Ratio
6.76
52-Week High
$18.50
52-Week Low
$7.43
Avg Volume
382.87K

Data provided by Yahoo Finance via yfinance. Updated daily.

Company Info

Exchange
NYSE
Country
Argentina