CEPUCentral Puerto S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 14% = 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 12% 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% · 3.4 points above what the capital costs: growth creates value
- Operating margin
- 34%
Operating margin · Utilities - Regulated Electric median 22% · fiscal year to FY2025
- Cash conversion
- 1.43×
Cash conversion · 1.66× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.05%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 73% |
| FY2021 | 45% |
| FY2022 | 61% |
| FY2023 | 108% |
| FY2024 | 27% |
| FY2025 | 34% |
Details›
- Gross marginfiscal year to FY2025
- 36%
- Operating marginfiscal year to FY2025
- 34%
- Net marginfiscal year to FY2025
- 32%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $1.10T
- Free cash flow, trailing twelve months
- $115.8B
- Net income, trailing twelve months
- $346.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
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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