We Think REN - Redes Energéticas Nacionais SGPS' (ELI:RENE) Healthy Earnings Might Be Conservative
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Portuguese (PSI) Utilities Sector Analysis
UpdatedNov 26, 2024
DataAggregated Company Financials
Companies4
- 7D1.8%
- 3M-12.1%
- 1Y-21.3%
- YTD-27.4%
Over the last 7 days, the Utilities industry has dropped 1.7%, driven by EDP Renováveis declining 3.8%. Overall the industry is down 21% in 12 months. Earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the Portuguese Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Nov 2024 | €29.2b | €18.2b | €1.3b | 85.5x | 22.5x | 1.6x |
| Thu, 24 Oct 2024 | €32.0b | €18.5b | €1.9b | 21.6x | 17.3x | 1.7x |
| Sat, 21 Sep 2024 | €35.2b | €18.4b | €1.9b | 24.4x | 18.9x | 1.9x |
| Mon, 19 Aug 2024 | €33.0b | €18.4b | €1.9b | 22.6x | 17.7x | 1.8x |
| Wed, 17 Jul 2024 | €31.9b | €18.7b | €1.5b | 30x | 21.8x | 1.7x |
| Fri, 14 Jun 2024 | €33.0b | €18.7b | €1.5b | 30.5x | 22.5x | 1.8x |
| Sun, 12 May 2024 | €33.7b | €19.5b | €1.4b | 32.6x | 23.7x | 1.7x |
| Tue, 09 Apr 2024 | €29.5b | €19.5b | €1.4b | 27.7x | 20.7x | 1.5x |
| Thu, 07 Mar 2024 | €32.6b | €20.3b | €1.5b | 30x | 21x | 1.6x |
| Sat, 03 Feb 2024 | €34.6b | €20.4b | €1.7b | 25.1x | 20.7x | 1.7x |
| Mon, 01 Jan 2024 | €40.6b | €20.4b | €1.7b | 30.6x | 24.3x | 2x |
| Wed, 29 Nov 2023 | €37.3b | €20.4b | €1.7b | 27.3x | 22.2x | 1.8x |
| Fri, 27 Oct 2023 | €33.6b | €22.0b | €1.4b | 27.4x | 24.3x | 1.5x |
| Sun, 24 Sep 2023 | €36.3b | €22.0b | €1.4b | 29.8x | 26.2x | 1.6x |
| Tue, 22 Aug 2023 | €36.6b | €22.0b | €1.4b | 30.4x | 26.4x | 1.7x |
| Thu, 20 Jul 2023 | €38.0b | €23.0b | €1.8b | 22.8x | 21x | 1.7x |
| Sat, 17 Jun 2023 | €41.6b | €23.0b | €1.8b | 25.1x | 23x | 1.8x |
| Mon, 15 May 2023 | €43.4b | €23.0b | €1.8b | 26.2x | 24x | 1.9x |
| Wed, 12 Apr 2023 | €43.8b | €23.8b | €1.4b | 31.9x | 30.8x | 1.8x |
| Fri, 10 Mar 2023 | €41.8b | €23.9b | €1.4b | 30.4x | 29.3x | 1.8x |
| Sun, 05 Feb 2023 | €40.4b | €24.0b | €1.7b | 24.2x | 23.5x | 1.7x |
| Tue, 03 Jan 2023 | €41.4b | €24.0b | €1.7b | 24.8x | 24.1x | 1.7x |
| Thu, 01 Dec 2022 | €41.7b | €24.0b | €1.7b | 24.9x | 24.3x | 1.7x |
| Sat, 29 Oct 2022 | €40.2b | €22.0b | €1.5b | 27x | 26.7x | 1.8x |
| Mon, 26 Sep 2022 | €43.0b | €22.0b | €1.5b | 28.9x | 28.4x | 2x |
| Wed, 24 Aug 2022 | €48.3b | €22.0b | €1.5b | 32.4x | 32x | 2.2x |
| Fri, 22 Jul 2022 | €43.2b | €20.1b | €1.2b | 39.1x | 36.3x | 2.2x |
| Sun, 19 Jun 2022 | €41.2b | €20.1b | €1.2b | 37.2x | 34.6x | 2.1x |
| Tue, 17 May 2022 | €40.0b | €20.0b | €1.2b | 36.3x | 33.6x | 2x |
| Thu, 14 Apr 2022 | €43.0b | €17.5b | €1.4b | 30.6x | 30.3x | 2.5x |
| Sat, 12 Mar 2022 | €41.4b | €17.4b | €1.4b | 29.6x | 29.1x | 2.4x |
| Mon, 07 Feb 2022 | €37.1b | €15.7b | €1.4b | 32.4x | 26.7x | 2.4x |
| Wed, 05 Jan 2022 | €42.4b | €15.7b | €1.4b | 37.6x | 30.5x | 2.7x |
| Fri, 03 Dec 2021 | €42.0b | €15.7b | €1.4b | 37.6x | 30.2x | 2.7x |
Price to Earnings Ratio
30.2x
Current Industry PE
- Investors are pessimistic on the Portuguese Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 22.2x which is lower than its 3-year average PE of 25.5x.
- The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have declined 2.1% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Portuguese Utilities sector?
| PT Market | 0.71% | |
| Utilities | 1.79% | |
| Electric Utilities | 2.15% | |
| Renewable Energy | 1.49% | |
| Other Utilities | 1.04% | |
| Gas Utilities | 0% | |
| Water Utilities | 0% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 38.3x.
- Analysts are expecting annual earnings growth of 34.5%, which is higher than its past year's earnings decline of 93.0% per year.
- Investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 14.4x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 34% over the next 5 years.
- This is better than its past earnings decline of 93% per year.
- In contrast, the Other Utilities industry is expected to see its earnings decline by 4.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| EDPR EDP Renováveis | €10.99 | 1.9% +€208.0m | -31.7% | PE154.4x | |
| EDP EDP | €3.44 | 0.8% +€108.3m | -21.2% | PE13.2x | |
| RENE REN - Redes Energéticas Nacionais SGPS | €2.45 | 1.4% +€23.2m | 0.2% | PE11.8x | |
| GVOLT Greenvolt - Energias Renováveis | €8.22 | 0.2% +€3.3m | 19.0% | PE2397.8x |