WBAG:REE

Stock Analysis Report

Red Eléctrica Corporación

Executive Summary

Red Eléctrica Corporación, S.A. transmits electricity; operates and manages transmission network for the electricity system; and manages electricity transmission grid in Spain and internationally.


Snowflake Analysis

6 star dividend payer with proven track record.


Similar Companies

Share Price & News

How has Red Eléctrica Corporación's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.2%

REE

3.6%

AT Electric Utilities

-0.4%

AT Market


1 Year Return

3.8%

REE

32.8%

AT Electric Utilities

3.9%

AT Market

Return vs Industry: REE underperformed the Austrian Electric Utilities industry which returned 32.8% over the past year.

Return vs Market: REE matched the Austrian Market which returned 3.9% over the past year.


Shareholder returns

REEIndustryMarket
7 Day5.2%3.6%-0.4%
30 Day9.2%9.8%-0.2%
90 Day13.9%20.6%-0.7%
1 Year8.2%3.8%38.0%32.8%7.7%3.9%
3 Yearn/a85.9%61.9%26.0%14.7%
5 Yearn/a69.3%30.9%52.7%31.5%

Price Volatility Vs. Market

How volatile is Red Eléctrica Corporación's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Red Eléctrica Corporación undervalued compared to its fair value and its price relative to the market?

14.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REE (€19.58) is trading above our estimate of fair value (€17.07)

Significantly Below Fair Value: REE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: REE is poor value based on its PE Ratio (14.8x) compared to the Electric Utilities industry average (14.4x).

PE vs Market: REE is poor value based on its PE Ratio (14.8x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: REE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: REE is overvalued based on its PB Ratio (3.1x) compared to the XE Electric Utilities industry average (1x).


Next Steps

Future Growth

How is Red Eléctrica Corporación forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REE's earnings are forecast to decline over the next 3 years (-3% per year).

Earnings vs Market: REE's earnings are forecast to decline over the next 3 years (-3% per year).

High Growth Earnings: REE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: REE's revenue (0.3% per year) is forecast to grow slower than the Austrian market (2.7% per year).

High Growth Revenue: REE's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REE's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Red Eléctrica Corporación performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REE has high quality earnings.

Growing Profit Margin: REE's current net profit margins (35.5%) are higher than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: REE's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: REE's earnings growth over the past year (2.6%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: REE earnings growth over the past year (2.6%) underperformed the Electric Utilities industry 8.6%.


Return on Equity

High ROE: Whilst REE's Return on Equity (20.69%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Red Eléctrica Corporación's financial position?


Financial Position Analysis

Short Term Liabilities: REE's short term assets (€2.0B) do not cover its short term liabilities (€2.0B).

Long Term Liabilities: REE's short term assets (€2.0B) do not cover its long term liabilities (€6.0B).


Debt to Equity History and Analysis

Debt Level: REE's debt to equity ratio (162.8%) is considered high.

Reducing Debt: REE's debt to equity ratio has reduced from 217.1% to 162.8% over the past 5 years.

Debt Coverage: REE's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: REE's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

Inventory Level: REE has a high level of physical assets or inventory.

Debt Coverage by Assets: REE's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Red Eléctrica Corporación's current dividend yield, its reliability and sustainability?

5.03%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.6%markettop25%4.5%industryaverage3.5%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: REE's dividend (5.03%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: REE's dividend (5.03%) is in the top 25% of dividend payers in the Austrian market (4.54%)


Stability and Growth of Payments

Stable Dividend: REE's dividends per share have been stable in the past 10 years.

Growing Dividend: REE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.4%), REE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REE's dividends in 3 years are forecast to be covered by earnings (82.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Roberto García Merino 0

0.8yrs

Tenure

0

Mr. Roberto García Merino has been Chief Executive Officer and Director of Red Eléctrica Corporación, S.A. since May 2019. Mr. Merino served as Executive Director of Telecommunications and International at ...


Leadership Team

NamePositionTenureCompensationOwnership
Roberto García Merino
CEO & Director0.8yrsno data0.00093% 98.2k
María Teresa Quirós Álvarez
Chief Financial Officer0yrsno datano data
Silvia Bruno de Cruz
Chief Innovation & Technology Officer0.5yrsno datano data
Irene Gómez Barrio
Head of Investor Relations0yrsno datano data
Rafael García de Diego Barber
General Counsel & Secretary of the Board of Directors0yrsno datano data
María Resurrección Barrio Martín
Manager of Human Resources Area0.7yrsno datano data
Antonio Calvo Roy
Manager of Institutional Relations & Sustainability Area0yrsno datano data
Fernando Frías Montejo
Deputy Secretary of the Board of Directors14.8yrsno datano data
Concepción Ordiz Fuentes
Deputy Secretary0.8yrsno datano data

0.8yrs

Average Tenure

Experienced Management: REE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Roberto García Merino
CEO & Director0.8yrsno data0.00093% 98.2k
Alberto Francisco Carbajo Josa
External Independent Director2.9yrs€175.00kno data
Antonio Gómez Ciria
External Independent Director5.8yrs€190.00kno data
María José García Beato
External Independent Director7.3yrs€175.00kno data
Carmen Gómez de Barreda Tous de Monsalve
Lead Independent Director6.8yrs€192.00kno data
Socorro Fernández Larrea
External Independent Director5.8yrs€175.00kno data
Arsenio Fernández de Mesa Y Día del Río
External Independent Director3.1yrs€175.00kno data
Antonio Gómez Expósito
External Nominee Director1.4yrs€43.00kno data
María Teresa Costa Campi
External Nominee Director1.4yrs€43.00kno data
José Juan Ruiz Gómez
External Independent Director0.9yrsno datano data

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: REE's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Red Eléctrica Corporación, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Eléctrica Corporación, S.A.
  • Ticker: REE
  • Exchange: WBAG
  • Founded: 1985
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €10.556b
  • Shares outstanding: 539.79m
  • Website: https://www.ree.es

Number of Employees


Location

  • Red Eléctrica Corporación, S.A.
  • Paseo del Conde de los Gaitanes, 177
  • Alcobendas
  • Madrid
  • 28109
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDEI.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJul 1999
RE21DB (Deutsche Boerse AG)YesBearer SharesDEEURJul 1999
REEBME (Bolsas y Mercados Espanoles)YesBearer SharesESEURJul 1999
0RI5LSE (London Stock Exchange)YesBearer SharesGBEURJul 1999
REEEBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJul 1999
REEWBAG (Wiener Boerse AG)YesBearer SharesATEURJul 1999
REE NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNJul 1999
RE21ETLX (Eurotlx)YesBearer SharesITEURJul 1999
RDEI.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Red Eléctrica Corporación, S.A. transmits electricity; operates and manages transmission network for the electricity system; and manages electricity transmission grid in Spain and internationally. Its transmission network comprises approximately 43,800 kilometers; and has 86,654 MVA of transformer capacity. The company also provides consultancy, engineering, and construction services; telecommunications infrastructure services to telecommunications operators comprising leasing of dark fiber; and line and sub-station maintenance services. Red Eléctrica Corporación, S.A. was founded in 1985 and is based in Alcobendas, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:53
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.