BME:GRE

Stock Analysis Report

Grenergy Renovables

Executive Summary

Grenergy Renovables, S.A., together with its subsidiaries, operates as an independent power producer.

Rewards

Trading at 94.2% below its fair value

Earnings are forecast to grow 39.8% per year

Earnings have grown 53.8% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential and good value.

Share Price & News

How has Grenergy Renovables's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.9%

GRE

-0.7%

ES Renewable Energy

0.2%

ES Market


1 Year Return

322.1%

GRE

24.2%

ES Renewable Energy

6.5%

ES Market

Return vs Industry: GRE exceeded the Spanish Renewable Energy industry which returned 24.2% over the past year.

Return vs Market: GRE exceeded the Spanish Market which returned 6.5% over the past year.


Shareholder returns

GREIndustryMarket
7 Day13.9%-0.7%0.2%
30 Day30.2%4.7%0.2%
90 Day127.0%14.3%3.4%
1 Year322.1%322.1%27.8%24.2%10.4%6.5%
3 Year1020.0%1020.0%88.0%73.7%14.5%3.7%
5 Yearn/a78.1%59.4%12.7%-6.4%

Price Volatility Vs. Market

How volatile is Grenergy Renovables's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grenergy Renovables undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRE (€16.8) is trading below our estimate of fair value (€288.21)

Significantly Below Fair Value: GRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GRE is good value based on its PE Ratio (21.7x) compared to the Renewable Energy industry average (35.2x).

PE vs Market: GRE is poor value based on its PE Ratio (21.7x) compared to the Spanish market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GRE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GRE is overvalued based on its PB Ratio (10.2x) compared to the ES Renewable Energy industry average (6.8x).


Next Steps

Future Growth

How is Grenergy Renovables forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRE's forecast earnings growth (39.8% per year) is above the savings rate (0.4%).

Earnings vs Market: GRE's earnings (39.8% per year) are forecast to grow faster than the Spanish market (10.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRE's revenue (37.6% per year) is forecast to grow faster than the Spanish market (3.5% per year).

High Growth Revenue: GRE's revenue (37.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRE's Return on Equity is forecast to be very high in 3 years time (47%).


Next Steps

Past Performance

How has Grenergy Renovables performed over the past 5 years?

53.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRE has a high level of non-cash earnings.

Growing Profit Margin: GRE's current net profit margins (27%) are higher than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: GRE's earnings have grown significantly by 53.8% per year over the past 5 years.

Accelerating Growth: GRE's earnings growth over the past year (113.5%) exceeds its 5-year average (53.8% per year).

Earnings vs Industry: GRE earnings growth over the past year (113.5%) underperformed the Renewable Energy industry 113.5%.


Return on Equity

High ROE: GRE's Return on Equity (48.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grenergy Renovables's financial position?


Financial Position Analysis

Short Term Liabilities: GRE's short term assets (€62.1M) exceed its short term liabilities (€47.5M).

Long Term Liabilities: GRE's short term assets (€62.1M) exceed its long term liabilities (€24.2M).


Debt to Equity History and Analysis

Debt Level: GRE's debt to equity ratio (99.4%) is considered high.

Reducing Debt: Insufficient data to determine if GRE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GRE's debt is well covered by operating cash flow (69.5%).

Interest Coverage: GRE's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: GRE's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Grenergy Renovables's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GRE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GRE's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

What is the CEO of Grenergy Renovables's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

David Ruiz de Andrés 0

0yrs

Tenure

0

Mr. David Ruiz de Andrés founded Grenergy Renovables, S.A. in 2007 and has been its Chief Executive Officer since then. Mr. Ruiz de Andrés has been President of Grenergy Renovables, S.A. since July 19, 201 ...


Board Age and Tenure

3.6yrs

Average Tenure

Experienced Board: GRE's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 4.7%.


Management Team

  • David Ruiz de Andrés

    CEO, President & Director

    • Tenure: 0yrs
  • Antonio Jiménez Alarcón

    CFO & Director

    • Tenure: 0yrs
  • Hugo Galindo Pérez

    MD & Director

    • Tenure: 3.8yrs

Board Members

  • David Ruiz de Andrés

    CEO, President & Director

    • Tenure: 0yrs
  • Antonio Jiménez Alarcón

    CFO & Director

    • Tenure: 0yrs
  • Hugo Galindo Pérez

    MD & Director

    • Tenure: 3.8yrs
  • Florentino Vivancos Gasset

    Director

    • Tenure: 3.9yrs
  • Ana Cristina Peralta Moreno (58yo)

    Independent Director

    • Tenure: 3.4yrs
  • Nicolás Bergareche Mendoza

    Independent Director

    • Tenure: 3.4yrs

Company Information

Grenergy Renovables, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grenergy Renovables, S.A.
  • Ticker: GRE
  • Exchange: BME
  • Founded: 2007
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: €386.396m
  • Shares outstanding: 23.56m
  • Website: https://www.grenergy.eu

Number of Employees


Location

  • Grenergy Renovables, S.A.
  • Rafael Botí, 2
  • Madrid
  • Madrid
  • 28023
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GREBME (Bolsas y Mercados Espanoles)YesShare CapitalESEURJul 2015
5GRBST (Boerse-Stuttgart)YesShare CapitalDEEURJul 2015

Biography

Grenergy Renovables, S.A., together with its subsidiaries, operates as an independent power producer. The company designs, develops, executes, and operates renewable energy plants, including solar and wind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 22:03
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
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.