Red Eléctrica Corporación, S.A. transmits electricity and operates and manages transmission network for the electricity system in Spain and internationally. More Details
Established dividend payer with mediocre balance sheet.
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.
7 Day Return
ES Electric Utilities
1 Year Return
ES Electric Utilities
Return vs Industry: REE underperformed the Spanish Electric Utilities industry which returned 11.2% over the past year.
Return vs Market: REE exceeded the Spanish Market which returned -22.9% over the past year.
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
1 week ago | Simply Wall StIs Red Eléctrica Corporación (BME:REE) A Risky Investment?
3 weeks ago | Simply Wall StRed Eléctrica Corporación's (BME:REE) Shareholders Are Down 17% On Their Shares
1 month ago | Simply Wall StWhat Kind Of Investors Own Most Of Red Eléctrica Corporación, S.A. (BME:REE)?
Is Red Eléctrica Corporación undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: REE (€16.07) is trading above our estimate of fair value (€14.08)
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 (12.6x) compared to the XE Electric Utilities industry average (11.9x).
PE vs Market: REE is good value based on its PE Ratio (12.6x) compared to the Spanish market (18.8x).
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 (2.6x) compared to the ES Electric Utilities industry average (1.9x).
How is Red Eléctrica Corporación forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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 (-0.7% per year).
Earnings vs Market: REE's earnings are forecast to decline over the next 3 years (-0.7% per year).
High Growth Earnings: REE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: REE's revenue (0.05% per year) is forecast to grow slower than the Spanish market (6.5% per year).
High Growth Revenue: REE's revenue (0.05% 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 (18%).
How has Red Eléctrica Corporación performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REE has high quality earnings.
Growing Profit Margin: REE's current net profit margins (33.5%) are lower than last year (35.4%).
Past Earnings Growth Analysis
Earnings Trend: REE's earnings have grown by 1.6% per year over the past 5 years.
Accelerating Growth: REE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: REE had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Electric Utilities industry average (-5.4%).
Return on Equity
High ROE: Whilst REE's Return on Equity (20.24%) is high, this metric is skewed due to their high level of debt.
How is Red Eléctrica Corporación's financial position?
Financial Position Analysis
Short Term Liabilities: REE's short term assets (€2.0B) exceed its short term liabilities (€1.6B).
Long Term Liabilities: REE's short term assets (€2.0B) do not cover its long term liabilities (€8.0B).
Debt to Equity History and Analysis
Debt Level: REE's debt to equity ratio (202.3%) is considered high.
Reducing Debt: REE's debt to equity ratio has reduced from 213.2% to 202.3% over the past 5 years.
Debt Coverage: REE's debt is not well covered by operating cash flow (15.8%).
Interest Coverage: REE's interest payments on its debt are well covered by EBIT (7.4x coverage).
What is Red Eléctrica Corporación current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REE's dividend (6.55%) is higher than the bottom 25% of dividend payers in the Spanish market (2.39%).
High Dividend: REE's dividend (6.55%) is low compared to the top 25% of dividend payers in the Spanish market (6.86%).
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 (61.1%), 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 (78.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Roberto García Merino
Mr. Roberto García Merino has been Chief Executive Officer and Director of Red Eléctrica Corporación, S.A. since May 27, 2019. Mr. Merino served as Executive Director of Telecommunications and Internationa ...
CEO Compensation Analysis
Compensation vs Market: Roberto's total compensation ($USD1.13M) is below average for companies of similar size in the Spanish market ($USD3.49M).
Compensation vs Earnings: Insufficient data to compare Roberto's compensation with company performance.
|CEO & Director||1.42yrs||€951.17k||0.00093% |
|Chief Financial Officer||no data||no data||no data|
|Chief Innovation & Technology Officer||1.17yrs||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|General Counsel & Non-Director Secretary||0.42yr||no data||no data|
|Manager of Human Resources Area||1.33yrs||no data||no data|
|Manager of Institutional Relations & Sustainability Area||no data||no data||no data|
|Deputy Secretary of the Board of Directors||15.5yrs||no data||no data|
Experienced Management: REE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|CEO & Director||1.42yrs||€951.17k||0.00093% |
|External Independent Director||3.58yrs||€175.00k||no data|
|External Independent Director||6.42yrs||€190.00k||no data|
|External Independent Director||7.92yrs||€175.00k||0% |
|Lead Independent Director||7.42yrs||€205.00k||no data|
|Proprietary Director||3yrs||€175.00k||no data|
|External Independent Director||6.42yrs||€187.00k||no data|
|External Independent Director||3.75yrs||€175.00k||no data|
|Proprietary Director||2.08yrs||€175.00k||no data|
|Proprietary Director||2.08yrs||€43.00k||no data|
|External Independent Director||1.58yrs||€137.00k||no data|
|Chairwoman||0.67yr||no data||no data|
Experienced Board: REE's board of directors are considered experienced (3.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Red Eléctrica Corporación, S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Red Eléctrica Corporación, S.A.
- Ticker: REE
- Exchange: BME
- Founded: 1985
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: €8.655b
- Shares outstanding: 538.72m
- Website: https://www.ree.es
Number of Employees
- Red Eléctrica Corporación, S.A.
- Paseo del Conde de los Gaitanes, 177
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RDEI.F||OTCPK (Pink Sheets LLC)||Yes||Bearer Shares||US||USD||Jul 1999|
|RE21||DB (Deutsche Boerse AG)||Yes||Bearer Shares||DE||EUR||Jul 1999|
|REE||BME (Bolsas y Mercados Espanoles)||Yes||Bearer Shares||ES||EUR||Jul 1999|
|0RI5||LSE (London Stock Exchange)||Yes||Bearer Shares||GB||EUR||Jul 1999|
|REEE||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Bearer Shares||GB||EUR||Jul 1999|
|REE||WBAG (Wiener Boerse AG)||Yes||Bearer Shares||AT||EUR||Jul 1999|
|REE N||BMV (Bolsa Mexicana de Valores)||Yes||Bearer Shares||MX||MXN||Jul 1999|
|RE21||ETLX (Eurotlx)||Yes||Bearer Shares||IT||EUR||Jul 1999|
|RDEI.Y||OTCPK (Pink Sheets LLC)||UNSPONSORED ADR||US||USD||Oct 2008|
Red Eléctrica Corporación, S.A. transmits electricity and operates and manages transmission network for the electricity system in Spain and internationally. Its transmission network comprises approximately ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/23 20:47|
|End of Day Share Price||2020/10/23 00:00|
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.