BME: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

Fundamentals

Solid track record established dividend payer.


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


Market Performance


7 Day Return

-1.9%

BME:REE

-0.6%

ES Electric Utilities

-0.003%

ES Market


1 Year Return

-3.7%

BME:REE

17.1%

ES Electric Utilities

-8.3%

ES Market

REE underperformed the Electric Utilities industry which returned 17.1% over the past year.

REE outperformed the Market in Spain which returned -8.3% over the past year.


Share holder returns

REEIndustryMarket
7 Day-1.9%-0.6%-0.003%
30 Day0.03%0.9%-6.0%
90 Day-11.5%3.9%-4.7%
1 Year0.4%-3.7%21.7%17.1%-5.3%-8.3%
3 Year0.8%-10.5%56.1%35.5%12.7%2.3%
5 Year31.3%8.9%41.0%5.1%-0.9%-19.5%

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

Valuation

Is Red Eléctrica Corporación undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Red Eléctrica Corporación's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Red Eléctrica Corporación's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Red Eléctrica Corporación is overvalued based on earnings compared to the Europe Electric Utilities industry average.

Red Eléctrica Corporación is good value based on earnings compared to the Spain market.


Price Based on Expected Growth

Red Eléctrica Corporación earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Red Eléctrica Corporación is overvalued based on assets compared to the Europe Electric Utilities industry average.


Next Steps

Future Growth

How is Red Eléctrica Corporación expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Red Eléctrica Corporación's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Red Eléctrica Corporación's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Red Eléctrica Corporación's revenue growth is positive but not above the Spain market average.

Red Eléctrica Corporación's earnings are expected to decrease over the next 1-3 years, this is below the Spain market average.

Red Eléctrica Corporación's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Red Eléctrica Corporación is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Red Eléctrica Corporación's year on year earnings growth rate has been positive over the past 5 years.

Red Eléctrica Corporación's 1-year earnings growth exceeds its 5-year average (3.4% vs 1.9%)

Red Eléctrica Corporación's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (3.4% vs -8.2%).


Return on Equity

Whilst Red Eléctrica Corporación has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Red Eléctrica Corporación used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Red Eléctrica Corporación has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Red Eléctrica Corporación's financial position?


Financial Position Analysis

Red Eléctrica Corporación's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Red Eléctrica Corporación's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Red Eléctrica Corporación's level of debt (163.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (220.2% vs 163.5% today).

Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Red Eléctrica Corporación's pays a higher dividend yield than the bottom 25% of dividend payers in Spain (2.31%).

Red Eléctrica Corporación's dividend is below the markets top 25% of dividend payers in Spain (5.65%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of Red Eléctrica Corporación's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Roberto García Merino 0

0.3yrs

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 ...


Management Age and Tenure

0.3yrs

Average Tenure

The average tenure for the Red Eléctrica Corporación management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

62yo

Average Age

The average tenure for the Red Eléctrica Corporación board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy€71,94021 Nov 18
Juan Francisco Lasala Bernad
EntityIndividual
Shares3,714
Max Price€19.37

Ownership Breakdown


Management Team

  • Ralph de Diego Barber (68yo)

    General Counsel & Secretary of the Board of Directors

    • Tenure: 0.0yrs
  • Fernando Frías Montejo (54yo)

    Deputy Secretary of the Board of Directors

    • Tenure: 14.3yrs
  • Antonio Calvo Roy

    Manager of Institutional Relations & Sustainability Area

    • Tenure: 0.0yrs
  • Roberto García Merino

    CEO & Director

    • Tenure: 0.3yrs
  • María Teresa Quirós Álvarez

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Irene Gómez Barrio

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Concepción Ordiz Fuentes

    Deputy Secretary

    • Tenure: 0.3yrs
  • María Resurrección Barrio Martín

    Manager of Human Resources Area

    • Tenure: 0.2yrs
  • Silvia Bruno de Cruz

    Chief Innovation & Technology Officer

    • Tenure: 0.0yrs

Board Members

  • Alberto Francisco Carbajo Josa (70yo)

    External Independent Director

    • Tenure: 2.4yrs
    • Compensation: €175.00k
  • Antonio Gómez Ciria (62yo)

    External Independent Director

    • Tenure: 5.3yrs
    • Compensation: €190.00k
  • María José García Beato (54yo)

    External Independent Director

    • Tenure: 6.8yrs
    • Compensation: €175.00k
  • Carmen Gómez de Barreda Tous de Monsalve (51yo)

    Lead Independent Director

    • Tenure: 6.3yrs
    • Compensation: €192.00k
  • Socorro Fernández Larrea

    External Independent Director

    • Tenure: 5.3yrs
    • Compensation: €175.00k
  • Roberto García Merino

    CEO & Director

    • Tenure: 0.3yrs
  • Arsenio Fernández de Mesa Y Día del Río (64yo)

    External Independent Director

    • Tenure: 2.6yrs
    • Compensation: €175.00k
  • Jordi Sevilla Segura

    Chairman

    • Tenure: 1.1yrs
    • Compensation: €228.00k
  • Antonio Gómez Expósito

    External Nominee Director

    • Tenure: 0.9yrs
    • Compensation: €43.00k
  • María Teresa Costa Campi

    External Nominee Director

    • Tenure: 0.9yrs
    • Compensation: €43.00k

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: BME
  • Founded: 1985
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: €9.417b
  • 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
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 tran ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:43
End of Day Share Price2019/08/23 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.