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REE

Red Eléctrica CorporaciónBME:REE Stock Report

Market Cap

€9.9b

7D

1.8%

1Y

7.4%

Updated

26 Nov, 2021

Data

Company Financials +
REE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends5/6

REE Stock Overview

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

Red Eléctrica Corporación Competitors

National Grid

LSE:NG.

UK£36.3b

Power Grid Corporation of India

BSE:532898

₹1.4t

Terna - Rete Elettrica Nazionale Società per Azioni

BIT:TRN

€13.0b

Elia Group

ENXTBR:ELI

€7.5b

Price History & Performance

Summary of all time highs, changes and price drops for Red Eléctrica Corporación
Historical stock prices
Current Share Price€18.40
52 Week High€18.62
52 Week Low€13.57
Beta0.32
1 Month Change1.85%
3 Month Change8.01%
1 Year Change7.41%
3 Year Change-3.23%
5 Year Change10.48%
Change since IPO867.15%

Recent News & Updates

Nov 08
These 4 Measures Indicate That Red Eléctrica Corporación (BME:REE) Is Using Debt Reasonably Well

These 4 Measures Indicate That Red Eléctrica Corporación (BME:REE) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Oct 22
Investors Met With Slowing Returns on Capital At Red Eléctrica Corporación (BME:REE)

Investors Met With Slowing Returns on Capital At Red Eléctrica Corporación (BME:REE)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...

Oct 05
Estimating The Intrinsic Value Of Red Eléctrica Corporación, S.A. (BME:REE)

Estimating The Intrinsic Value Of Red Eléctrica Corporación, S.A. (BME:REE)

In this article we are going to estimate the intrinsic value of Red Eléctrica Corporación, S.A. ( BME:REE ) by taking...

Jul 30
Red Eléctrica Corporación (BME:REE) Seems To Use Debt Quite Sensibly

Red Eléctrica Corporación (BME:REE) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

REEES Electric UtilitiesES Market
7D1.8%0.2%-3.0%
1Y7.4%-9.1%1.8%

Return vs Industry: REE exceeded the Spanish Electric Utilities industry which returned -5.4% over the past year.

Return vs Market: REE matched the Spanish Market which returned 7.4% over the past year.

Price Volatility

Is REE's price volatile compared to industry and market?
REE volatility
REE Average Weekly Movement2.0%
Electric Utilities Industry Average Movement3.6%
Market Average Movement3.6%
10% most volatile stocks in ES Market6.1%
10% least volatile stocks in ES Market0.7%

Stable Share Price: REE is less volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: REE's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19852,091Roberto García Merinohttps://www.ree.es

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 44,468 kilometers; and has 93,545 MVA of transformation capacity. The company also provides advisory, 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 Fundamentals Summary

How do Red Eléctrica Corporación's earnings and revenue compare to its market cap?
REE fundamental statistics
Market Cap€9.92b
Earnings (TTM)€664.99m
Revenue (TTM)€2.04b

14.9x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REE income statement (TTM)
Revenue€2.04b
Cost of Revenue€19.96m
Gross Profit€2.02b
Expenses€1.36b
Earnings€664.99m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.23
Gross Margin99.02%
Net Profit Margin32.52%
Debt/Equity Ratio186.6%

How did REE perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

81%

Payout Ratio

Does REE pay a reliable dividends?

See REE dividend history and benchmarks
When do you need to buy REE by to receive an upcoming dividend?
Red Eléctrica Corporación dividend dates
Ex Dividend DateJan 05 2022
Dividend Pay DateJan 07 2022
Days until Ex dividend39 days
Days until Dividend pay date41 days

Does REE pay a reliable dividends?

See REE dividend history and benchmarks

Valuation

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

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REE (€18.4) is trading below our estimate of fair value (€20.5)

Significantly Below Fair Value: REE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: REE is good value based on its PE Ratio (14.9x) compared to the Spanish Electric Utilities industry average (17.6x).

PE vs Market: REE is good value based on its PE Ratio (14.9x) compared to the Spanish market (19.9x).


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's PB Ratio (2.7x) is in line with the ES Electric Utilities industry average.


Future Growth

How is Red Eléctrica Corporación forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-6.0%

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 (-6% per year).

Earnings vs Market: REE's earnings are forecast to decline over the next 3 years (-6% per year).

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

Revenue vs Market: REE's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: REE's revenue is forecast to decline over the next 3 years (-2% 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 (15%).


Past Performance

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

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REE has high quality earnings.

Growing Profit Margin: REE's current net profit margins (32.5%) are lower than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: REE's earnings have grown by 0.5% 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 (-4.4%) over the past year, making it difficult to compare to the Electric Utilities industry average (12.8%).


Return on Equity

High ROE: REE's Return on Equity (17.9%) is considered low.


Financial Health

How is Red Eléctrica Corporación's financial position?


Financial Position Analysis

Short Term Liabilities: REE's short term assets (€2.2B) exceed its short term liabilities (€1.7B).

Long Term Liabilities: REE's short term assets (€2.2B) do not cover its long term liabilities (€7.8B).


Debt to Equity History and Analysis

Debt Level: REE's net debt to equity ratio (162.2%) is considered high.

Reducing Debt: REE's debt to equity ratio has reduced from 190.5% to 186.6% over the past 5 years.

Debt Coverage: REE's debt is well covered by operating cash flow (23.4%).

Interest Coverage: REE's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Dividend

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

5.43%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 27 2021Ex Dividend DateJan 05 2022Dividend Pay DateJan 07 20222 days from Ex DividendBuy in the next 39 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: REE's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Spanish market (1.69%).

High Dividend: REE's dividend (5.43%) is low compared to the top 25% of dividend payers in the Spanish market (5.64%).


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: At its current payout ratio (81.1%), REE's 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 (78.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Roberto García Merino

2.5yrs

Tenure

€890,000

Compensation

Mr. Roberto García Merino has been Chief Executive Officer and Executive Director of Red Eléctrica Corporación, S.A. since May 27, 2019. Mr. Merino served as Executive Director of Telecommunications and In...


CEO Compensation Analysis

Compensation vs Market: Roberto's total compensation ($USD1.01M) is below average for companies of similar size in the Spanish market ($USD3.11M).

Compensation vs Earnings: Roberto's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: REE's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: REE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 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: €9.918b
  • Shares outstanding: 539.00m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:16
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.