ENXTLS:RENE

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REN - Redes Energéticas Nacionais SGPS

Market Cap

€1.6b

Last Updated

2021/08/04 21:32 UTC

Data Sources

Company Financials +

Executive Summary

REN - Redes Energéticas Nacionais, SGPS, S.A., through its subsidiaries, engages in the transmission of electricity and natural gas in Portugal. More Details


Snowflake Analysis

Established dividend payer and fair value.

Share Price & News

How has REN - Redes Energéticas Nacionais SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.8%

RENE

0.8%

PT Integrated Utilities

1.5%

PT Market


1 Year Return

-2.5%

RENE

7.7%

PT Integrated Utilities

17.5%

PT Market

Return vs Industry: RENE underperformed the Portuguese Integrated Utilities industry which returned 7.7% over the past year.

Return vs Market: RENE underperformed the Portuguese Market which returned 17.5% over the past year.


Shareholder returns

RENEIndustryMarket
7 Day0.8%0.8%1.5%
30 Day1.1%0.7%0.3%
90 Day-4.0%-0.3%1.2%
1 Year4.8%-2.5%12.0%7.7%21.2%17.5%
3 Year17.9%-4.4%26.1%10.9%18.3%5.2%
5 Year31.3%-11.5%28.3%-0.06%50.3%-5.9%

Long-Term Price Volatility Vs. Market

How volatile is REN - Redes Energéticas Nacionais SGPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is REN - Redes Energéticas Nacionais SGPS undervalued compared to its fair value and its price relative to the market?

15.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RENE (€2.39) is trading above our estimate of fair value (€1.96)

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


Price To Earnings Ratio

PE vs Industry: RENE is good value based on its PE Ratio (15.4x) compared to the European Integrated Utilities industry average (16.7x).

PE vs Market: RENE is good value based on its PE Ratio (15.4x) compared to the Portuguese market (16x).


Price to Earnings Growth Ratio

PEG Ratio: RENE is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: RENE is good value based on its PB Ratio (1.2x) compared to the XE Integrated Utilities industry average (1.7x).


Future Growth

How is REN - Redes Energéticas Nacionais SGPS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RENE's forecast earnings growth (2.3% per year) is above the savings rate (1.6%).

Earnings vs Market: RENE's earnings (2.3% per year) are forecast to grow slower than the Portuguese market (10.6% per year).

High Growth Earnings: RENE's earnings are forecast to grow, but not significantly.

Revenue vs Market: RENE's revenue (0.4% per year) is forecast to grow slower than the Portuguese market (5.5% per year).

High Growth Revenue: RENE's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RENE's Return on Equity is forecast to be low in 3 years time (8.4%).


Past Performance

How has REN - Redes Energéticas Nacionais SGPS performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RENE has high quality earnings.

Growing Profit Margin: RENE's current net profit margins (13.8%) are lower than last year (15.1%).


Past Earnings Growth Analysis

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

Accelerating Growth: RENE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RENE had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (0.1%).


Return on Equity

High ROE: RENE's Return on Equity (7.7%) is considered low.


Financial Health

How is REN - Redes Energéticas Nacionais SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: RENE's short term assets (€682.4M) do not cover its short term liabilities (€859.7M).

Long Term Liabilities: RENE's short term assets (€682.4M) do not cover its long term liabilities (€3.2B).


Debt to Equity History and Analysis

Debt Level: RENE's debt to equity ratio (215.5%) is considered high.

Reducing Debt: RENE's debt to equity ratio has reduced from 241% to 215.5% over the past 5 years.

Debt Coverage: RENE's debt is well covered by operating cash flow (20%).

Interest Coverage: RENE's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

What is REN - Redes Energéticas Nacionais SGPS current dividend yield, its reliability and sustainability?

7.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RENE's dividend (7.17%) is higher than the bottom 25% of dividend payers in the Portuguese market (1.73%).

High Dividend: RENE's dividend (7.17%) is in the top 25% of dividend payers in the Portuguese market (5.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.4%), RENE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RENE's dividends in 3 years are forecast to be covered by earnings (86.8% payout ratio).


Next Steps

Management

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

6.6yrs

Average board tenure


CEO

Rodrigo de Araújo Costa (62 yo)

6.5yrs

Tenure

€971,156

Compensation

Mr. Rodrigo Jorge de Araújo Costa has been Chairman of the Board of REN - Redes Energéticas Nacionais, SGPS, S.A. since April 2015 and its Chief Executive Officer since February 2015. Mr. de Araújo Costa s...


CEO Compensation Analysis

Compensation vs Market: Rodrigo's total compensation ($USD1.15M) is about average for companies of similar size in the Portuguese market ($USD1.14M).

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


Board Members

Experienced Board: RENE's board of directors are considered experienced (6.6 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

REN - Redes Energéticas Nacionais, SGPS, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: REN - Redes Energéticas Nacionais, SGPS, S.A.
  • Ticker: RENE
  • Exchange: ENXTLS
  • Founded: 1994
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €1.582b
  • Shares outstanding: 663.31m
  • Website: https://www.ren.pt

Number of Employees


Location

  • REN - Redes Energéticas Nacionais, SGPS, S.A.
  • Avenida Estados Unidos da América, 55
  • Lisbon
  • Lisbon
  • 1749-061
  • Portugal

Listings


Biography

REN - Redes Energéticas Nacionais, SGPS, S.A., through its subsidiaries, engages in the transmission of electricity and natural gas in Portugal. It operates in two segments, Electricity and Gas; and Teleco...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 21:32
End of Day Share Price2021/08/04 00:00
Earnings2021/06/30
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.