REN - Redes Energéticas Nacionais SGPS
Market Cap
€1.5b
Last Updated
2021/06/20 19:43 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
Rewards
Risk Analysis
Dividend of 7.42% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Undervalued average dividend payer.
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
1.1%
RENE
-1.0%
PT Integrated Utilities
-0.5%
PT Market
1 Year Return
-6.1%
RENE
6.6%
PT Integrated Utilities
14.0%
PT Market
Return vs Industry: RENE underperformed the Portuguese Integrated Utilities industry which returned 6.6% over the past year.
Return vs Market: RENE underperformed the Portuguese Market which returned 14% over the past year.
Shareholder returns
| RENE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | -1.0% | -0.5% |
| 30 Day | -0.6% | -3.1% | -3.2% |
| 90 Day | -3.4% | 6.1% | 2.5% |
| 1 Year | 0.8%-6.1% | 12.0%6.6% | 19.1%14.0% |
| 3 Year | 21.3%-1.6% | 28.1%13.0% | 17.7%4.8% |
| 5 Year | 36.5%-7.9% | 40.5%9.8% | 60.2%-0.2% |
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?
41.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RENE (€2.31) is trading below our estimate of fair value (€3.93)
Significantly Below Fair Value: RENE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RENE is good value based on its PE Ratio (14x) compared to the European Integrated Utilities industry average (16.9x).
PE vs Market: RENE is good value based on its PE Ratio (14x) compared to the Portuguese market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: RENE is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: RENE is good value based on its PB Ratio (1.1x) 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 5 analysts?
4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RENE's forecast earnings growth (4.7% per year) is above the savings rate (1.6%).
Earnings vs Market: RENE's earnings (4.7% per year) are forecast to grow slower than the Portuguese market (11.2% per year).
High Growth Earnings: RENE's earnings are forecast to grow, but not significantly.
Revenue vs Market: RENE's revenue is expected to decline over the next 3 years (-2.4% per year).
High Growth Revenue: RENE's revenue is forecast to decline over the next 3 years (-2.4% 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 (8.6%).
Past Performance
How has REN - Redes Energéticas Nacionais SGPS performed over the past 5 years?
2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RENE has high quality earnings.
Growing Profit Margin: RENE's current net profit margins (15%) are higher than last year (14.5%).
Past Earnings Growth Analysis
Earnings Trend: RENE's earnings have grown by 2.2% 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 (-0.5%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-0.8%).
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 (€635.0M) do not cover its short term liabilities (€992.4M).
Long Term Liabilities: RENE's short term assets (€635.0M) do not cover its long term liabilities (€2.9B).
Debt to Equity History and Analysis
Debt Level: RENE's debt to equity ratio (199%) is considered high.
Reducing Debt: RENE's debt to equity ratio has reduced from 224.6% to 199% over the past 5 years.
Debt Coverage: RENE's debt is not well covered by operating cash flow (17.5%).
Interest Coverage: RENE's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Dividend
What is REN - Redes Energéticas Nacionais SGPS current dividend yield, its reliability and sustainability?
7.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RENE's dividend (7.42%) is higher than the bottom 25% of dividend payers in the Portuguese market (1.89%).
High Dividend: RENE's dividend (7.42%) is in the top 25% of dividend payers in the Portuguese market (6.11%)
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 (103.6%), RENE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RENE's dividends in 3 years are not forecast to be well covered by earnings (93.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average board tenure
CEO
Rodrigo de Araújo Costa (61 yo)
6.33yrs
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 (6.4 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: €1.529b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/20 19:43 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.