ENXTLS:RENE

Stock Analysis Report

REN - Redes Energéticas Nacionais SGPS

Executive Summary

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

Snowflake

Fundamentals

Undervalued second-rate 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


Market Performance


7 Day Return

-1.5%

RENE

1.4%

PT Integrated Utilities

1.2%

PT Market


1 Year Return

9.5%

RENE

15.4%

PT Integrated Utilities

3.1%

PT Market

Return vs Industry: RENE underperformed the Portuguese Integrated Utilities industry which returned 15.4% over the past year.

Return vs Market: RENE exceeded the Portuguese Market which returned 3.1% over the past year.


Shareholder returns

RENEIndustryMarket
7 Day-1.5%1.4%1.2%
30 Day3.0%4.4%-0.4%
90 Day3.8%4.0%-1.0%
1 Year17.4%9.5%21.3%15.4%7.4%3.1%
3 Year25.9%-2.3%24.3%4.9%22.3%-14.6%
5 Year56.6%7.2%16.8%-10.3%9.4%-59.3%

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?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RENE (€2.61) is trading below our estimate of fair value (€4.42)

Significantly Undervalued: 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 (15.2x) compared to the Integrated Utilities industry average (22.8x).

PE vs Market: RENE is good value based on its PE Ratio (15.2x) compared to the Portuguese market (15.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: RENE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (1.8x).


Next Steps

Future Growth

How is REN - Redes Energéticas Nacionais SGPS forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RENE's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: RENE's earnings are forecast to decline over the next 3 years (-1.2% per year).

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

Revenue vs Market: RENE's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: RENE's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RENE's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

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

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RENE's earnings have grown by 1.6% 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 (-9.4%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-2.8%).


Return on Equity

High ROE: RENE's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: RENE has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: RENE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: RENE's short term assets (€382.6M) do not cover its short term liabilities (€783.7M)

Long Term Liabilities: RENE's short term assets (382.6M) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: RENE's debt to equity ratio (195.5%) is considered high

Reducing Debt: RENE's debt to equity ratio has reduced from 245.9% to 195.5% over the past 5 years.

Debt Coverage: RENE's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: RENE's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: RENE has a low level of unsold assets or inventory.

Debt Coverage by Assets: RENE's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

6.56%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%3.0%markettop25%6.8%industryaverage4.6%forecastin3Years6.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RENE's dividend (6.56%) is higher than the bottom 25% of dividend payers in the Portuguese market (3.03%).

High Dividend: RENE's dividend (6.56%) is low compared to the top 25% of dividend payers in the Portuguese market (6.75%).

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 (99.5%), 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 (98.5% payout ratio).


Next Steps

Management

What is the CEO of REN - Redes Energéticas Nacionais SGPS's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average board tenure


CEO

Rodrigo de Araújo Costa (60yo)

4.7yrs

Tenure

€606,567

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 ($USD674.64K) is about average for companies of similar size in the Portuguese market ($USD691.05K).

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


Board Age and Tenure

6.0yrs

Average Tenure

54.5yo

Average Age

Experienced Board: RENE's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rodrigo de Araújo Costa (60yo)

    Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: €606.57k
  • Ana Rosa Fonseca Pereira de Matos (48yo)

    Head of Investor Relations

    • Tenure: 0yrs
  • Gonçalo João Figueira Soares (48yo)

    CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: €664.42k
  • João Caetano Carreira Conceição (45yo)

    COO & Executive Director

    • Tenure: 10.4yrs
    • Compensation: €664.42k
  • Ana Margarida da Silva Baptista Moreira Rato

    Head of Communications & Sustainability

    • Tenure: 0yrs
  • Elsa de Carvalho Domingos

    Manager of Human Resources

    • Tenure: 0yrs
  • Brígida Palma

    Manager of Accounting & General Services

    • Tenure: 0yrs
  • Marta Afonso

    Manager of Legal Services & Company Secretary

    • Tenure: 0yrs
  • Zhang Xin

    Chief Technical Officer

    • Tenure: 3.3yrs
  • Nuno Ribeiro

    Manager of Investment

    • Tenure: 0yrs

Board Members

  • Rodrigo de Araújo Costa (60yo)

    Chairman & CEO

    • Tenure: 4.7yrs
    • Compensation: €606.57k
  • Omar Bin Bin Nasser Al-Wahaibi (54yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €36.00k
  • Gonçalo João Figueira Soares (48yo)

    CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: €664.42k
  • João Caetano Carreira Conceição (45yo)

    COO & Executive Director

    • Tenure: 10.4yrs
    • Compensation: €664.42k
  • Manuel de Sousa Sebastião (67yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €75.00k
  • Guangchao Zhu (52yo)

    Vice Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: €80.00k
  • Mengrong Cheng (50yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: €36.00k
  • José Luís Fazenda Duarte (55yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: €60.00k
  • Jorge Correia (59yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €36.00k
  • Maria Barbot (57yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €60.00k

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: €1.728b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RENEENXTLS (Euronext Lisbon)YesClass A Ordinary SharesPTEURJul 2007
RN4DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURJul 2007
0KBTLSE (London Stock Exchange)YesClass A Ordinary SharesGBEURJul 2007
RENEUBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Ordinary SharesGBEURJul 2007
RENE NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNJul 2007

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:06
End of Day Share Price2019/10/17 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.