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

0%

RENE

2.8%

PT Integrated Utilities

0.6%

PT Market


1 Year Return

4.0%

RENE

9.8%

PT Integrated Utilities

-1.7%

PT Market

RENE underperformed the Integrated Utilities industry which returned 10.4% over the past year.

RENE outperformed the Market in Portugal which returned -1.7% over the past year.


Share holder returns

RENEIndustryMarket
7 Day0%2.8%0.6%
30 Day-0.4%4.2%4.4%
90 Day3.1%3.2%1.6%
1 Year11.5%4.0%16.1%9.8%2.4%-1.7%
3 Year27.3%-1.3%19.6%-0.6%28.0%-8.5%
5 Year39.5%-4.5%9.6%-16.2%1.3%-62.6%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

REN - Redes Energéticas Nacionais SGPS's share price is below the future cash flow value, and at a moderate discount (> 20%).

REN - Redes Energéticas Nacionais SGPS's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

REN - Redes Energéticas Nacionais SGPS is good value based on earnings compared to the Europe Integrated Utilities industry average.

REN - Redes Energéticas Nacionais SGPS is good value based on earnings compared to the Portugal market.


Price Based on Expected Growth

REN - Redes Energéticas Nacionais SGPS earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

REN - Redes Energéticas Nacionais SGPS is good value based on assets compared to the Europe Integrated Utilities industry average.


Next Steps

Future Growth

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

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

REN - Redes Energéticas Nacionais SGPS's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

REN - Redes Energéticas Nacionais SGPS's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

REN - Redes Energéticas Nacionais SGPS's revenues are expected to decrease over the next 1-3 years, this is below the Portugal market average.

REN - Redes Energéticas Nacionais SGPS's earnings are expected to decrease over the next 1-3 years, this is below the Portugal market average.

REN - Redes Energéticas Nacionais SGPS's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

REN - Redes Energéticas Nacionais SGPS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

REN - Redes Energéticas Nacionais SGPS's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

REN - Redes Energéticas Nacionais SGPS's 1-year earnings growth is negative, it can't be compared to the 5-year average.

REN - Redes Energéticas Nacionais SGPS's 1-year earnings growth is negative, it can't be compared to the Europe Integrated Utilities industry average.


Return on Equity

REN - Redes Energéticas Nacionais SGPS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

REN - Redes Energéticas Nacionais SGPS used its assets more efficiently than the Europe Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

REN - Redes Energéticas Nacionais SGPS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

REN - Redes Energéticas Nacionais SGPS's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

REN - Redes Energéticas Nacionais SGPS's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

REN - Redes Energéticas Nacionais SGPS's level of debt (195.5%) 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 (245.9% vs 195.5% today).

Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).


Balance Sheet

Low level of unsold assets.

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?

6.76%

Expected Dividend Yield


Dividend Yield and Payments Analysis

REN - Redes Energéticas Nacionais SGPS's pays a higher dividend yield than the bottom 25% of dividend payers in Portugal (2.93%).

REN - Redes Energéticas Nacionais SGPS's dividend is below the markets top 25% of dividend payers in Portugal (6.99%).

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 not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


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)

4.6yrs

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

Rodrigo's remuneration is about average for companies of similar size in Portugal.

Rodrigo's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

6.0yrs

Average Tenure

54.5yo

Average Age

The tenure for the REN - Redes Energéticas Nacionais SGPS board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rodrigo de Araújo Costa (60yo)

    Chairman & CEO

    • Tenure: 4.6yrs
    • 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: 7.7yrs
    • Compensation: €664.42k
  • João Caetano Carreira Conceição (45yo)

    COO & Executive Director

    • Tenure: 10.3yrs
    • 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: 3.2yrs
  • Nuno Ribeiro

    Manager of Investment

    • Tenure: 0yrs

Board Members

  • Rodrigo de Araújo Costa (60yo)

    Chairman & CEO

    • Tenure: 4.6yrs
    • Compensation: €606.57k
  • Omar Bin Bin Nasser Al-Wahaibi (54yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: €36.00k
  • Gonçalo João Figueira Soares (48yo)

    CFO & Executive Director

    • Tenure: 7.7yrs
    • Compensation: €664.42k
  • João Caetano Carreira Conceição (45yo)

    COO & Executive Director

    • Tenure: 10.3yrs
    • Compensation: €664.42k
  • Manuel de Sousa Sebastião (67yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: €75.00k
  • Guangchao Zhu (52yo)

    Vice Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: €80.00k
  • Mengrong Cheng (50yo)

    Non-Executive Director

    • Tenure: 7.5yrs
    • 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: 4.7yrs
    • Compensation: €36.00k
  • Maria Barbot (57yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • 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: €1.672b
  • 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 Analysis2019/09/20 21:05
End of Day Share Price2019/09/20 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.