Investors Overdiscount Redeia’s Permitting Issues in Spain
Redeia operates Spain's electricity transmission grid. It is also involved in some noncore businesses like transmission lines in Brazil and a fiber-optic telecom network in Spain.
Redeia Corporacion SA RED
Bulls Say, Bears Say
Bulls
Unlike peers, Redeia will not raise equity to fund its step-up in investments.
Bears
The regulator proposals for the 2026-31 regime were much less favorable than expected. The new efficiency incentives mechanism is so stringent that it will prevent Redeia from achieving any cost outperformance.
Trading Information
- Previous Close Price
- €15.65
- Day Range
- €15.69–15.84
- 52-Week Range
- €14.15–16.52
- Bid/Ask
- €15.80 / €15.85
- Shares Outstanding
- 539.60M
- Market Cap
- €8.55B
- Volume/Avg
- 977,922 / 1M
Key Statistics
- Price/Earnings (Normalized)
- 11.54
- Price/Sales
- 4.89
- Dividend Yield (Trailing)
- 5.05%
- Dividend Yield (Forward)
- 5.05%
- Dividend Payment Schedule
- Jan, Jul
- Total Yield
- 5.05%
Company Profile
Redeia owns and operates the Spanish electric transmission system. The company has acquired almost all of the nation's power grid, which other owners were forced to sell to it by government decree. Its activities are regulated by the National Energy Commission, which answers to the Spanish legislature. Redeia also operates a small fiber optics network in Spain and has a growing Latin American infrastructure business.
- Sector
- Utilities
- Industry
- Utilities - Regulated Electric
- Stock Style Box
- Mid Value
- Total Number of Employees
- 2,136
- Website
- https://www.ree.es
Competitors
Valuation
Metric | RED | NGG | SSE |
|---|---|---|---|
Price/Earnings (Normalized) | 11.54 | 18.23 | 23.13 |
Price/Book Value | 1.46 | 1.59 | 2.56 |
Price/Sales | 4.89 | 3.34 | 3.03 |
Price/Cash Flow | 7.48 | 10.42 | 10.35 |
Price/Earnings
RED
NGG
SSE
Financial Strength
Metric | RED | NGG | SSE |
|---|---|---|---|
Quick Ratio | 0.00 | 0.65 | 0.88 |
Current Ratio | 1.14 | 0.76 | 1.20 |
Interest Coverage | 6.48 | 3.31 | 6.22 |
Quick Ratio
RED
NGG
SSE
Profitability
Metric | RED | NGG | SSE |
|---|---|---|---|
Return on Assets (Normalized) | 3.50% | 3.63% | 5.46% |
Return on Equity (Normalized) | 10.05% | 10.13% | 16.09% |
Return on Invested Capital (Normalized) | 7.93% | 5.67% | 7.34% |
Return on Assets
RED
NGG
SSE
Utilities - Regulated Electric Industry Comparables
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|---|---|---|---|---|---|---|
| NextEra Energy Inc NEE | LOCK|VW%cg<tg | LOCK|tT!Y | $180B | |||
| Southern Co SO | LOCK|s>%wd#y# | LOCK|&Qm@$ | $109B | |||
| Duke Energy Corp DUK | LOCK|@^Lq#! | LOCK|m>Hq | $100B | |||
| National Grid PLC ADR NGG | LOCK|@F>d^G& | LOCK|Kh$gM | $84B | |||
| American Electric Power Co Inc AEP | LOCK|Xc<?T$% | LOCK|HX#@ | $70B | |||
| Dominion Energy Inc D | LOCK|WG?#Kdx | LOCK|$ptx | $60B | |||
| Entergy Corp ETR | LOCK|bWGpl<? | LOCK|RBYzH | $54B | |||
| Xcel Energy Inc XEL | LOCK|rw##m^ | LOCK|ggK& | $52B | |||
| Exelon Corp EXC | LOCK|ht#B$! | LOCK|zX@jx | $47B | |||
| Consolidated Edison Inc ED | LOCK|>@Yz#lK | LOCK|%HL | $44B |
United States