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Redeia Corporacion SA RED

Morningstar Rating
€17.41 +0.08 (0.46%)
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Company Report

European Utilities Edged Up in Q2 on Soaring Power Prices, High Interest Rates Still a Drag

Utilities have reversed part of their first quarter’s fall, thanks to a strong rebound in power prices. Moreover, the deep undervaluation of renewables developers has driven takeovers by big investment firms at very high multiples. Neoen’s main shareholders accepted an offer at 18 times the EBITDA. The sector is still significantly lagging the market in 2024 because of high interest rates. Should they fall, it would boost the sector.

Price vs Fair Value

RED is trading within a range we consider fairly valued.
Price
€17.41
Fair Value
€99.70
Uncertainty
Low
1-Star Price
€57.54
5-Star Price
€17.10
Economic Moat
Hfpd
Capital Allocation
Qcjfhvwh

Bulls Say, Bears Say

Bulls

Investment opportunities in Spain are significant in the 2020s, which should boost earnings.

Bears

The increasing weight of liberalized activities reduces earnings visibility.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
€17.33
Day Range
€17.2117.53
52-Week Range
€14.3617.53
Bid/Ask
/
Market Cap
€9.40 Bil
Volume/Avg
3.2 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
14.74
Price/Sales
4.70
Dividend Yield (Trailing)
5.74%
Dividend Yield (Forward)
5.74%
Total Yield
5.74%

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 fibre-optics network in Spain and has a growing Latin American infrastructure business. The group significantly increased its exposure to telecommunications by acquiring Spanish communications satellite operator Hispasat from Abertis in 2019.
Sector
Utilities
Industry
Utilities - Regulated Electric
Stock Style Box
Mid Core
Total Number of Employees
2,468

Competitors

Valuation

Metric
RED
NGG
SSE
Price/Earnings (Normalized)
14.7410.7111.00
Price/Book Value
1.701.212.14
Price/Sales
4.701.831.89
Price/Cash Flow
7.496.626.93
Price/Earnings
RED
NGG
SSE

Financial Strength

Metric
RED
NGG
SSE
Quick Ratio
0.640.76
Current Ratio
1.410.911.10
Interest Coverage
7.032.638.21
Quick Ratio
RED
NGG
SSE

Profitability

Metric
RED
NGG
SSE
Return on Assets (Normalized)
4.51%3.03%6.37%
Return on Equity (Normalized)
12.37%9.72%20.08%
Return on Invested Capital (Normalized)
9.54%5.36%9.01%
Return on Assets
RED
NGG
SSE
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Regulated Electric Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NextEra Energy Inc
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National Grid PLC ADR
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HcrfhyksqSgg$55.0 Bil
PG&E Corp
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TnkkktcdSystb$46.5 Bil
American Electric Power Co Inc
AEP
YwtkpsqyGvtmy$46.1 Bil
Dominion Energy Inc
D
DphclyqjdKtqnyh$41.4 Bil
Public Service Enterprise Group Inc
PEG
LmdxktdjRrxnpdt$36.5 Bil
Exelon Corp
EXC
TzxvgbfkTscpx$34.9 Bil
Consolidated Edison Inc
ED
TlzvjbmxgGywn$31.3 Bil

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