Redeia Corporacion SA RED

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€15.57 −0.07 (0.45%)

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As of Apr 26, 2024 3:35pm Delayed Price Closed

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Company Report

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Redeia' Dividend Visibility Is Lower Than Most of European Utilities

Tancrede Fulop Mar 28, 2024

Redeia's fully regulated electric transmission business has protected the company from the doldrums faced by most diversified European utilities between 2011 and 2016. During the 2014-19 regulatory period, Redeia has delivered 7% annual dividend growth.

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Price vs Fair Value

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RED is trading within a range we consider fairly valued.

Price

€16.01

Apr 23, 2024

Fair Value

€65.20

Mar 28, 2022

Uncertainty

Low

1-Star Price: €83.54
5-Star Price: €58.70
Economic Moat: Npln
Capital Allocation: Mggznqqgf

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.

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Trading Information

Previous Close Price: €15.64
Day Range: €15.53–15.70
52-Week Range: €14.36–16.72
Bid/Ask: — / —
Market Cap: €8.40 Bil
Volume/Avg: 914,085 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized): 13.07
Price/Sales: 4.12
Dividend Yield (Trailing): 6.42%
Dividend Yield (Forward): 6.42%
Total Yield: 6.42%

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: 2,447
Website: https://www.ree.es

Competitors

Valuation

Metric	RED	SSE	NGG
Price/Earnings (Normalized)	13.07	10.41	15.98
Price/Book Value	1.54	2.22	1.36
Price/Sales	4.12	1.53	1.93
Price/Cash Flow	8.53	7.56	8.62

Price/Earnings

RED

SSE

NGG

Financial Strength

Metric	RED	SSE	NGG
Quick Ratio	—	0.74	0.64
Current Ratio	1.44	0.91	0.93
Interest Coverage	6.86	2.78	2.81

Quick Ratio

RED

SSE

NGG

Profitability

Metric	RED	SSE	NGG
Return on Assets (Normalized)	4.55%	6.38%	2.34%
Return on Equity (Normalized)	13.11%	21.19%	7.92%
Return on Invested Capital (Normalized)	9.85%	9.72%	4.62%

Return on Assets

RED

SSE

NGG

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