REDES ENERGETICAS NACIONAIS (RENE.LS) Stock Fundamental Analysis
ELI:RENE - Euronext Lisbon - PTREL0AM0008 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RENE. RENE was compared to 12 industry peers in the Multi-Utilities industry. RENE has an excellent profitability rating, but there are concerns on its financial health. RENE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RENE had positive earnings in the past year.
In the past year RENE had a positive cash flow from operations.
RENE had positive earnings in each of the past 5 years.
Of the past 5 years RENE 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RENE (3.86%) is better than 66.67% of its industry peers.
The Return On Equity of RENE (12.94%) is comparable to the rest of the industry.
RENE has a Return On Invested Capital of 8.00%. This is amongst the best in the industry. RENE outperforms 83.33% of its industry peers.
RENE had an Average Return On Invested Capital over the past 3 years of 5.36%. This is in line with the industry average of 6.57%.
The 3 year average ROIC (5.36%) for RENE is below the current ROIC(8.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 12.94% | ||
| ROIC | 8% |
ROA(3y)2.39%
ROA(5y)2.2%
ROE(3y)9.02%
ROE(5y)8.34%
ROIC(3y)5.36%
ROIC(5y)4.97%
1.3 Margins
The Profit Margin of RENE (13.30%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of RENE has remained more or less at the same level.
With an excellent Operating Margin value of 24.61%, RENE belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RENE has declined.
RENE has a Gross Margin of 70.43%. This is amongst the best in the industry. RENE outperforms 91.67% of its industry peers.
RENE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.61% | ||
| PM (TTM) | 13.3% | ||
| GM | 70.43% |
OM growth 3Y-3.06%
OM growth 5Y-5.7%
PM growth 3Y8.45%
PM growth 5Y-0.44%
GM growth 3Y-2.57%
GM growth 5Y-2.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RENE is creating some value.
RENE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RENE remains at a similar level compared to 5 years ago.
Compared to 1 year ago, RENE has about the same debt to assets ratio.
2.2 Solvency
RENE has an Altman-Z score of 0.86. This is a bad value and indicates that RENE is not financially healthy and even has some risk of bankruptcy.
RENE has a worse Altman-Z score (0.86) than 75.00% of its industry peers.
The Debt to FCF ratio of RENE is 6.51, which is on the high side as it means it would take RENE, 6.51 years of fcf income to pay off all of its debts.
RENE has a better Debt to FCF ratio (6.51) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that RENE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, RENE belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.51 | ||
| Altman-Z | 0.86 |
ROIC/WACC1.39
WACC5.76%
2.3 Liquidity
RENE has a Current Ratio of 0.33. This is a bad value and indicates that RENE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.33, RENE is doing worse than 91.67% of the companies in the same industry.
RENE has a Quick Ratio of 0.33. This is a bad value and indicates that RENE is not financially healthy enough and could expect problems in meeting its short term obligations.
RENE's Quick ratio of 0.33 is on the low side compared to the rest of the industry. RENE is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.50% over the past year.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue has grown by 8.08% in the past year. This is quite good.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)28.5%
EPS 3Y16.26%
EPS 5Y5.29%
EPS Q2Q%42.86%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y7.16%
Revenue growth 5Y5.57%
Sales Q2Q%7.53%
3.2 Future
RENE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.05% yearly.
The Revenue is expected to grow by 0.06% on average over the next years.
EPS Next Y2.56%
EPS Next 2Y2.95%
EPS Next 3Y2.5%
EPS Next 5Y-3.05%
Revenue Next Year7.69%
Revenue Next 2Y6.36%
Revenue Next 3Y4.45%
Revenue Next 5Y0.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.28, which indicates a very decent valuation of RENE.
Compared to the rest of the industry, the Price/Earnings ratio of RENE indicates a somewhat cheap valuation: RENE is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.11, RENE is valued rather cheaply.
RENE is valuated correctly with a Price/Forward Earnings ratio of 14.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RENE indicates a rather expensive valuation: RENE more expensive than 83.33% of the companies listed in the same industry.
RENE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
RENE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RENE is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RENE does not grow enough to justify the current Price/Earnings ratio.
RENE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.62
PEG (5Y)1.75
EPS Next 2Y2.95%
EPS Next 3Y2.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.30%, RENE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.07, RENE pays a better dividend. On top of this RENE pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RENE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
5.2 History
The dividend of RENE decreases each year by -2.07%.
Dividend Growth(5Y)-2.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
RENE pays out 50.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
RENE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP50.42%
EPS Next 2Y2.95%
EPS Next 3Y2.5%
ELI:RENE (8/14/2025, 1:03:57 PM)
2.97
+0.01 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners26.1%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.98B
Analysts72
Price Target3.19 (7.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend0.15
Dividend Growth(5Y)-2.07%
DP50.42%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.29%
PT rev (3m)10.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.56%
Revenue NY rev (3m)3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 14.09 | ||
| P/S | 1.3 | ||
| P/FCF | 5.49 | ||
| P/OCF | 2.79 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY10.77%
EPS(NY)0.21
Fwd EY7.1%
FCF(TTM)0.54
FCFY18.21%
OCF(TTM)1.06
OCFY35.86%
SpS2.28
BVpS2.35
TBVpS-3.99
PEG (NY)3.62
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 12.94% | ||
| ROCE | 9.27% | ||
| ROIC | 8% | ||
| ROICexc | 8.1% | ||
| ROICexgc | N/A | ||
| OM | 24.61% | ||
| PM (TTM) | 13.3% | ||
| GM | 70.43% | ||
| FCFM | 23.69% |
ROA(3y)2.39%
ROA(5y)2.2%
ROE(3y)9.02%
ROE(5y)8.34%
ROIC(3y)5.36%
ROIC(5y)4.97%
ROICexc(3y)5.82%
ROICexc(5y)5.45%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.21%
ROCE(5y)5.75%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y2.25%
ROICexc growth 5Y0.7%
OM growth 3Y-3.06%
OM growth 5Y-5.7%
PM growth 3Y8.45%
PM growth 5Y-0.44%
GM growth 3Y-2.57%
GM growth 5Y-2.77%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 6.51 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 22.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 178.17% | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 0.86 |
F-Score5
WACC5.76%
ROIC/WACC1.39
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)26.47%
Cap/Sales(5y)25.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.5%
EPS 3Y16.26%
EPS 5Y5.29%
EPS Q2Q%42.86%
EPS Next Y2.56%
EPS Next 2Y2.95%
EPS Next 3Y2.5%
EPS Next 5Y-3.05%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y7.16%
Revenue growth 5Y5.57%
Sales Q2Q%7.53%
Revenue Next Year7.69%
Revenue Next 2Y6.36%
Revenue Next 3Y4.45%
Revenue Next 5Y0.06%
EBIT growth 1Y-6.65%
EBIT growth 3Y3.89%
EBIT growth 5Y-0.44%
EBIT Next Year106.64%
EBIT Next 3Y31.37%
EBIT Next 5Y17.81%
FCF growth 1Y1089.12%
FCF growth 3Y-13.59%
FCF growth 5Y13.81%
OCF growth 1Y190.98%
OCF growth 3Y-3.92%
OCF growth 5Y12.52%