REDES ENERGETICAS NACIONAIS (RENE.LS)
PTREL0AM0008 - Common Stock
We assign a fundamental rating of 4 out of 10 to RENE. RENE was compared to 13 industry peers in the Multi-Utilities industry. There are concerns on the financial health of RENE while its profitability can be described as average. RENE is valied quite expensively at the moment, while it does show a decent growth rate. Finally RENE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RENE had positive earnings in the past year.
RENE had a negative operating cash flow in the past year.
In the past 5 years RENE has always been profitable.
Of the past 5 years RENE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.77%, RENE is in line with its industry, outperforming 53.85% of the companies in the same industry.
RENE has a Return On Equity (11.72%) which is comparable to the rest of the industry.
RENE has a better Return On Invested Capital (7.73%) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 11.72% | ||
| ROIC | 7.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RENE's Profit Margin of 12.90% is amongst the best of the industry. RENE outperforms 92.31% of its industry peers.
RENE's Profit Margin has been stable in the last couple of years.
RENE has a better Operating Margin (30.01%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of RENE has declined.
The Gross Margin of RENE (77.50%) is better than 92.31% of its industry peers.
RENE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.01% | ||
| PM (TTM) | 12.9% | ||
| GM | 77.5% |
OM growth 3Y-3.68%
OM growth 5Y-5.36%
PM growth 3Y1.48%
PM growth 5Y-1.1%
GM growth 3Y-8.97%
GM growth 5Y-6.51%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that RENE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.57, RENE is doing worse than 92.31% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that RENE has dependencies on debt financing.
RENE has a Debt to Equity ratio of 1.21. This is amongst the best in the industry. RENE outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC1.29
WACC5.98%
2.3 Liquidity
A Current Ratio of 0.58 indicates that RENE may have some problems paying its short term obligations.
The Current ratio of RENE (0.58) is worse than 92.31% of its industry peers.
A Quick Ratio of 0.58 indicates that RENE may have some problems paying its short term obligations.
The Quick ratio of RENE (0.58) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.48% over the past year.
The Earnings Per Share has been growing slightly by 4.32% on average over the past years.
The Revenue has grown by 10.30% in the past year. This is quite good.
The Revenue has been growing slightly by 6.39% on average over the past years.
EPS 1Y (TTM)24.48%
EPS 3Y9.49%
EPS 5Y4.32%
EPS growth Q2Q-6.54%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Revenue growth Q2Q16.35%
3.2 Future
The Earnings Per Share is expected to decrease by -9.22% on average over the next years.
The Revenue is expected to grow by 0.18% on average over the next years.
EPS Next Y-11.85%
EPS Next 2Y-9.39%
EPS Next 3Y-7.03%
EPS Next 5Y-9.22%
Revenue Next Year-0.33%
Revenue Next 2Y1.18%
Revenue Next 3Y-0.39%
Revenue Next 5Y0.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RENE is valuated reasonably with a Price/Earnings ratio of 8.85.
Compared to the rest of the industry, the Price/Earnings ratio of RENE indicates a somewhat cheap valuation: RENE is cheaper than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.80. RENE is valued rather cheaply when compared to this.
RENE is valuated correctly with a Price/Forward Earnings ratio of 12.76.
Based on the Price/Forward Earnings ratio, RENE is valued a bit more expensive than 69.23% of the companies in the same industry.
RENE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of RENE may justify a higher PE ratio.
A cheap valuation may be justified as RENE's earnings are expected to decrease with -7.03% in the coming years.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y-9.39%
EPS Next 3Y-7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.95%, RENE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.12, RENE pays a bit more dividend than its industry peers.
RENE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
5.2 History
On average, the dividend of RENE grows each year by 8.07%, which is quite nice.
Dividend Growth(5Y)8.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
58.39% of the earnings are spent on dividend by RENE. This is a bit on the high side, but may be sustainable.
RENE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP58.39%
EPS Next 2Y-9.39%
EPS Next 3Y-7.03%
REDES ENERGETICAS NACIONAIS
ELI:RENE (4/19/2024, 5:29:47 PM)
2.213
+0.01 (+0.59%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.85 | ||
| Fwd PE | 12.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 11.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.01% | ||
| PM (TTM) | 12.9% | ||
| GM | 77.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.48%
EPS 3Y9.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.3%
Revenue growth 3Y9.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y