REDES ENERGETICAS NACIONAIS (RENE.LS)
PTREL0AM0008 - Common Stock
Overall RENE gets a fundamental rating of 4 out of 10. We evaluated RENE against 15 industry peers in the Multi-Utilities industry. RENE scores excellent on profitability, but there are concerns on its financial health. RENE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RENE had positive earnings in the past year.
In the past year RENE has reported a negative cash flow from operations.
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
RENE's Return On Assets of 3.20% is fine compared to the rest of the industry. RENE outperforms 73.33% of its industry peers.
RENE has a better Return On Equity (12.33%) than 73.33% of its industry peers.
RENE has a better Return On Invested Capital (7.98%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RENE is in line with the industry average of 6.01%.
The last Return On Invested Capital (7.98%) for RENE is above the 3 year average (4.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 12.33% | ||
| ROIC | 7.98% |
ROA(3y)2.02%
ROA(5y)2.07%
ROE(3y)8.04%
ROE(5y)8.02%
ROIC(3y)4.39%
ROIC(5y)4.37%
1.3 Margins
With an excellent Profit Margin value of 12.94%, RENE belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of RENE has remained more or less at the same level.
RENE has a Operating Margin of 27.92%. This is amongst the best in the industry. RENE outperforms 93.33% of its industry peers.
In the last couple of years the Operating Margin of RENE has declined.
With an excellent Gross Margin value of 74.43%, RENE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Gross Margin of RENE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.92% | ||
| PM (TTM) | 12.94% | ||
| GM | 74.43% |
OM growth 3Y-3.68%
OM growth 5Y-5.36%
PM growth 3Y1.48%
PM growth 5Y-1.1%
GM growth 3Y-3.53%
GM growth 5Y-3.19%
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.
Compared to 5 years ago, RENE has about the same amount of shares outstanding.
Compared to 1 year ago, RENE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that RENE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RENE (0.66) is worse than 93.33% of its industry peers.
RENE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
RENE has a Debt to Equity ratio of 1.06. This is amongst the best in the industry. RENE outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC1.4
WACC5.72%
2.3 Liquidity
RENE has a Current Ratio of 0.52. 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 Current ratio of 0.52 is on the low side compared to the rest of the industry. RENE is outperformed by 93.33% of its industry peers.
RENE has a Quick Ratio of 0.52. This is a bad value and indicates that RENE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, RENE is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
RENE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.28%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue has grown by 15.67% in the past year. This is quite good.
Measured over the past years, RENE shows a small growth in Revenue. The Revenue has been growing by 6.39% on average per year.
EPS 1Y (TTM)21.28%
EPS 3Y11.2%
EPS 5Y5.29%
EPS Q2Q%-100%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Sales Q2Q%-2.22%
3.2 Future
Based on estimates for the next years, RENE will show a decrease in Earnings Per Share. The EPS will decrease by -1.22% on average per year.
Based on estimates for the next years, RENE will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
EPS Next Y-10.7%
EPS Next 2Y-5.43%
EPS Next 3Y-4.12%
EPS Next 5Y-1.22%
Revenue Next Year5.36%
Revenue Next 2Y4.86%
Revenue Next 3Y3.93%
Revenue Next 5Y2.59%
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
With a Price/Earnings ratio of 8.69, the valuation of RENE can be described as very reasonable.
66.67% of the companies in the same industry are more expensive than RENE, based on the Price/Earnings ratio.
RENE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 13.33, RENE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RENE indicates a slightly more expensive valuation: RENE is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. RENE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 13.33 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RENE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RENE's earnings are expected to decrease with -4.12% in the coming years.
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y-5.43%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
RENE has a Yearly Dividend Yield of 6.53%, which is a nice return.
Compared to an average industry Dividend Yield of 5.09, RENE pays a better dividend. On top of this RENE pays more dividend than 100.00% of the companies listed in the same industry.
RENE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
5.2 History
The dividend of RENE decreases each year by -2.07%.
Dividend Growth(5Y)-2.07%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.88% of the earnings are spent on dividend by RENE. This is a bit on the high side, but may be sustainable.
The Dividend Rate of RENE has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP54.88%
EPS Next 2Y-5.43%
EPS Next 3Y-4.12%
REDES ENERGETICAS NACIONAIS
ELI:RENE (7/26/2024, 7:00:00 PM)
2.345
-0.04 (-1.88%)
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 Cap1.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 8.69 | ||
| Fwd PE | 13.33 | ||
| 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)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 12.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.92% | ||
| PM (TTM) | 12.94% | ||
| GM | 74.43% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.51 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)21.28%
EPS 3Y11.2%
EPS 5Y
EPS Q2Q%
EPS Next Y-10.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.67%
Revenue growth 3Y9.34%
Revenue growth 5Y
Sales 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