REDES ENERGETICAS NACIONAIS (RENE.LS)

PTREL0AM0008 - Common Stock

2.33  -0.01 (-0.43%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RENE. RENE was compared to 13 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.



7

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 3.20%, RENE is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
RENE's Return On Equity of 12.33% is fine compared to the rest of the industry. RENE outperforms 69.23% of its industry peers.
RENE has a better Return On Invested Capital (7.98%) than 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RENE is below the industry average of 6.49%.
The 3 year average ROIC (4.39%) for RENE is below the current ROIC(7.98%), indicating increased profibility in the last year.
Industry RankSector 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

The Profit Margin of RENE (12.94%) is better than 100.00% of its industry peers.
RENE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.92%, RENE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
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 92.31% of the companies in the same industry.
RENE's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

1

2. Health

2.1 Basic Checks

RENE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RENE remains at a similar level compared to 1 year ago.
The number of shares outstanding for RENE remains at a similar level compared to 5 years ago.
RENE has a worse debt/assets ratio than last year.

2.2 Solvency

RENE has an Altman-Z score of 0.66. This is a bad value and indicates that RENE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.66, RENE is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
RENE has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RENE (1.06) is better than 92.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF N/A
Altman-Z 0.66
ROIC/WACC1.49
WACC5.34%

2.3 Liquidity

A Current Ratio of 0.52 indicates that RENE may have some problems paying its short term obligations.
With a Current ratio value of 0.52, RENE is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that RENE may have some problems paying its short term obligations.
The Quick ratio of RENE (0.51) is worse than 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.51

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.28% over the past year.
Measured over the past 5 years, RENE shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
Looking at the last year, RENE shows a quite strong growth in Revenue. The Revenue has grown by 15.67% in the last year.
RENE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.39% yearly.
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 very negative growth in Earnings Per Share. The EPS will decrease by -10.87% on average per year.
The Revenue is expected to grow by 0.26% on average over the next years.
EPS Next Y-13%
EPS Next 2Y-8.92%
EPS Next 3Y-6.04%
EPS Next 5Y-10.87%
Revenue Next Year3.51%
Revenue Next 2Y3.18%
Revenue Next 3Y3.18%
Revenue Next 5Y0.26%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.63 indicates a reasonable valuation of RENE.
RENE's Price/Earnings ratio is a bit cheaper when compared to the industry. RENE is cheaper than 61.54% of the companies in the same industry.
RENE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.24.
RENE is valuated correctly with a Price/Forward Earnings ratio of 14.28.
Based on the Price/Forward Earnings ratio, RENE is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 19.93. RENE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 8.63
Fwd PE 14.28

4.2 Price Multiples

Industry RankSector 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 -6.04% in the coming years.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y-8.92%
EPS Next 3Y-6.04%

6

5. Dividend

5.1 Amount

RENE has a Yearly Dividend Yield of 6.64%, which is a nice return.
Compared to an average industry Dividend Yield of 5.00, RENE pays a better dividend. On top of this RENE pays more dividend than 92.31% 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 2.37.
Industry RankSector Rank
Dividend Yield 6.64%

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-8.92%
EPS Next 3Y-6.04%

REDES ENERGETICAS NACIONAIS

ELI:RENE (6/12/2024, 5:29:51 PM)

2.33

-0.01 (-0.43%)

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 Cap1.55B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 6.64%
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)
Max EPS beat(2)
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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)
Avg Revenue beat(2)
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 RankSector Rank
PE 8.63
Fwd PE 14.28
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)1.63
Profitability
Industry RankSector 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 RankSector 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-13%
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