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REDES ENERGETICAS NACIONAIS (RENE.LS) Stock Fundamental Analysis

ELI:RENE - Euronext Lisbon - PTREL0AM0008 - Common Stock - Currency: EUR

2.64  +0.14 (+5.6%)

Fundamental Rating

4

RENE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

RENE had positive earnings in the past year.
RENE had a positive operating cash flow in the past year.
Each year in the past 5 years RENE has been profitable.
Of the past 5 years RENE 4 years had a positive operating cash flow.
RENE.LS Yearly Net Income VS EBIT VS OCF VS FCFRENE.LS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M -600M

1.2 Ratios

RENE has a Return On Assets (3.08%) which is in line with its industry peers.
RENE's Return On Equity of 11.80% is in line compared to the rest of the industry. RENE outperforms 46.15% of its industry peers.
RENE's Return On Invested Capital of 7.61% is amongst the best of the industry. RENE outperforms 84.62% of its industry peers.
RENE had an Average Return On Invested Capital over the past 3 years of 4.39%. This is below the industry average of 6.72%.
The last Return On Invested Capital (7.61%) for RENE is above the 3 year average (4.39%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.08%
ROE 11.8%
ROIC 7.61%
ROA(3y)2.02%
ROA(5y)2.07%
ROE(3y)8.04%
ROE(5y)8.02%
ROIC(3y)4.39%
ROIC(5y)4.37%
RENE.LS Yearly ROA, ROE, ROICRENE.LS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

1.3 Margins

RENE has a better Profit Margin (11.91%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of RENE has remained more or less at the same level.
Looking at the Operating Margin, with a value of 26.89%, RENE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
RENE's Operating Margin has declined in the last couple of years.
RENE's Gross Margin of 73.22% is amongst the best of the industry. RENE outperforms 92.31% of its industry peers.
In the last couple of years the Gross Margin of RENE has declined.
Industry RankSector Rank
OM 26.89%
PM (TTM) 11.91%
GM 73.22%
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%
RENE.LS Yearly Profit, Operating, Gross MarginsRENE.LS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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1

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.
Compared to 1 year ago, RENE has about the same amount of shares outstanding.
The number of shares outstanding for RENE remains at a similar level compared to 5 years ago.
The debt/assets ratio for RENE is higher compared to a year ago.
RENE.LS Yearly Shares OutstandingRENE.LS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
RENE.LS Yearly Total Debt VS Total AssetsRENE.LS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

RENE has an Altman-Z score of 0.70. This is a bad value and indicates that RENE is not financially healthy and even has some risk of bankruptcy.
RENE's Altman-Z score of 0.70 is on the low side compared to the rest of the industry. RENE is outperformed by 92.31% of its industry peers.
RENE has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RENE (1.19) is better than 76.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC1.41
WACC5.38%
RENE.LS Yearly LT Debt VS Equity VS FCFRENE.LS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

RENE has a Current Ratio of 0.46. 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 0.46, RENE is doing worse than 92.31% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that RENE may have some problems paying its short term obligations.
RENE has a worse Quick ratio (0.46) than 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.46
RENE.LS Yearly Current Assets VS Current LiabilitesRENE.LS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.42% over the past year.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, RENE shows a very strong growth in Revenue. The Revenue has grown by 41.53%.
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)28.42%
EPS 3Y11.2%
EPS 5Y5.29%
EPS Q2Q%139.52%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Sales Q2Q%202.82%

3.2 Future

RENE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.22% yearly.
Based on estimates for the next years, RENE will show a small growth in Revenue. The Revenue will grow by 2.89% on average per year.
EPS Next Y-9.78%
EPS Next 2Y-4.06%
EPS Next 3Y-6.04%
EPS Next 5Y-1.22%
Revenue Next Year4.48%
Revenue Next 2Y3.79%
Revenue Next 3Y3.79%
Revenue Next 5Y2.89%

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.
RENE.LS Yearly Revenue VS EstimatesRENE.LS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 200M 400M 600M 800M 1B
RENE.LS Yearly EPS VS EstimatesRENE.LS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0.05 0.1 0.15 0.2

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.25 indicates a reasonable valuation of RENE.
The rest of the industry has a similar Price/Earnings ratio as RENE.
The average S&P500 Price/Earnings ratio is at 29.35. RENE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.58 indicates a correct valuation of RENE.
Based on the Price/Forward Earnings ratio, RENE is valued expensively inside the industry as 92.31% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RENE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 8.25
Fwd PE 14.58
RENE.LS Price Earnings VS Forward Price EarningsRENE.LS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RENE.LS Per share dataRENE.LS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

RENE has a very decent profitability rating, which may justify a higher PE ratio.
RENE's earnings are expected to decrease with -6.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y-4.06%
EPS Next 3Y-6.04%

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6

5. Dividend

5.1 Amount

RENE has a Yearly Dividend Yield of 6.16%, which is a nice return.
Compared to an average industry Dividend Yield of 5.81, RENE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, RENE pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.16%

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
RENE.LS Yearly Dividends per shareRENE.LS Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.05 0.1 0.15 0.2

5.3 Sustainability

59.49% 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.
DP59.49%
EPS Next 2Y-4.06%
EPS Next 3Y-6.04%
RENE.LS Yearly Income VS Free CF VS DividendRENE.LS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M
RENE.LS Dividend Payout.RENE.LS Dividend Payout, showing the Payout Ratio.RENE.LS Dividend Payout.PayoutRetained Earnings

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REDES ENERGETICAS NACIONAIS

ELI:RENE (3/7/2025, 7:00:00 PM)

2.64

+0.14 (+5.6%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)03-06 2025-03-06/amc
Earnings (Next)05-08 2025-05-08
Inst Owners25.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.76B
Analysts78.33
Price Target2.83 (7.2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.16%
Yearly Dividend0.15
Dividend Growth(5Y)-2.07%
DP59.49%
Div Incr Years0
Div Non Decr Years0
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)0%
PT rev (3m)0.78%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.03%
Valuation
Industry RankSector Rank
PE 8.25
Fwd PE 14.58
P/S 1.22
P/FCF N/A
P/OCF 13.01
P/B 1.21
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.32
EY12.12%
EPS(NY)0.18
Fwd EY6.86%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)0.2
OCFY7.69%
SpS2.16
BVpS2.18
TBVpS-4
PEG (NY)N/A
PEG (5Y)1.56
Profitability
Industry RankSector Rank
ROA 3.08%
ROE 11.8%
ROCE 9.96%
ROIC 7.61%
ROICexc 7.75%
ROICexgc N/A
OM 26.89%
PM (TTM) 11.91%
GM 73.22%
FCFM N/A
ROA(3y)2.02%
ROA(5y)2.07%
ROE(3y)8.04%
ROE(5y)8.02%
ROIC(3y)4.39%
ROIC(5y)4.37%
ROICexc(3y)5.04%
ROICexc(5y)4.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.75%
ROCE(5y)5.72%
ROICexcg growth 3Y10.05%
ROICexcg growth 5Y6.06%
ROICexc growth 3Y5.48%
ROICexc growth 5Y1.12%
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%
F-Score4
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 1.19
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 20.52%
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.46
Quick Ratio 0.46
Altman-Z 0.7
F-Score4
WACC5.38%
ROIC/WACC1.41
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)24.81%
Cap/Sales(5y)23.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.42%
EPS 3Y11.2%
EPS 5Y5.29%
EPS Q2Q%139.52%
EPS Next Y-9.78%
EPS Next 2Y-4.06%
EPS Next 3Y-6.04%
EPS Next 5Y-1.22%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Sales Q2Q%202.82%
Revenue Next Year4.48%
Revenue Next 2Y3.79%
Revenue Next 3Y3.79%
Revenue Next 5Y2.89%
EBIT growth 1Y-2.83%
EBIT growth 3Y5.31%
EBIT growth 5Y0.69%
EBIT Next Year94.1%
EBIT Next 3Y26.53%
EBIT Next 5Y16.34%
FCF growth 1Y-132.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.18%
OCF growth 3YN/A
OCF growth 5YN/A