REDES ENERGETICAS NACIONAIS (RENE.LS)
PTREL0AM0008 - Common Stock
Taking everything into account, RENE scores 4 out of 10 in our fundamental rating. RENE was compared to 12 industry peers in the Multi-Utilities industry. While RENE has a great profitability rating, there are quite some concerns on its financial health. RENE has a decent growth rate and is not valued too expensively.
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 (3.08%) is better than 66.67% of its industry peers.
The Return On Equity of RENE (11.80%) is comparable to the rest of the industry.
The Return On Invested Capital of RENE (7.61%) is better than 83.33% 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 6.48%.
The 3 year average ROIC (4.39%) for RENE is below the current ROIC(7.61%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
RENE's Profit Margin of 11.91% is amongst the best of the industry. RENE outperforms 100.00% of its industry peers.
RENE's Profit Margin has been stable in the last couple of years.
RENE has a better Operating Margin (26.89%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of RENE has declined.
The Gross Margin of RENE (73.22%) is better than 91.67% of its industry peers.
RENE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RENE is still creating some value.
The number of shares outstanding for RENE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RENE has about the same amount of shares outstanding.
RENE has a worse debt/assets ratio than last year.
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.
RENE has a Altman-Z score of 0.66. This is amonst the worse of the industry: RENE underperforms 91.67% 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC1.47
WACC5.16%
2.3 Liquidity
A Current Ratio of 0.46 indicates that RENE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, RENE is doing worse than 91.67% 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 Quick ratio of 0.46. This is amonst the worse of the industry: RENE underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.40% 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%.
RENE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.39% yearly.
EPS 1Y (TTM)28.4%
EPS 3Y11.2%
EPS 5Y5.29%
EPS Q2Q%139.43%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Sales Q2Q%202.82%
3.2 Future
The Earnings Per Share is expected to decrease by -1.22% on average over the next years.
RENE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y-8.89%
EPS Next 2Y-3.84%
EPS Next 3Y-4.12%
EPS Next 5Y-1.22%
Revenue Next Year6.64%
Revenue Next 2Y4.81%
Revenue Next 3Y3.01%
Revenue Next 5Y2.61%
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 7.00, the valuation of RENE can be described as very cheap.
Based on the Price/Earnings ratio, RENE is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of RENE to the average of the S&P500 Index (27.54), we can say RENE is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.31, RENE is valued correctly.
Based on the Price/Forward Earnings ratio, RENE is valued more expensive than 91.67% of the companies in the same industry.
RENE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 12.31 |
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)1.32
EPS Next 2Y-3.84%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.89%, RENE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.15, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
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
RENE pays out 59.49% 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.
DP59.49%
EPS Next 2Y-3.84%
EPS Next 3Y-4.12%
REDES ENERGETICAS NACIONAIS
ELI:RENE (12/24/2024, 7:00:00 PM)
2.24
-0.01 (-0.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners26.38%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.49B
Analysts74.29
Price Target2.81 (25.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
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%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 12.31 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | 11.03 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY14.29%
EPS(NY)0.18
Fwd EY8.12%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)0.2
OCFY9.06%
SpS2.16
BVpS2.18
TBVpS-4
PEG (NY)N/A
PEG (5Y)1.32
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.66 |
F-Score4
WACC5.16%
ROIC/WACC1.47
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)28.4%
EPS 3Y11.2%
EPS 5Y5.29%
EPS Q2Q%139.43%
EPS Next Y-8.89%
EPS Next 2Y-3.84%
EPS Next 3Y-4.12%
EPS Next 5Y-1.22%
Revenue 1Y (TTM)41.53%
Revenue growth 3Y9.34%
Revenue growth 5Y6.39%
Sales Q2Q%202.82%
Revenue Next Year6.64%
Revenue Next 2Y4.81%
Revenue Next 3Y3.01%
Revenue Next 5Y2.61%
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