REDES ENERGETICAS NACIONAIS (RENE.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:RENE - PTREL0AM0008 - Common Stock
3.355 EUR
+0.06 (+1.98%)
RENE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Multi-Utilities industry. While RENE belongs to the best of the industry regarding profitability, there are concerns on its financial health. RENE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RENE was profitable.
- RENE had a positive 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
- RENE's Return On Assets of 4.24% is amongst the best of the industry. RENE outperforms 82.35% of its industry peers.
- RENE's Return On Equity of 14.76% is in line compared to the rest of the industry. RENE outperforms 58.82% of its industry peers.
- RENE's Return On Invested Capital of 8.28% is amongst the best of the industry. RENE outperforms 88.24% 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 5.84%.
- The 3 year average ROIC (5.36%) for RENE is below the current ROIC(8.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 14.76% | ||
| ROIC | 8.28% |
ROA(3y)2.39%
ROA(5y)2.2%
ROE(3y)9.02%
ROE(5y)8.34%
ROIC(3y)5.36%
ROIC(5y)4.97%
1.3 Margins
- The Profit Margin of RENE (14.01%) is better than 82.35% of its industry peers.
- RENE's Profit Margin has been stable in the last couple of years.
- RENE has a better Operating Margin (23.04%) than 82.35% of its industry peers.
- In the last couple of years the Operating Margin of RENE has declined.
- Looking at the Gross Margin, with a value of 67.92%, RENE is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- RENE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.04% | ||
| PM (TTM) | 14.01% | ||
| GM | 67.92% |
OM growth 3Y-3.06%
OM growth 5Y-5.7%
PM growth 3Y8.45%
PM growth 5Y-0.44%
GM growth 3Y-2.57%
GM growth 5Y-2.77%
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.
- The number of shares outstanding for RENE remains at a similar level compared to 1 year ago.
- RENE has about the same amout of shares outstanding than it did 5 years ago.
- RENE has about the same debt/assets ratio as last year.
2.2 Solvency
- Based on the Altman-Z score of 0.81, we must say that RENE is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.81, RENE is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
- RENE has a debt to FCF ratio of 11.27. This is a negative value and a sign of low solvency as RENE would need 11.27 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.27, RENE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- RENE has a Debt/Equity ratio of 0.98. This is a neutral value indicating RENE is somewhat dependend on debt financing.
- RENE has a better Debt to Equity ratio (0.98) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 11.27 | ||
| Altman-Z | 0.81 |
ROIC/WACC1.4
WACC5.91%
2.3 Liquidity
- RENE has a Current Ratio of 0.19. 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 has a Current ratio of 0.19. This is amonst the worse of the industry: RENE underperforms 94.12% of its industry peers.
- RENE has a Quick Ratio of 0.19. 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 has a worse Quick ratio (0.19) than 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
- RENE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.84%, which is quite impressive.
- 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.
- The Revenue has grown by 8.93% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)26.84%
EPS 3Y16.26%
EPS 5Y5.29%
EPS Q2Q%15.2%
Revenue 1Y (TTM)8.93%
Revenue growth 3Y7.16%
Revenue growth 5Y5.57%
Sales Q2Q%11.5%
3.2 Future
- The Earnings Per Share is expected to grow by 1.01% on average over the next years.
- Based on estimates for the next years, RENE will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y5.77%
EPS Next 2Y6.82%
EPS Next 3Y6.15%
EPS Next 5Y1.01%
Revenue Next Year8.92%
Revenue Next 2Y6.27%
Revenue Next 3Y4.79%
Revenue Next 5Y2.2%
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.
- 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
- Based on the Price/Earnings ratio of 10.48, the valuation of RENE can be described as reasonable.
- RENE's Price/Earnings ratio is a bit cheaper when compared to the industry. RENE is cheaper than 76.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RENE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 14.78, the valuation of RENE can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as RENE.
- RENE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
- RENE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RENE is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RENE does not grow enough to justify the current Price/Earnings ratio.
- RENE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)1.98
EPS Next 2Y6.82%
EPS Next 3Y6.15%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.77%, RENE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.30, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
- The dividend of RENE decreases each year by -2.07%.
Dividend Growth(5Y)-2.07%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- RENE pays out 18.89% of its income as dividend. This is a sustainable payout ratio.
DP18.89%
EPS Next 2Y6.82%
EPS Next 3Y6.15%
REDES ENERGETICAS NACIONAIS / RENE.LS FAQ
Can you provide the ChartMill fundamental rating for REDES ENERGETICAS NACIONAIS?
ChartMill assigns a fundamental rating of 5 / 10 to RENE.LS.
Can you provide the valuation status for REDES ENERGETICAS NACIONAIS?
ChartMill assigns a valuation rating of 5 / 10 to REDES ENERGETICAS NACIONAIS (RENE.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for REDES ENERGETICAS NACIONAIS?
REDES ENERGETICAS NACIONAIS (RENE.LS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RENE stock?
The Price/Earnings (PE) ratio for REDES ENERGETICAS NACIONAIS (RENE.LS) is 10.48 and the Price/Book (PB) ratio is 1.49.
Can you provide the financial health for RENE stock?
The financial health rating of REDES ENERGETICAS NACIONAIS (RENE.LS) is 3 / 10.