Morningstar

Redeia Corporacion SA RED

Morningstar Rating
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Stock XMAD Rating as of
€17.09 −0.06 (0.35%)
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As of Delayed Price Closed

Company Report

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European Utilities Rallied in Q3 on Falling Interest Rates; We See Further Upside Potential

Tancrede Fulop

While wholesale power prices stabilized, government bonds’ yields fell on weak economic indicators and lower inflation in the US and Europe. Second-quarter results were boosted by very favorable hydro conditions that led to some guidance upgrades. This goldilocks scenario bolstered a rally in European utilities, enabling them to massively outperform the market and recover much of their earlier underperformance.

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Price vs Fair Value

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RED is trading at a 597% premium.
Price
€17.09
Fair Value
€79.50
Uncertainty
Low
1-Star Price
€27.81
5-Star Price
€84.50
Economic Moat
Gzr
Capital Allocation
Rxpvkvwwf

Bulls Say, Bears Say

Bulls

Investment opportunities in Spain are significant in the 2020s, which should boost earnings.

Bears

The increasing weight of liberalized activities reduces earnings visibility.

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Trading Information

Previous Close Price
€17.15
Day Range
€16.84–17.29
52-Week Range
€14.36–17.70
Bid/Ask
— / —
Market Cap
€9.23 Bil
Volume/Avg
777,672 / 871,807

Key Statistics

Price/Earnings (Normalized)
12.10
Price/Sales
4.75
Dividend Yield (Trailing)
5.85%
Dividend Yield (Forward)
5.85%
Total Yield
5.85%

Company Profile

Redeia owns and operates the Spanish electric transmission system. The company has acquired almost all of the nation's power grid, which other owners were forced to sell to it by government decree. Its activities are regulated by the National Energy Commission, which answers to the Spanish legislature. Redeia also operates a small fibre-optics network in Spain and has a growing Latin American infrastructure business. The group significantly increased its exposure to telecommunications by acquiring Spanish communications satellite operator Hispasat from Abertis in 2019.
Sector
Utilities
Industry
Utilities - Regulated Electric
Stock Style Box
Mid Core
Total Number of Employees
2,464
Website
https://www.ree.es

Competitors

Valuation

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Metric
RED
SSE
NGG
Price/Earnings (Normalized)
 12.1011.2012.60
Price/Book Value
 1.762.181.43
Price/Sales
 4.751.922.15
Price/Cash Flow
 7.607.067.79
Price/Earnings
RED
SSE
NGG

Financial Strength

Metric
RED
SSE
NGG
Quick Ratio
 0.780.760.64
Current Ratio
 0.811.100.91
Interest Coverage
 6.568.212.63
Quick Ratio
RED
SSE
NGG

Profitability

Metric
RED
SSE
NGG
Return on Assets (Normalized)
 4.29%6.37%3.03%
Return on Equity (Normalized)
 11.82%20.08%9.72%
Return on Invested Capital (Normalized)
 7.94%9.01%5.36%
Return on Assets
RED
SSE
NGG

Utilities - Regulated Electric Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NextEra Energy Inc
NEE
HmnkrzckzHwgtnw$172.3 Bil
 Southern Co
SO
NmpmztwkbPbjzfyc$98.9 Bil
 Duke Energy Corp
DUK
LxzgywntScpfz$88.1 Bil
 National Grid PLC ADR
NGG
CjjwjyxDrwwn$64.0 Bil
 American Electric Power Co Inc
AEP
YrdzknlCgkmtds$53.4 Bil
 PG&E Corp
PCG
YzzkmhgPxtgm$51.5 Bil
 Dominion Energy Inc
D
FvsnmktQzpcm$48.9 Bil
 Public Service Enterprise Group Inc
PEG
HpddmyhSvtvxd$45.8 Bil
 Exelon Corp
EXC
BmhvdxgRkvwfb$40.2 Bil
 Consolidated Edison Inc
ED
LkyngmshmGnyl$35.7 Bil

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