Red Eléctrica Corporación, S.A.
Red Eléctrica Corporación, S.A. Fundamental Analysis
Red Eléctrica Corporación, S.A. (RDEIY) shows moderate financial fundamentals with a PE ratio of 23.93, profit margin of 24.65%, and ROE of 6.97%. The company generates $1.5B in annual revenue with weak year-over-year growth of -22.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RDEIY's fundamental strength across five key dimensions:
Efficiency Score
WeakRDEIY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRDEIY trades at attractive valuation levels.
Growth Score
WeakRDEIY faces weak or negative growth trends.
Financial Health Score
ModerateRDEIY shows balanced financial health with some risks.
Profitability Score
WeakRDEIY struggles to sustain strong margins.
Key Financial Metrics
Is RDEIY Expensive or Cheap?
P/E Ratio
RDEIY trades at 23.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RDEIY's PEG of 0.79 indicates potential undervaluation.
Price to Book
The market values Red Eléctrica Corporación, S.A. at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.59 times EBITDA. This is generally considered low.
How Well Does RDEIY Make Money?
Net Profit Margin
For every $100 in sales, Red Eléctrica Corporación, S.A. keeps $24.65 as profit after all expenses.
Operating Margin
Core operations generate 51.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.97 in profit for every $100 of shareholder equity.
ROA
Red Eléctrica Corporación, S.A. generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Red Eléctrica Corporación, S.A. generates strong operating cash flow of $1.07B, reflecting robust business health.
Free Cash Flow
Red Eléctrica Corporación, S.A. generates weak or negative free cash flow of $-223.32M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.21 in free cash annually.
FCF Yield
RDEIY converts -2.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How RDEIY Stacks Against Its Sector Peers
| Metric | RDEIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.93 | 19.51 | Worse (Expensive) |
| ROE | 6.97% | 940.00% | Weak |
| Net Margin | 24.65% | 9081.00% | Weak |
| Debt/Equity | 1.21 | 1.73 | Strong (Low Leverage) |
| Current Ratio | 1.03 | 1.48 | Neutral |
| ROA | 2.40% | -169.00% (disorted) | Weak |
RDEIY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Red Eléctrica Corporación, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-20.59%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-48.46%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-8.58%
Industry Style: Defensive, Dividend, Income
Declining