REN - Redes Energéticas Nacionais, SGPS, S.A.
REN - Redes Energéticas Nacionais, SGPS, S.A. Fundamental Analysis
REN - Redes Energéticas Nacionais, SGPS, S.A. (RENE.LS) shows moderate financial fundamentals with a PE ratio of 16.06, profit margin of 14.99%, and ROE of 10.52%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 3.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RENE.LS's fundamental strength across five key dimensions:
Efficiency Score
WeakRENE.LS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRENE.LS trades at attractive valuation levels.
Growth Score
WeakRENE.LS faces weak or negative growth trends.
Financial Health Score
WeakRENE.LS carries high financial risk with limited liquidity.
Profitability Score
WeakRENE.LS struggles to sustain strong margins.
Key Financial Metrics
Is RENE.LS Expensive or Cheap?
P/E Ratio
RENE.LS trades at 16.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RENE.LS's PEG of -4.18 indicates potential undervaluation.
Price to Book
The market values REN - Redes Energéticas Nacionais, SGPS, S.A. at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.07 times EBITDA. This is generally considered low.
How Well Does RENE.LS Make Money?
Net Profit Margin
For every $100 in sales, REN - Redes Energéticas Nacionais, SGPS, S.A. keeps $14.99 as profit after all expenses.
Operating Margin
Core operations generate 27.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.52 in profit for every $100 of shareholder equity.
ROA
REN - Redes Energéticas Nacionais, SGPS, S.A. generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
REN - Redes Energéticas Nacionais, SGPS, S.A. generates strong operating cash flow of $536.70M, reflecting robust business health.
Free Cash Flow
REN - Redes Energéticas Nacionais, SGPS, S.A. generates strong free cash flow of $315.78M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.48 in free cash annually.
FCF Yield
RENE.LS converts 12.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How RENE.LS Stacks Against Its Sector Peers
| Metric | RENE.LS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.06 | 20.35 | Better (Cheaper) |
| ROE | 10.52% | 922.00% | Weak |
| Net Margin | 14.99% | 765.00% | Weak |
| Debt/Equity | 1.66 | 1.50 | Neutral |
| Current Ratio | 0.24 | 1.44 | Weak Liquidity |
| ROA | 2.97% | -5800.00% (disorted) | Weak |
RENE.LS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews REN - Redes Energéticas Nacionais, SGPS, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.56%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
28.27%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
80.34%
Industry Style: Defensive, Dividend, Income
High Growth