Grenergy Renovables S.A (GRE) AI Stock Analysis

• Market Cap: €2.72B
• Dividend Yield: N/A
• Average Volume (3M): 58.28K
• Price to Earnings (P/E): 32.3
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: ES
• Employees: 625
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.40
• Shares Outstanding: 28,579,733
• 10 Day Avg. Volume: 41,243
• 30 Day Avg. Volume: 58,282
• PEG Ratio: 0.64
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 2.30
• P/FCF Ratio: -4.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €100.00
• Price Target Upside: 0.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.73
• Revenue Forecast (FY): €761.77M

• Rating: 54 Neutral
• Price Target: €112.00 ▲(12.68% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is held back primarily by weak cash conversion and deeply negative free cash flow alongside higher leverage, which increases funding and execution risk despite strong revenue growth. Technicals are supportive with a strong uptrend, but momentum is overbought. Valuation is also on the high side (P/E ~35.8) without a dividend yield to offset risk.

Positive Factors

Revenue Growth & Profitability

Sustained ~30% top-line growth with maintained operating margins indicates scalable project execution and demand for utility-scale solar. Over 2–6 months this supports stronger project pipelines, recurring asset revenues or profitable project sales, underpinning longer-term earnings power.

Integrated value‑chain model

Participation across origination, permitting, EPC and O&M creates multiple durable revenue streams (development fees, EPC margins, asset sales, and recurring O&M). This vertical integration secures project pipeline control and margin capture, reducing reliance on any single revenue source.

Solar + storage and geographic reach

Combining PV and storage across geographies aligns with structural demand for flexible renewables and capacity services. Geographic diversification lowers single‑market execution risk and enables capture of differing regulatory incentives, supporting steadier long‑term cash generation opportunities.

Negative Factors

Weak cash generation

Severely negative free cash flow and a sharp drop in operating cash constrains self-funding of development and construction. Over months this increases reliance on external financing, elevates execution and refinancing risk, and can force asset sales or dilution if trends persist.

High leverage

A debt-to-equity ratio around 3.5x reduces financial flexibility and raises vulnerability to interest rate or project-timing shocks. High leverage increases cost of capital and covenant risk, limiting ability to pursue opportunistic builds or absorb delays without restructuring or asset disposals.

Margin compression / efficiency erosion

Declining gross and net margins while scaling suggests rising costs, adverse project mix, or execution inefficiencies. If margin pressures persist, project returns and retained earnings for growth will diminish, weakening the firm's ability to self-finance and sustain returns long term.

Grenergy Renovables S.A Business Overview & Revenue Model

Company Description

Grenergy Renovables, S.A., together with its subsidiaries, operates as an independent energy producer. The company operates through Development and Construction, Energy, and Services divisions. It designs, develops, constructs, and operates photovoltaic and wind energy projects. The company's activities include promotion and commercialization of renewable energy installations; production of electric energy; management and operation renewable energy installations; and asset management services. It has operations in Chile, Mexico, Peru, Colombia, Argentina, Italy, and Spain. The company was incorporated in 2007 and is based in Madrid, Spain. Grenergy Renovables, S.A. is a subsidiary of Daruan Group Holding, S.L.

How the Company Makes Money

Grenergy Renovables generates revenue primarily through the sale of electricity produced by its renewable energy projects, which includes both solar and wind energy. The company enters into long-term power purchase agreements (PPAs) with utility companies and other clients, ensuring a stable income stream from the sale of electricity at predetermined rates. Additionally, Grenergy earns money through the development and construction of renewable energy projects for third parties, which involves charging fees for their expertise and services. The company may also benefit from government incentives and subsidies aimed at encouraging the growth of renewable energy sources. Strategic partnerships with other energy companies and financial institutions further enhance Grenergy's capabilities and resources, contributing significantly to its overall earnings.

Grenergy Renovables S.A Financial Statement Overview

Summary

Income statement momentum is strong (2025 revenue up ~30% YoY) with solid EBIT/EBITDA margins, but margin compression versus 2023–2024 signals weaker efficiency. The bigger drags are balance-sheet risk (debt-to-equity ~3.5x after rising debt) and very weak cash generation: operating cash flow dropped sharply (~€38M vs ~€351M) and free cash flow is deeply negative (~-€612M), increasing reliance on external funding.

Income Statement

Revenue growth accelerated sharply in 2025 (up ~30% year over year), and operating profitability remains solid with healthy EBIT and EBITDA margins. That said, profitability has become less efficient versus prior years, with gross and net margins compressing meaningfully from 2023–2024 levels, indicating higher costs and/or a less favorable mix as the business scales.

Balance Sheet

The balance sheet is increasingly leveraged: total debt rose materially into 2025 and debt-to-equity moved higher (now ~3.5x), reducing financial flexibility. Equity is still positive and returns on equity improved in 2025 (~21%), but the capital structure looks more risk-prone given the pace of debt build and relatively modest equity base versus liabilities.

Cash Flow

Cash generation is the key weak spot. Operating cash flow fell sharply in 2025 (to ~€38M from ~€351M in 2024) and covers only a small portion of earnings, while free cash flow is deeply negative (about -€612M in 2025) driven by heavy investment needs. The company can be profitable on the income statement while still consuming substantial cash, increasing reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	823.38M	1.07B	531.58M	179.14M	110.58M	82.51M
Gross Profit	208.78M	192.40M	192.04M	144.26M	79.65M	55.05M
EBITDA	192.55M	201.20M	143.97M	105.31M	50.15M	34.92M
Net Income	94.33M	87.00M	59.82M	51.07M	10.30M	16.31M
Balance Sheet
Total Assets	1.93B	2.16B	1.88B	1.27B	886.98M	604.81M
Cash, Cash Equivalents and Short-Term Investments	300.10M	348.60M	375.02M	122.03M	117.64M	76.63M
Total Debt	1.17B	1.46B	1.01B	752.21M	502.73M	333.67M
Total Liabilities	1.54B	1.75B	1.40B	922.61M	642.17M	446.10M
Stockholders Equity	391.87M	415.30M	473.98M	343.97M	245.05M	159.32M
Cash Flow
Free Cash Flow	-354.26M	-612.35M	-298.07M	-333.11M	-151.58M	-184.43M
Operating Cash Flow	328.59M	37.84M	350.72M	33.23M	38.40M	13.73M
Investing Cash Flow	-385.27M	-450.07M	-301.29M	-268.71M	-199.24M	-200.63M
Financing Cash Flow	255.89M	377.39M	219.07M	254.28M	199.74M	235.32M

Grenergy Renovables S.A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 99.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:GRE, the sentiment is Neutral. The current price of 99.4 is below the 20-day moving average (MA) of 103.54, above the 50-day MA of 95.15, and above the 200-day MA of 74.90, indicating a neutral trend. The MACD of 3.89 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:GRE.

Grenergy Renovables S.A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLR	76 Outperform	€2.36B	16.64	26.57%	―	43.90%	123.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ANA	60 Neutral	€11.88B	14.75	18.00%	2.87%	4.87%	339.22%
TRE	59 Neutral	€2.31B	14.76	24.64%	―	41.87%	55.79%
GRE	54 Neutral	€2.72B	32.31	26.86%	―	―	―
ENC	48 Neutral	€573.93M	-10.53	-5.36%	4.84%	-11.51%	-170.43%
SOL	40 Underperform	€305.39M	-0.60	―	―	-65.28%	24.77%