Grenergy Renovables S.A (GRE) AI Stock Analysis

• Market Cap: €2.34B
• Dividend Yield: N/A
• Average Volume (3M): 58.28K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: ES
• Employees: 625
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 28,579,733
• 10 Day Avg. Volume: 41,243
• 30 Day Avg. Volume: 58,282
• PEG Ratio: 0.68
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.74
• P/FCF Ratio: -3.11
• 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: €94.00
• Price Target Upside: 11.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €84.00 ▼(-0.47% Downside)

Grenergy Renovables S.A. benefits from strong technical momentum and solid financial performance, despite some leverage and cash flow concerns. The stock's valuation is reasonable, though the lack of a dividend may deter some investors. Continued operational efficiency and cash management will be key to sustaining growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for renewable energy projects, supporting long-term business expansion.

Operational Efficiency

Healthy margins reflect effective cost management and operational efficiency, which are crucial for sustaining profitability in the competitive renewable energy sector.

Market Position

Comprehensive involvement in the renewable energy lifecycle strengthens market position and offers competitive advantages through diversified revenue streams.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in new projects or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow may constrain the company's ability to fund operations and growth initiatives internally, necessitating external financing which could increase financial risk.

Cash Flow Management

Challenges in converting net income to free cash flow suggest inefficiencies in cash management, which could impact liquidity and investment capacity over the 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

Grenergy Renovables S.A. shows strong revenue and profit growth, with robust margins and operational efficiency. However, high leverage and negative free cash flow present potential risks. Continued focus on improving cash flow and managing debt will be crucial for sustainable growth.

Income Statement

Grenergy Renovables S.A. has demonstrated strong revenue growth from 2023 to 2024 with a significant increase in total revenue. The gross profit margin is robust, indicating effective cost management. EBIT and EBITDA margins are healthy, highlighting operational efficiency. Net profit margin shows improvement, reflecting rising profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, suggesting potential leverage risk. However, return on equity is commendable, indicating effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced capital structure.

Cash Flow

While free cash flow remains negative, there is a notable improvement in operating cash flow relative to net income, suggesting better cash management. However, the free cash flow to net income ratio is concerning, indicating ongoing challenges in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	823.38M	531.58M	179.14M	110.58M	82.51M	73.39M
Gross Profit	208.78M	192.04M	144.26M	79.65M	55.05M	33.96M
EBITDA	192.55M	143.97M	105.31M	50.15M	34.92M	19.19M
Net Income	94.33M	59.82M	51.07M	10.30M	16.31M	15.23M
Balance Sheet
Total Assets	1.93B	1.88B	1.27B	886.98M	604.81M	258.20M
Cash, Cash Equivalents and Short-Term Investments	300.10M	375.02M	122.03M	117.64M	76.63M	27.03M
Total Debt	1.17B	1.01B	752.21M	502.73M	333.67M	155.46M
Total Liabilities	1.54B	1.40B	922.61M	642.17M	446.10M	209.36M
Stockholders Equity	391.87M	473.98M	343.97M	245.05M	159.32M	49.20M
Cash Flow
Free Cash Flow	-354.26M	-298.07M	-333.11M	-151.58M	-184.43M	-88.65M
Operating Cash Flow	328.59M	350.72M	33.23M	38.40M	13.73M	-8.33M
Investing Cash Flow	-385.27M	-301.29M	-268.71M	-199.24M	-200.63M	-79.66M
Financing Cash Flow	255.89M	219.07M	254.28M	199.74M	235.32M	75.22M

Grenergy Renovables S.A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 84.4 is above the 20-day moving average (MA) of 80.50, above the 50-day MA of 76.40, and above the 200-day MA of 64.90, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€2.23B	12.72	26.57%	―	43.90%	123.87%
GRE	74 Outperform	€2.34B	24.78	26.86%	―	―	―
ANA	69 Neutral	€10.46B	12.53	18.00%	2.87%	4.87%	339.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRE	58 Neutral	€2.27B	17.35	24.64%	―	41.87%	55.79%
ENC	49 Neutral	€567.14M	-18.20	-5.36%	4.84%	-11.51%	-170.43%
SOL	41 Neutral	€514.93M	-1.01	―	―	-65.28%	24.77%