Redeia Corporación (RED) AI Stock Analysis

• Market Cap: €9.01B
• Dividend Yield: 3.88%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.28
• Revenue Growth: -23.15%
• EPS Growth: -39.13%
• Country: ES
• Employees: 1,962
• Sector: Services
• Sector Strength: N/A
• Industry: Regulated Electric
• EPS (TTM): 0.23
• Shares Outstanding: 541,080,000
• 10 Day Avg. Volume: 1,572,480
• 30 Day Avg. Volume: 1,475,781
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €18.57
• Price Target Upside: 11.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: €18.00 ▲(7.85% Upside)

Red Electrica Corporacion's overall stock score is driven by its solid financial performance and stable technical indicators. The company's high P/E ratio suggests potential overvaluation, but the attractive dividend yield provides a positive offset. The absence of earnings call and corporate events data limits further insights.

Redeia Corporación Business Overview & Revenue Model

Company Description

Redeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. Its transmission network comprises approximately 45,019 kilometers; and has 94,221 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and renders space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was incorporated in 1985 and is based in Alcobendas, Spain.

How the Company Makes Money

Redeia generates revenue through several key streams. The primary source of income comes from the regulated activities associated with electricity transmission, where it earns returns on its investments based on the regulatory framework set by the government. Additionally, the company generates income from its telecommunications division, which includes leasing fiber optic networks to other service providers, thereby capitalizing on the growing demand for high-speed internet connectivity. Redeia also engages in partnerships with various energy and telecommunications companies to enhance its service offerings and expand its market reach, further contributing to its revenue. Furthermore, the company invests in innovative technologies and sustainable projects, which can lead to additional funding and revenue opportunities through government incentives and grants.

Redeia Corporación Financial Statement Overview

Summary

Red Electrica Corporacion shows strong operational margins and a stable balance sheet. However, declining revenues, net income, and reduced free cash flow pose financial challenges. Effective cost management and revenue enhancement are critical to maintaining financial health.

Income Statement

Red Electrica Corporacion's income statement shows a decline in total revenue from the previous year, with a significant decrease in net income as well. The gross profit margin is strong, indicating effective cost control. However, the net profit margin has decreased, reflecting reduced profitability. The EBIT and EBITDA margins remain healthy, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The company's balance sheet indicates a solid equity base with a debt-to-equity ratio that is manageable for the industry. There is a stable return on equity, but the equity ratio is moderate, suggesting some reliance on debt financing. Overall, the balance sheet reflects a stable financial position with adequate resources to cover liabilities.

Cash Flow

Cash flow analysis reveals a decline in free cash flow due to increased capital expenditures. The operating cash flow is positive but has decreased from the prior year, impacting the free cash flow to net income ratio. This indicates potential constraints in cash availability for investments and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	1.59B	2.06B	2.02B	1.95B	1.99B
Gross Profit	1.55B	1.63B	2.08B	2.04B	1.99B	2.02B
EBITDA	1.22B	1.28B	1.45B	1.48B	1.53B	1.46B
Net Income	368.58M	368.44M	689.64M	664.73M	680.63M	621.18M
Balance Sheet
Total Assets	15.37B	15.09B	14.48B	14.78B	13.98B	12.84B
Cash, Cash Equivalents and Short-Term Investments	613.78M	923.26M	714.66M	1.55B	1.60B	517.58M
Total Debt	6.20B	6.40B	5.80B	6.24B	7.32B	6.64B
Total Liabilities	10.16B	9.83B	8.96B	9.89B	10.30B	9.35B
Stockholders Equity	5.10B	5.15B	5.41B	4.79B	3.63B	3.44B
Cash Flow
Free Cash Flow	818.27M	-123.00M	-464.35M	1.03B	1.05B	835.09M
Operating Cash Flow	1.47B	955.63M	491.90M	1.57B	1.61B	1.38B
Investing Cash Flow	-581.57M	-947.38M	-66.47M	-1.64B	-537.64M	-905.55M
Financing Cash Flow	-207.97M	324.46M	-547.20M	-708.19M	22.32M	-314.67M

Redeia Corporación Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.69
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:RED, the sentiment is Neutral. The current price of 16.69 is above the 20-day moving average (MA) of 16.57, above the 50-day MA of 16.53, and below the 200-day MA of 17.04, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:RED.

Redeia Corporación Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANE	―	€7.94B	10.62	13.06%	1.78%	2.05%	307.60%
NTGY	―	€23.16B	12.69	22.84%	6.37%	2.66%	1.26%
ELE	―	€30.99B	14.54	26.86%	4.37%	-4.53%	221.40%
IBE	―	€113.10B	21.15	10.92%	3.00%	-1.89%	-21.48%
RED	―	€9.01B	24.50	10.14%	3.88%	-23.15%	-39.13%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ENG	―	€3.71B	39.42	3.85%	7.00%	5.35%	―