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Red Electrica Corporacion (ES:RED)
:RED

Red Electrica Corporacion (RED) AI Stock Analysis

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Red Electrica Corporacion

(LSE:RED)

Rating:59Neutral
Price Target:
€19.00
▲(5.56%Upside)
Red Electrica Corporacion's overall score reflects its stable financial position and operational efficiency, which are typical for its industry. However, challenges such as declining revenues and constrained free cash flow weigh on the score. The stock's technical indicators suggest caution with potential resistance ahead. While the valuation appears high, the attractive dividend yield provides some compensation.

Red Electrica Corporacion (RED) vs. iShares MSCI Spain ETF (EWP)

Red Electrica Corporacion Business Overview & Revenue Model

Company DescriptionRed Electrica Corporacion, S.A., commonly known as Red Electrica, is a Spanish corporation specializing in the transmission and operation of electricity systems. It plays a crucial role in the electricity supply chain by managing the high-voltage transmission grid in Spain. As the sole transmission agent and system operator, Red Electrica ensures the continuity and security of the electricity supply, overseeing the coordination of the country's electricity system and its integration with international grids.
How the Company Makes MoneyRed Electrica makes money primarily through its monopoly on electricity transmission in Spain. Its revenue model is based on regulated income, which is determined by the Spanish government. The company earns revenue by charging fees for the use of its transmission infrastructure, providing system operation services, and ensuring the reliability and security of the national electricity grid. Additionally, Red Electrica's international operations, which include electricity transmission activities outside Spain, contribute to its revenue streams. Strategic partnerships and investments in telecommunications infrastructure and renewable energy initiatives further support its earnings.

Red Electrica Corporacion Financial Statement Overview

Summary
Red Electrica Corporacion exhibits solid operational margins and a stable balance sheet, typical for a regulated utility. However, challenges arise from declining revenues and net income, coupled with reduced free cash flow, which indicate potential constraints for future investments and shareholder returns.
Income Statement
65
Positive
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
70
Positive
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
55
Neutral
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.59B2.06B2.02B1.95B1.99B
Gross Profit
1.63B2.08B2.04B1.99B2.02B
EBIT
761.36M989.67M961.55K991.97M929.01M
EBITDA
1.28B1.45B1.48B1.53B1.46B
Net Income Common Stockholders
368.44M689.64M664.73M680.63M621.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
923.26M714.66M1.55B1.60B517.58M
Total Assets
15.09B14.48B14.78B13.98B12.84B
Total Debt
6.40B5.80B6.24B7.32B6.64B
Net Debt
5.51B5.12B5.44B5.74B6.16B
Total Liabilities
9.83B8.96B9.89B10.30B9.35B
Stockholders Equity
5.15B5.41B4.79B3.63B3.44B
Cash FlowFree Cash Flow
-123.00M-464.35M1.03B1.05B835.09M
Operating Cash Flow
955.63M491.90M1.57B1.61B1.38B
Investing Cash Flow
-947.38M-66.47M-1.64B-537.64M-905.55M
Financing Cash Flow
324.46M-547.20M-708.19M22.32M-314.67M

Red Electrica Corporacion Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.00
Price Trends
50DMA
18.38
Negative
100DMA
17.55
Positive
200DMA
17.15
Positive
Market Momentum
MACD
-0.03
Positive
RSI
47.20
Neutral
STOCH
27.11
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 18 is below the 20-day moving average (MA) of 18.17, below the 50-day MA of 18.38, and above the 200-day MA of 17.15, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:RED.

Red Electrica Corporacion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESELE
81
Outperform
€28.51B13.0826.26%2.99%-8.09%395.09%
ESIBE
74
Outperform
€101.28B20.3910.55%2.95%-3.50%-20.24%
73
Outperform
€24.97B12.9820.32%4.33%-14.81%-4.27%
ESANE
73
Outperform
€6.20B17.346.11%2.05%-14.07%-31.00%
64
Neutral
$8.61B10.334.70%4.36%4.14%-13.05%
ESRED
59
Neutral
€9.70B26.389.44%4.17%-22.76%-46.60%
ESENG
58
Neutral
€3.70B10.27-11.89%8.25%-1.54%-184.82%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:RED
Red Electrica Corporacion
18.14
1.91
11.77%
ES:ENG
Enagas SA
14.10
0.53
3.91%
ES:IBE
Iberdrola
15.93
4.05
34.08%
ES:ELE
Endesa SA
27.01
9.06
50.43%
ES:NTGY
Naturgy Energy Group, S.A.
25.88
2.52
10.80%
ES:ANE
Corporacion Acciona Energias Renovables SA
19.94
-1.26
-5.96%

Red Electrica Corporacion Corporate Events

Redeia Corporación Adjusts Dividend Payment Date
May 27, 2025

Redeia Corporación, S.A. has announced a modification to the payment date of its complementary dividend for the 2024 financial year. The new payment date is set for July 8, 2025, with the rest of the terms remaining unchanged, which may impact shareholders’ financial planning.

The most recent analyst rating on (ES:RED) stock is a Sell with a EUR17.00 price target. To see the full list of analyst forecasts on Red Electrica Corporacion stock, see the ES:RED Stock Forecast page.

Redeia Corporación Announces Leadership Change in Key Committee
May 27, 2025

Redeia Corporación, S.A. has announced a change in leadership within its Appointments and Remuneration Committee. Ms. Guadalupe de la Mata Muñoz has been appointed as the Chairwoman, replacing Ms. Socorro Fernández Larrea following her resignation. This change is part of the company’s ongoing governance and leadership strategy, potentially impacting its operational and strategic direction.

The most recent analyst rating on (ES:RED) stock is a Sell with a EUR17.00 price target. To see the full list of analyst forecasts on Red Electrica Corporacion stock, see the ES:RED Stock Forecast page.

Redeia Corporación to Hold Online Shareholders’ Meeting
May 27, 2025

Redeia Corporación, S.A. has announced that its Ordinary General Shareholders’ Meeting will be held exclusively online on June 30, 2025. The meeting will cover the approval of annual accounts, management reports, dividend distribution, and the re-election and appointment of directors, among other matters. This online format aims to ensure equal shareholder participation and efficient resource allocation.

The most recent analyst rating on (ES:RED) stock is a Sell with a EUR17.00 price target. To see the full list of analyst forecasts on Red Electrica Corporacion stock, see the ES:RED Stock Forecast page.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.