Red Electrica Corporacion (RED) AI Stock Analysis

• Market Cap: €9.87B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.35
• Revenue Growth: -22.76%
• EPS Growth: -46.60%
• Country: ES
• Employees: 1,962
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Electric
• EPS (TTM): 0.25
• Shares Outstanding: 541,080,000
• 10 Day Avg. Volume: 1,439,628
• 30 Day Avg. Volume: 1,300,925
• PEG Ratio: -5.54
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.51
• 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: €20.03
• Price Target Upside: 8.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: €19.00 ▲(2.70%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 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

Red 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 displays solid operational margins and a stable balance sheet, typical for a regulated utility. However, declining revenues and net income, coupled with reduced free cash flow, pose challenges. Continued focus on cost management and revenue enhancement will be 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	2.06B	2.02B	1.95B	1.99B
Gross Profit	1.63B	2.08B	2.04B	1.99B	2.02B
EBITDA	1.28B	1.45B	1.48B	1.53B	1.46B
Net Income	368.44M	689.64M	664.73M	680.63M	621.18M
Balance Sheet
Total Assets	15.09B	14.48B	14.78B	13.98B	12.84B
Cash, Cash Equivalents and Short-Term Investments	923.26M	714.66M	1.55B	1.60B	517.58M
Total Debt	6.40B	5.80B	6.24B	7.32B	6.64B
Total Liabilities	9.83B	8.96B	9.89B	10.30B	9.35B
Stockholders Equity	5.15B	5.41B	4.79B	3.63B	3.44B
Cash Flow
Free Cash Flow	-123.00M	-464.35M	1.03B	1.05B	835.09M
Operating Cash Flow	955.63M	491.90M	1.57B	1.61B	1.38B
Investing Cash Flow	-947.38M	-66.47M	-1.64B	-537.64M	-905.55M
Financing Cash Flow	324.46M	-547.20M	-708.19M	22.32M	-314.67M

Red Electrica Corporacion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.50
• 50DMA: Negative
• 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:RED, the sentiment is Positive. The current price of 18.5 is above the 20-day moving average (MA) of 18.10, above the 50-day MA of 18.28, and above the 200-day MA of 17.24, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:RED.

Red Electrica Corporacion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	€7.03B	7.10	-0.43%	4.06%	6.59%	-20.04%
RED	59 Neutral	€9.87B	26.85	9.44%	1.77%	-22.76%	-46.60%
0EBQ		€3.71B	10.12	-11.89%	4.89%	―	―
0N9G		€28.84B	13.34	26.26%	3.67%	―	―
0NPV		€25.58B	13.25	20.32%	4.51%	―	―
0HIT		€103.99B	20.99	10.55%	0.05%	―	―
5BP		€6.36B	16.95	6.11%	1.98%	―	―

Red Electrica Corporacion Corporate Events

Redeia Corporación Adjusts Dividend Payment Date

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

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

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.