Repsol (REP) AI Stock Analysis

• Market Cap: €17.29B
• Dividend Yield: 6.21%
• Average Volume (3M): 3.97M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.65
• Revenue Growth: -8.73%
• EPS Growth: -76.59%
• Country: ES
• Employees: 25,136
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.56
• Shares Outstanding: 1,128,372,300
• 10 Day Avg. Volume: 4,191,026
• 30 Day Avg. Volume: 3,972,537
• 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: €15.64
• Price Target Upside: -0.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: €16.00 ▲(1.91% Upside)

Repsol's overall score reflects a stable financial position and strong cash flow generation, offset by challenges in profitability and a high P/E ratio. The technical indicators suggest a neutral market sentiment, while the attractive dividend yield provides a positive aspect for income-focused investors.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances Repsol's ability to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting long-term financial health.

Balance Sheet Stability

A stable balance sheet with a manageable debt-to-equity ratio provides Repsol with financial flexibility to navigate market fluctuations and invest in strategic initiatives.

Renewable Energy Investment

Investing in renewable energy aligns with global sustainability trends and diversifies Repsol's revenue streams, positioning the company for future growth in a transitioning energy market.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can hinder Repsol's ability to expand its market share and invest in new projects, potentially impacting long-term competitiveness and profitability.

Profitability Challenges

Low profitability margins indicate operational inefficiencies and may limit Repsol's capacity to reinvest in business growth, affecting long-term financial performance.

Decreased Return on Equity

A decrease in return on equity suggests that Repsol is generating less profit from its equity base, which could affect investor confidence and the company's ability to attract new capital.

Repsol Business Overview & Revenue Model

Company Description

Repsol, S.A. operates as an integrated energy company worldwide. Its Exploration and Production segment engages in the exploration, development, and production of crude oil and natural gas reserves. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading and transportation of crude oil and oil products; and the sale, transportation, and regasification of natural gas and liquefied natural gas (LNG). Its Commercial and Renewables segment engages in the low carbon power generation and renewable sources; sale of gas and power; mobility and sale of oil products; and liquified petroleum gas activities. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; refines and markets hydrocarbons; offers human resource services; distributes and supplies electricity; and develops new energy source, solar, and wind projects, as well as produces and markets chemical products, lubricants, and biofuels. Further, it is involved in fuel and special products marketing, research, trading and transport, insurance and reinsurance, technology development, and financing activities; develops nanoparticles and nanofibers for material, energy, and biomedicine applications; provides blockchain technology for retail, energy, and automotive sectors; produces synthetic oil cloths; invests in liquefaction plant project; and offers water treatment technology management services. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

How the Company Makes Money

Repsol generates revenue primarily through its upstream and downstream operations. In the upstream sector, the company earns money by extracting and selling crude oil and natural gas, leveraging its exploration and production assets in various regions, including Europe, North America, and Latin America. The downstream segment contributes significantly to its revenue through the refining of crude oil into valuable products and the distribution of these products via retail and wholesale channels. Additionally, Repsol has been investing in renewable energy, which provides an emerging revenue stream as the company transitions towards more sustainable energy solutions. Strategic partnerships and joint ventures, particularly in exploration and renewable projects, further enhance its revenue potential and market reach.

Repsol Financial Statement Overview

Summary

Repsol demonstrates resilience with a stable balance sheet and strong cash flow generation, despite pressure on revenue and profit margins. Continued focus on operational efficiency is crucial for improving profitability.

Income Statement

Repsol's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains a positive gross profit margin of 17.6%. However, the net profit margin is relatively low at 1.1%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have also decreased compared to previous years, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.61, which is manageable for the industry. The return on equity has decreased to 2.9% in the TTM period, indicating reduced profitability from shareholders' equity. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Repsol's cash flow statement shows a strong recovery in free cash flow growth, with a significant increase of 485.6% in the TTM period. The operating cash flow to net income ratio is 0.29, indicating adequate cash generation relative to net income. The free cash flow to net income ratio of 0.24 suggests a reasonable conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.83B	57.12B	58.95B	69.29B	49.74B	33.28B
Gross Profit	12.12B	7.75B	9.47B	16.11B	10.10B	7.01B
EBITDA	4.30B	5.61B	7.22B	9.93B	6.44B	-557.00M
Net Income	733.00M	1.76B	3.17B	4.25B	2.50B	-3.29B
Balance Sheet
Total Assets	59.06B	63.19B	61.63B	59.96B	56.25B	49.30B
Cash, Cash Equivalents and Short-Term Investments	6.51B	6.43B	8.87B	9.01B	7.84B	5.51B
Total Debt	14.49B	12.19B	10.56B	13.36B	14.49B	15.56B
Total Liabilities	32.71B	34.09B	32.56B	33.99B	33.46B	28.76B
Stockholders Equity	23.83B	26.49B	26.20B	25.29B	22.41B	20.30B
Cash Flow
Free Cash Flow	1.22B	240.00M	2.22B	4.30B	2.77B	852.00M
Operating Cash Flow	5.20B	4.96B	6.51B	7.83B	4.68B	2.74B
Investing Cash Flow	-2.22B	-2.69B	-5.85B	-4.10B	-2.93B	222.00M
Financing Cash Flow	-2.89B	-1.64B	-3.05B	-2.83B	-529.00M	-1.61B

Repsol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:REP, the sentiment is Positive. The current price of 15.7 is above the 20-day moving average (MA) of 14.87, above the 50-day MA of 14.64, and above the 200-day MA of 12.45, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 98.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:REP.

Repsol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLR	―	€1.84B	14.22	20.56%	―	27.18%	30.87%
GRE	―	€2.05B	22.80	24.77%	―	―	―
ANA	―	€10.45B	12.52	18.00%	2.70%	4.87%	339.22%
TRE	―	€2.49B	23.48	26.16%	―	25.71%	69.71%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
REP	―	€17.29B	24.18	3.24%	6.21%	-8.73%	-76.59%
SOL	―	€158.98M	―	―	―	-65.28%	24.77%