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Repsol (ES:REP)
BME:REP

Repsol (REP) AI Stock Analysis

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ES

Repsol

(BME:REP)

Rating:75Outperform
Price Target:
€13.50
▲(12.31%Upside)
Repsol's overall stock score reflects a balanced assessment of its financial stability, technical momentum, and attractive valuation. The company's financial performance, while solid, is challenged by declining revenue and cash flow growth, necessitating better cash management. Technical indicators suggest continued bullish momentum, albeit with caution due to overbought signals. Valuation metrics indicate potential undervaluation, supported by a strong dividend yield. These factors combined suggest a moderately optimistic outlook for Repsol's stock.
Positive Factors
Strategic Merger
Repsol announced a strategic merger of Repsol Resources UK with NEO Energy, creating a leading independent producer in the North Sea.
Synergies and Cash Generation
Repsol highlighted that the combined group is targeting synergies exceeding $1 billion, which it notes will enhance cash generation and shareholder returns.
Negative Factors
Decommissioning Liabilities
Repsol will retain $1.8bn of decommissioning liabilities to its legacy assets.
Production Levels
Production at 554kboe/d is below consensus at 573kboe/d, explained by declining US unconventional and higher maintenance in Latin America.

Repsol (REP) vs. iShares MSCI Spain ETF (EWP)

Repsol Business Overview & Revenue Model

Company DescriptionRepsol, 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 MoneyRepsol generates revenue primarily through its upstream and downstream operations. In the upstream sector, the company explores and produces crude oil and natural gas, which are sold to international markets. This segment is influenced by global oil and gas prices and production volumes. In the downstream segment, Repsol refines crude oil into various petroleum products such as gasoline, diesel, and jet fuel, which are distributed and marketed through its extensive network of service stations and wholesale channels. Additionally, Repsol is expanding its presence in renewable energy and low-carbon technologies, which contributes to its revenue streams. The company's earnings are also supported by strategic partnerships and joint ventures that enhance its operational capabilities and market reach.

Repsol Financial Statement Overview

Summary
Repsol demonstrates a robust financial structure with stable profitability and manageable debt levels. However, recent declines in revenue and cash flow growth highlight potential operational challenges. The company’s focus should be on improving cash efficiency and operational margins to enhance financial sustainability in the dynamic fossil fuels industry.
Income Statement
75
Positive
Repsol's income statement shows a mixed performance with a declining revenue growth rate of -3.1% from 2023 to 2024, and net profit margin decreasing to 3.07%. However, the company maintains a stable gross profit margin of approximately 19%. EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency. Despite these challenges, margins remain positive, reflecting underlying profitability.
Balance Sheet
70
Positive
The balance sheet indicates strong equity standing with a debt-to-equity ratio of 0.46, suggesting manageable leverage. Return on Equity (ROE) is at 6.63%, showing moderate returns to shareholders. Equity ratio stands at 41.9%, indicating a healthy balance between equity and assets. The balance sheet reflects stability but also highlights potential risks if debt levels increase.
Cash Flow
65
Positive
Cash flow analysis reveals a significant drop in free cash flow growth to -89.19% from 2023 to 2024, reflecting reduced cash efficiency. Operating cash flow to net income ratio is 2.83, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 0.14, indicating limited free cash flow relative to earnings. Overall, cash flow stability needs attention to improve future liquidity.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
70.04B57.12B58.95B75.15B49.74B33.28B
Gross Profit
11.08B10.91B12.52B16.11B10.28B5.06B
EBIT
1.40B1.95B4.29B10.29B5.69B-477.00M
EBITDA
4.94B5.61B7.22B8.95B6.44B52.00M
Net Income Common Stockholders
1.32B1.76B3.17B4.25B2.50B-3.32B
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.55B6.43B8.87B9.01B7.84B5.51B
Total Assets
61.59B63.19B61.63B59.96B56.25B49.30B
Total Debt
0.0012.19B10.56B13.36B14.49B15.56B
Net Debt
-3.27B7.43B6.43B6.85B8.90B11.24B
Total Liabilities
32.91B34.09B32.56B33.99B33.46B28.76B
Stockholders Equity
26.16B26.49B26.20B25.29B22.41B20.30B
Cash FlowFree Cash Flow
209.00M240.00M2.22B4.30B2.77B852.00M
Operating Cash Flow
4.55B4.96B6.51B7.83B4.68B2.74B
Investing Cash Flow
-1.93B-2.69B-5.85B-4.10B-2.93B222.00M
Financing Cash Flow
-2.71B-1.64B-3.05B-2.83B-529.00M-1.61B

Repsol Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.02
Price Trends
50DMA
11.23
Positive
100DMA
11.53
Positive
200DMA
11.46
Positive
Market Momentum
MACD
0.22
Negative
RSI
63.01
Neutral
STOCH
51.48
Neutral
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 12.02 is above the 20-day moving average (MA) of 11.82, above the 50-day MA of 11.23, and above the 200-day MA of 11.46, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.01 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:REP.

Repsol Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESREP
75
Outperform
€13.75B12.114.73%6.53%-4.11%-59.01%
58
Neutral
$7.35B3.36-4.49%5.60%0.82%-49.15%
€8.13B19.338.59%2.66%
€1.10B9.2819.50%
€1.53B15.9117.19%
DE5GR
€2.01B23.73
DE5PZ
€158.98M-167.81%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:REP
Repsol
12.23
-1.38
-10.16%
GB:0H4K
Acciona
149.70
36.76
32.55%
GB:0KCD
Solaria Energia y Medio Ambiente
8.80
-2.69
-23.41%
GB:0MKT
Tecnicas Reunidas
19.68
7.09
56.31%
DE:5GR
Grenergy Renovables S.A
68.00
38.15
127.81%
DE:5PZ
Soltec Power Holdings SA
1.66
-0.62
-27.19%

Repsol Corporate Events

Repsol Re-elects Directors, Ensuring Leadership Stability
May 30, 2025

The Ordinary General Meeting of Shareholders of Repsol, S.A. has approved the re-election of three directors for a four-year term, indicating stability and continuity in its leadership. This decision reflects the company’s commitment to maintaining its strategic direction and could reassure stakeholders about its governance and future operations.

The most recent analyst rating on (ES:REP) stock is a Buy with a EUR15.80 price target. To see the full list of analyst forecasts on Repsol stock, see the ES:REP Stock Forecast page.

Repsol’s Q1 2025 Results: Strategic Advances Amid Volatility
Apr 30, 2025

Repsol reported a net result of 366 million euros for the first quarter of 2025, reflecting a 62.2% decrease from the previous year, amid a volatile geopolitical and economic environment. Despite the challenges of lower crude oil prices and reduced refining margins, Repsol advanced its 2024-2027 strategy by enhancing shareholder remuneration, optimizing its asset portfolio, and forming strategic partnerships, such as a joint venture with NEO Energy in the UK. The company maintained strong liquidity and financial resilience, while continuing its commitment to a profitable energy transition.

Repsol Partners with Stonepeak in U.S. Renewable Portfolio
Apr 29, 2025

Repsol has partnered with Stonepeak, marking its first inclusion of a partner in its U.S. renewable portfolio. Stonepeak will invest $340 million to acquire a 46.3% stake in Repsol’s solar and storage assets in New Mexico and Texas, valued at $735 million. This strategic move is part of Repsol’s efforts to optimize its financial structure and incorporate partners to maximize value generation in its renewable business. The transaction, which includes the Frye solar park and the Jicarilla complex, is expected to close in the third quarter of 2025 and will help Repsol advance its growth strategy in the renewable energy sector.

Repsol Launches Fifteenth Cycle of Share Purchase Plan
Apr 10, 2025

Repsol has initiated the Fifteenth Cycle of its Share Purchase Plan, allowing beneficiaries of its Long-Term Incentive Programs to invest up to 50% of their incentives in company shares. The plan includes a provision for delivering additional shares if certain conditions are met over a three-year period, with specific performance requirements for executive committee members. This initiative aims to align the interests of the company’s leadership with those of its shareholders, potentially impacting Repsol’s market positioning and stakeholder engagement.

Repsol Executes Share Buyback Operations in Compliance with EU Regulations
Apr 2, 2025

Repsol has announced the execution of operations under its share buyback program, which was authorized by the General Shareholders’ Meeting in 2022. This initiative is part of the company’s compliance with EU regulations on market abuse, reflecting its commitment to regulatory standards and potentially impacting shareholder value.

Repsol Announces 2025 Shareholders Meeting Agenda
Apr 1, 2025

Repsol, S.A. has announced its Ordinary General Meeting of Shareholders to be held on May 30, 2025, at the Municipal Palace of Congresses in Madrid. The meeting will address key agenda items such as the examination and approval of the Annual Accounts, Management Report, Non-Financial Information Statement, and the appointment of an auditor for the fiscal year 2025, reflecting the company’s commitment to transparency and effective governance.

Repsol and NEO UK Merge to Form Major North Sea Oil and Gas Entity
Mar 27, 2025

Repsol has announced a strategic merger of its UK operations with NEO UK to form NEO NEXT, creating one of the largest independent oil and gas companies in the North Sea. This joint venture aims to enhance operational scale, efficiency, and growth prospects, targeting a production of 130,000 barrels of oil equivalent per day by 2025. The merger is expected to drive substantial growth and long-term value for shareholders, with Repsol holding a 45% stake and NEO UK 55%. The new entity will benefit from significant cost synergies and a diversified asset portfolio, ensuring resilience and profitability in the competitive UKCS market.

Repsol Announces Shareholders’ Meeting and Strategic Financial Plans
Mar 27, 2025

Repsol’s Board of Directors has scheduled the Ordinary General Shareholders’ Meeting for May 2025, where key agenda items include the approval of the 2024 annual accounts, management reports, and shareholder remuneration plans. The company plans to distribute dividends in July 2025 and January 2026, and proposes a significant share capital reduction by amortizing up to 10% of its own shares, reflecting a strategic move to enhance shareholder value.

Repsol Executes Share Buyback Transactions in March 2025
Mar 19, 2025

Repsol has announced the completion of several transactions under its share buyback program between March 12 and March 18, 2025. This program, authorized by the General Shareholders’ Meeting in 2022, is part of Repsol’s strategy to enhance shareholder value and optimize its capital structure. The transactions comply with EU regulations on market abuse and buyback programs.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.