Repsol (REP) AI Stock Analysis

• Market Cap: €17.77B
• Dividend Yield: 6.16%
• Average Volume (3M): 3.97M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.63
• Revenue Growth: -6.61%
• EPS Growth: -44.09%
• Country: ES
• Employees: 25,136
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.67
• Shares Outstanding: 1,128,372,300
• 10 Day Avg. Volume: 4,191,026
• 30 Day Avg. Volume: 3,972,537
• PEG Ratio: -0.19
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 57.62
• 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: €17.04
• Price Target Upside: 7.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €18.00 ▲(13.64% Upside)

Repsol's overall stock score is driven by strong cash flow management and positive technical indicators, which offset concerns about declining revenue growth. The valuation is fair, with an attractive dividend yield, supporting a balanced investment case. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Strategic Partnerships

The strategic partnership with TotalEnergies enhances Repsol's market position in the UK Continental Shelf, potentially boosting production and revenue.

Cash Flow Management

Strong cash flow growth indicates effective cash management, providing a buffer for financial stability and potential for reinvestment in growth areas.

Renewable Energy Investments

Investments in renewable energy align with global sustainability trends, potentially opening new revenue streams and enhancing long-term competitiveness.

Negative Factors

Declining Revenue Growth

Declining revenue growth may impact future earnings, suggesting challenges in maintaining market share or pricing power in core segments.

Low Return on Equity

A low ROE indicates potential inefficiencies in generating returns from equity, which could limit shareholder value creation over time.

Operational Efficiency Challenges

Decreasing margins suggest operational efficiency challenges, which could hinder profitability and competitiveness if not addressed.

Repsol Business Overview & Revenue Model

Company Description

Repsol S.A. is a global energy company headquartered in Madrid, Spain, engaged in the exploration, production, refining, and marketing of oil and gas. The company operates primarily in the upstream (exploration and production) and downstream (refining, distribution, and marketing) sectors. Repsol also invests in renewable energy projects, positioning itself as a key player in the transition towards more sustainable energy sources. Its core products include crude oil, natural gas, petroleum products, and a range of renewable energy solutions.

How the Company Makes Money

Repsol generates revenue through multiple key streams. The upstream segment, which involves the exploration and production of oil and gas, is a significant contributor, as the company sells extracted crude oil and natural gas to various markets. In the downstream segment, Repsol earns money by refining crude oil into various petroleum products and by selling these products through its extensive network of service stations and distribution channels. Additionally, Repsol has been investing in renewable energy, enhancing its revenue potential through the sale of electricity and renewable fuels. Strategic partnerships and joint ventures, especially in exploration and renewable projects, also play a crucial role in augmenting revenue, enabling the company to share risks and access new markets.

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. The company maintains a manageable debt-to-equity ratio and a significant increase in free cash flow.

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	68.34B	57.12B	58.95B	69.29B	49.74B	33.28B
Gross Profit	11.98B	7.75B	9.47B	16.11B	10.10B	7.01B
EBITDA	4.86B	5.61B	7.22B	9.93B	6.74B	-557.00M
Net Income	1.14B	1.76B	3.17B	4.25B	2.50B	-3.29B
Balance Sheet
Total Assets	58.33B	63.19B	61.63B	59.96B	56.25B	49.30B
Cash, Cash Equivalents and Short-Term Investments	7.98B	6.43B	8.87B	9.01B	7.84B	5.51B
Total Debt	17.26B	12.19B	10.56B	13.36B	14.49B	15.56B
Total Liabilities	34.12B	34.09B	32.56B	33.99B	33.46B	28.76B
Stockholders Equity	21.68B	26.49B	26.20B	25.29B	22.41B	20.30B
Cash Flow
Free Cash Flow	1.71B	240.00M	2.22B	4.30B	2.77B	852.00M
Operating Cash Flow	5.35B	4.96B	6.51B	7.83B	4.68B	2.74B
Investing Cash Flow	-3.26B	-2.69B	-5.85B	-4.10B	-2.93B	222.00M
Financing Cash Flow	-1.55B	-1.64B	-3.05B	-2.83B	-529.00M	-1.61B

Repsol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 15.84 is below the 20-day moving average (MA) of 16.13, above the 50-day MA of 15.75, and above the 200-day MA of 13.24, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLR	76 Outperform	€1.92B	14.79	26.57%	―	43.90%	123.87%
GRE	74 Outperform	€2.12B	23.62	26.86%	―	―	―
REP	72 Outperform	€17.77B	15.71	3.24%	6.16%	-6.61%	-44.09%
ANA	69 Neutral	€10.88B	13.03	18.00%	2.95%	4.87%	339.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TRE	58 Neutral	€2.33B	21.96	24.64%	―	41.87%	55.79%
SOL	39 Underperform	€158.98M	-1.57	―	―	-65.28%	24.77%