RED ELECTRICA CORP SA

Red Electrica is engaged in the transmission of electrical energy, the operation of the system and the management of the transmission network in the Spanish electricity system. In addition, through its subsidiaries, Co. is engaged in the acquisition, holding and management of foreign securities, co-ordination of international exchanges, provision of telecommunications services for third parties, provision of consultancy, engineering and construction services outside the Spanish electricity system, securing of funds, carrying out of financial transactions and provision of financial services.
  • TickerREE
  • ISINES0173093024
  • ExchangeMadrid Stock Exchange
  • SectorElectricity
  • CountrySpain

Analysts

Tancrede Fulop

Morningstar | Spanish Watchdog Plans Sharp Remuneration Cut for Energy Networks; Endesa Still Overvalued

On July 5, the Spanish watchdog CNMC (national commission of markets and competition) proposed cuts in remuneration of energy networks much sharper than our and market's expectations. Companies affected have now one month to present their allegations. All in all, we do not change our estimates at this stage. Still, these proposals strengthen our cautious view on European regulated utilities due to upcoming significant returns cut against a backdrop of low interest rates. In Spain, Endesa remains overvalued. The CNMC proposes an average annual remuneration cut of 7%-8% for electricity distribu...

Tancrede Fulop

Spanish Watchdog Plans Sharp Remuneration Cut for Energy Networks; Endesa Still Overvalued

On July 5, the Spanish watchdog CNMC (national commission of markets and competition) proposed cuts in remuneration of energy networks much sharper than our and market's expectations. Companies affected have now one month to present their allegations. All in all, we do not change our estimates at this stage. Still, these proposals strengthen our cautious view on European regulated utilities due to upcoming significant returns cut against a backdrop of low interest rates. In Spain, Endesa remains...

RED ELECTRICA CORPN.SA sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of RED ELECTRICA CORPN.SA (ES), a company active in the Conventional Electricity industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date May 10, 2019, the closing price was EUR 18.90 and its potential was estimated at EUR 20.15.

Tancrede Fulop

Morningstar | Reduction of Weight of Regulated Activities Reduces Red Electrica's Earnings Visibility

Red Electrica's fully regulated electric transmission business has protected the company from the doldrums faced by most diversified European utilities since 2011. Since 2014, the beginning of the current regulatory period in Spain, Red Electrica has delivered 7% annual dividend growth while many other European utilities had to cut their dividends to protect their balance sheets.The Spanish regulatory regime will change in 2020 with the adoption of a remuneration scheme based on weighted average cost of capital for energy networks. That will drive a cut in current allowed returns, flat since 2...

Tancrede Fulop

Reduction of Weight of Regulated Activities Reduces Red Electrica's Earnings Visibility

We reiterate our fair value estimate of EUR 17.80 and our narrow, stable moat trend ratings after Red Electrica released 2018 results in line with expectations. The dividend is set at EUR 0.98, 7% higher than in 2017, in line with our estimates and the business plan, implying a yield of 5.1%, in line with the sector average. We view the shares as overvalued. EBITDA increased by 1.3% to EUR 1.54 billion, the lowest growth rate since 2013, in line with our expectations. Tepid 0.4% revenue growth w...

Tancrede Fulop

Morningstar | Spanish Watchdog Plans Sharp Remuneration Cut for Energy Networks; Endesa Still Overvalued

On July 5, the Spanish watchdog CNMC (national commission of markets and competition) proposed cuts in remuneration of energy networks much sharper than our and market's expectations. Companies affected have now one month to present their allegations. All in all, we do not change our estimates at this stage. Still, these proposals strengthen our cautious view on European regulated utilities due to upcoming significant returns cut against a backdrop of low interest rates. In Spain, Endesa remains overvalued. The CNMC proposes an average annual remuneration cut of 7%-8% for electricity distribu...

Tancrede Fulop

Spanish Watchdog Plans Sharp Remuneration Cut for Energy Networks; Endesa Still Overvalued

On July 5, the Spanish watchdog CNMC (national commission of markets and competition) proposed cuts in remuneration of energy networks much sharper than our and market's expectations. Companies affected have now one month to present their allegations. All in all, we do not change our estimates at this stage. Still, these proposals strengthen our cautious view on European regulated utilities due to upcoming significant returns cut against a backdrop of low interest rates. In Spain, Endesa remains...

Tancrede Fulop

Morningstar | Reduction of Weight of Regulated Activities Reduces Red Electrica's Earnings Visibility

Red Electrica's fully regulated electric transmission business has protected the company from the doldrums faced by most diversified European utilities since 2011. Since 2014, the beginning of the current regulatory period in Spain, Red Electrica has delivered 7% annual dividend growth while many other European utilities had to cut their dividends to protect their balance sheets.The Spanish regulatory regime will change in 2020 with the adoption of a remuneration scheme based on weighted average cost of capital for energy networks. That will drive a cut in current allowed returns, flat since 2...

Tancrede Fulop

Reduction of Weight of Regulated Activities Reduces Red Electrica's Earnings Visibility

We reiterate our fair value estimate of EUR 17.80 and our narrow, stable moat trend ratings after Red Electrica released 2018 results in line with expectations. The dividend is set at EUR 0.98, 7% higher than in 2017, in line with our estimates and the business plan, implying a yield of 5.1%, in line with the sector average. We view the shares as overvalued. EBITDA increased by 1.3% to EUR 1.54 billion, the lowest growth rate since 2013, in line with our expectations. Tepid 0.4% revenue growth w...

Tancrede Fulop

Morningstar | Red Electrica's 2018 Results Are In Line With Expectations; Shares Overvalued

We reiterate our fair value estimate of EUR 17.80 and our narrow, stable moat trend ratings after Red Electrica released 2018 results in line with expectations. The dividend is set at EUR 0.98, 7% higher than in 2017, in line with our estimates and the business plan, implying a yield of 5.1%, in line with the sector average. We view the shares as overvalued. EBITDA increased by 1.3% to EUR 1.54 billion, the lowest growth rate since 2013, in line with our expectations. Tepid 0.4% revenue growth was offset by an 8% reduction in operating costs excluding staff costs on efficiencies and lower cla...

1 director bought

A director at Red Electrica Corporacion Sa bought 3,714 shares at 19.370EUR and the significance rating of the trade was 59/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The...

RED ELECTRICA CORPN.SA sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of RED ELECTRICA CORPN.SA (ES), a company active in the Conventional Electricity industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date May 10, 2019, the closing price was EUR 18.90 and its potential was estimated at EUR 20.15.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Red Electrica, March 21 2019

In item 6.1, the Board proposes to ratify the appointment of the non-executive Chairman  Mr. Jordi Sevilla Segura. Mr. Sevilla Segura does not qualify as independent due to his  relationships with the Spanish Government and political institutions. We appreciate that the Board proposes to appoint an external non-executive Chairman, as it announced at  the time of the separation of the Chair and CEO positions in 2015. Furthermore, we  note that the Board has decided to appoint a Lead Independent Director even if the Chairperson is not executive. Also taking into account Mr. Sevilla Segura's prof...

Red Electrica – Proxinvest Corporate Governance Rating ® : B

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Jérôme VINERIER

Short term view - RED ELECTRICA DE : The background trend is clearly bullish.

The background trend is clearly bullish. Prices are still making progress but there is less power in the movement. The next resistance is at €19.100. Breaking below the support at €17.600 would invalidate the trend.

Jérôme VINERIER

Analyse court terme - RED ELECTRICA DE : La tendance de fond est clairement orientée à la hausse.

La tendance de fond est clairement orientée à la hausse. Les cours progressent encore, mais le mouvement montre moins de puissance. La prochaine résistance est à 19,100 €. La rupture du support à 17,600 € invaliderait cette tendance.

Jérôme VINERIER

Analyse court terme - RED ELECTRICA DE : La tendance de fond est clairement orientée à la hausse.

La tendance de fond est clairement orientée à la hausse. Les cours progressent toujours. Les objectifs suivants sont à 19,100 € et 20,600 €. La tendance serait invalidée sous le support à 17,600 €.

Jérôme VINERIER

Short term view - RED ELECTRICA DE : The background trend is clearly bullish.

The background trend is clearly bullish. Prices are still making progress. The following targets are at €19.100 and €20.600. The trend would be invalidated below the support at €17.600.

Louis AZAIS

Analyse court terme - RED ELECTRICA DE : La tendance de fond est clairement orientée à la hausse.

La tendance de fond est clairement orientée à la hausse. Les cours progressent encore, mais le mouvement montre moins de puissance. La prochaine résistance est à 18,28 €. La rupture du support à 16,90 € invaliderait cette tendance.

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