Corporacion Acciona Energias Renovables SA (5BP) AI Stock Analysis

• Market Cap: €6.42B
• Dividend Yield: 2.02%
• Average Volume (3M): 1.00
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.61
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: DE
• Employees: 3,224
• Sector: Utilities
• Sector Strength: 77
• Industry: Renewable Utilities
• EPS (TTM): 0.07
• Shares Outstanding: 324,761,840
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1
• PEG Ratio: 0.17
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.69
• 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: €21.25
• Price Target Upside: 8.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Positive Factors

Asset Disposal Strategy

Higher capital gains from disposals are expected to improve 2025E estimates.

Debt Management

Acciona Energia's new more disciplined capital allocation approach is acknowledged and sufficient to keep its investment grade credit rating.

Market Recovery

Spain power prices are expected to register a substantial recovery in 2H24E.

Negative Factors

Earnings Estimate

The company's FY24E EBITDA is expected to decrease by 14% following lower operating revenues.

Financial Leverage

Financial leverage remains too high, limiting the company's ability to sustain its targeted growth pace.

Policy Uncertainty

Exposure to US policy uncertainty affects the group's battery projects and creates a lack of visibility on IRA reform.

Corporacion Acciona Energias Renovables SA Business Overview & Revenue Model

Company Description

Corporación Acciona Energías Renovables, S.A. engages in the promotion, construction, operation, maintenance, and development of renewable energy projects in Spain and internationally. The company operates onshore wind, photovoltaic solar, hydraulic, biomass, solar thermal, and green hydrogen power projects. It is also involved in fuel imports and exports; and sales and co-generation services, including engineering, consulting, and auditing of sites and projects, as well as drafting plans. The company was incorporated in 2008 and is headquartered in Alcobendas, Spain. Corporación Acciona Energías Renovables, S.A. operates as a subsidiary of Acciona, S.A.

How the Company Makes Money

Corporacion Acciona Energias Renovables SA Financial Statement Overview

Summary

Corporacion Acciona Energias Renovables SA demonstrates strong operational efficiency with healthy margins, but faces challenges in revenue growth and cash flow generation. The increase in leverage and negative free cash flow are significant concerns that need addressing to ensure long-term financial stability. Overall, while operationally sound, the financial strategy may require adjustments to manage debt levels and improve cash flows.

Income Statement

The company has shown a decrease in total revenue from the previous year, with a significant drop from €3.982 billion in 2023 to €3.048 billion in 2024. The gross profit margin remains stable at around 39%, and the net profit margin is 11.7%. However, the decline in revenue and net income from 2023 to 2024 suggests potential challenges in maintaining growth. The EBIT and EBITDA margins are relatively strong, at 22.9% and 38.8%, respectively, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased to 0.93 in 2024, reflecting higher leverage. Return on equity dropped to 6.1%, indicating less effective use of equity to generate profit. The equity ratio is 36%, showing a solid backing of assets by equity. Despite the increase in assets, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

The company continues to face challenges in generating positive free cash flow, reporting a negative free cash flow of €949 million in 2024. The operating cash flow to net income ratio is 1.9, suggesting that the company is generating sufficient cash from operations relative to its net income. However, the negative free cash flow highlights issues in covering capital expenditures with available cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.67B	3.05B	3.98B	4.35B	2.47B	1.76B
	Gross Profit
1.93B	1.19B	2.08B	1.95B	1.26B	854.50M
	EBIT
519.00M	699.00M	916.00M	1.23B	695.21M	534.30M
	EBITDA
952.00M	1.18B	1.41B	1.60B	1.02B	765.18M
	Net Income Common Stockholders
184.00M	357.00M	524.00M	759.00M	363.00M	205.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
487.00M	619.00M	825.00M	804.00M	791.77M	664.00M
	Total Assets
15.09B	16.24B	14.67B	12.26B	10.65B	9.81B
	Total Debt
5.01B	5.44B	5.01B	2.83B	3.00B	4.51B
	Net Debt
4.56B	4.95B	4.27B	2.22B	2.38B	4.04B
	Total Liabilities
8.99B	10.01B	8.33B	6.00B	5.30B	6.77B
	Stockholders Equity
5.61B	5.84B	5.85B	5.87B	4.98B	2.67B
Cash Flow		Free Cash Flow
-1.08B	-949.00M	-1.54B	212.00M	144.56M	-63.20M
	Operating Cash Flow
435.00M	681.00M	364.00M	1.34B	865.97M	429.90M
	Investing Cash Flow
-1.57B	-1.45B	-1.90B	-1.24B	-707.50M	-502.20M
	Financing Cash Flow
1.02B	522.00M	1.66B	-114.00M	-7.80M	257.10M

Corporacion Acciona Energias Renovables SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5BP		€6.42B	17.79	6.11%	2.02%	―	―
Sector *	64 Neutral	$8.54B	10.30	4.24%	4.37%	4.14%	-13.04%
0HAC		€15.00B	17.81	16.48%	2.83%	―	―
0N9G		€28.64B	13.15	26.26%	2.98%	―	―
0P2N		€32.11B	10.05	65.54%	1.47%	―	―
0HIT		€101.86B	20.49	10.55%	2.99%	―	―
0QWI		€149.80B	25.52	30.61%	2.72%	―	―