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Redeia Corporación (ES:RED)
BME:RED
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Redeia Corporación (RED) AI Stock Analysis

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ES:RED

Redeia Corporación

(BME:RED)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
€16.50
▲(9.93% Upside)
Action:Reiterated
Date:07/10/26
The score is held back primarily by weak cash conversion (deeply negative free cash flow despite solid profits), which reduces financial flexibility. Offsetting that, valuation is attractive (moderate P/E and ~5.2% yield) and technicals show a constructive uptrend (price above key moving averages, positive MACD), though momentum appears somewhat stretched (RSI ~70.7).
Positive Factors
Regulated revenue model
Redeia’s core earnings come from regulated transmission and system operation with allowed revenues tied to recognized assets and regulator-set compensation. This business model provides predictable, contract-like cash flows and durable revenue visibility over multi-month planning horizons.
Negative Factors
Deeply negative free cash flow
Persistently negative FCF, about -€1.18B TTM, undermines financial flexibility: it limits capacity to pay down debt, sustain dividends, or self-fund new investments without external financing. Over a 2–6 month horizon, ongoing negative cash conversion constrains strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated revenue model
Redeia’s core earnings come from regulated transmission and system operation with allowed revenues tied to recognized assets and regulator-set compensation. This business model provides predictable, contract-like cash flows and durable revenue visibility over multi-month planning horizons.
Read all positive factors

Redeia Corporación (RED) vs. iShares MSCI Spain ETF (EWP)

Redeia Corporación Business Overview & Revenue Model

Company Description
Redeia Corporación, S.A. is primarily involved in the transmission of electricity, alongside the extensive operation and management of power transmission networks. The company's activities extend across Spain and into various international markets...
How the Company Makes Money
Redeia primarily makes money from regulated electricity activities in Spain: (1) Electricity transmission—its subsidiary Red Eléctrica de España earns revenue based on the regulated remuneration framework for operating, maintaining, and investing ...

Redeia Corporación Financial Statement Overview

Summary
Profitability is strong (about ~30% net margin) and leverage is improving (debt-to-equity ~1.17 vs ~2.01 in 2021), but cash generation is a major constraint: free cash flow is deeply negative (TTM ~-€1.18B) despite positive operating cash flow (~€1.00B). Revenue growth is strong TTM (~+23%) but longer-term revenue is choppy, reducing stability.
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.09B1.66B1.59B2.06B2.02B1.95B
Gross Profit1.79B1.04B1.63B2.08B2.04B1.99B
EBITDA1.60B1.20B1.28B1.52B1.48B1.53B
Net Income628.40M505.60M368.44M689.64M664.73M680.63M
Balance Sheet
Total Assets16.00B15.35B15.09B14.48B14.78B13.98B
Cash, Cash Equivalents and Short-Term Investments908.30M602.42M923.26M714.66M1.55B1.60B
Total Debt6.48B6.77B6.40B5.80B6.24B7.32B
Total Liabilities10.49B8.20B9.83B8.96B9.89B10.30B
Stockholders Equity5.51B5.25B5.15B5.41B4.79B3.63B
Cash Flow
Free Cash Flow-1.18B-393.87M-123.00M-464.35M1.03B1.05B
Operating Cash Flow1.00B1.01B955.63M491.90M1.57B1.61B
Investing Cash Flow-806.01M-717.50M-947.38M-66.47M-1.64B-537.64M
Financing Cash Flow-387.69M-636.80M324.46M-547.20M-708.19M22.32M

Redeia Corporación Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.01
Price Trends
50DMA
14.56
Positive
100DMA
14.59
Positive
200DMA
14.73
Positive
Market Momentum
MACD
0.21
Negative
RSI
65.35
Neutral
STOCH
69.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:RED, the sentiment is Positive. The current price of 15.01 is above the 20-day moving average (MA) of 14.94, above the 50-day MA of 14.56, and above the 200-day MA of 14.73, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:RED.

Redeia Corporación Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€26.70B13.7123.65%6.66%0.98%9.89%
69
Neutral
€39.27B17.4127.50%4.32%-1.55%9.15%
66
Neutral
€8.25B13.1212.00%4.27%4.10%37.07%
62
Neutral
€136.56B22.6511.79%2.92%-0.50%19.02%
60
Neutral
€13.29B17.0014.59%2.87%5.45%90.20%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
€4.41B16.9111.42%7.01%9.22%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:RED
Redeia Corporación
15.22
-1.49
-8.92%
ES:ANA
Acciona
250.60
99.19
65.52%
ES:ENG
Enagas SA
16.88
4.33
34.49%
ES:ELE
Endesa SA
38.83
13.58
53.80%
ES:NTGY
Naturgy Energy Group, S.A.
28.24
2.58
10.06%
ES:IBE
Iberdrola
21.06
5.90
38.94%
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.Date of analysis: Jul 10, 2026