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Redeia Corporación
(BME:RED)
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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)
Market Cap
€8.25B
Dividend Yield4.27%
Average Volume (3M)1.48M
Price to Earnings (P/E)13.1
Beta (1Y)0.30
Revenue Growth4.10%
EPS Growth37.07%
CountryES
Employees1,962
SectorGeneral
Sector StrengthN/A
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.42
Shares Outstanding541,080,000
10 Day Avg. Volume1,572,480
30 Day Avg. Volume1,475,781
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.56
Price to Sales (P/S)4.95
P/FCF Ratio-20.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€15.70Price Target Upside4.60% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.93
Revenue Forecast (FY)€1.74B
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
Income Statement
76
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 1.66B | 1.59B | 2.06B | 2.02B | 1.95B |
| Gross Profit | 1.79B | 1.04B | 1.63B | 2.08B | 2.04B | 1.99B |
| EBITDA | 1.60B | 1.20B | 1.28B | 1.52B | 1.48B | 1.53B |
| Net Income | 628.40M | 505.60M | 368.44M | 689.64M | 664.73M | 680.63M |
Balance Sheet | ||||||
| Total Assets | 16.00B | 15.35B | 15.09B | 14.48B | 14.78B | 13.98B |
| Cash, Cash Equivalents and Short-Term Investments | 908.30M | 602.42M | 923.26M | 714.66M | 1.55B | 1.60B |
| Total Debt | 6.48B | 6.77B | 6.40B | 5.80B | 6.24B | 7.32B |
| Total Liabilities | 10.49B | 8.20B | 9.83B | 8.96B | 9.89B | 10.30B |
| Stockholders Equity | 5.51B | 5.25B | 5.15B | 5.41B | 4.79B | 3.63B |
Cash Flow | ||||||
| Free Cash Flow | -1.18B | -393.87M | -123.00M | -464.35M | 1.03B | 1.05B |
| Operating Cash Flow | 1.00B | 1.01B | 955.63M | 491.90M | 1.57B | 1.61B |
| Investing Cash Flow | -806.01M | -717.50M | -947.38M | -66.47M | -1.64B | -537.64M |
| Financing Cash Flow | -387.69M | -636.80M | 324.46M | -547.20M | -708.19M | 22.32M |
Redeia Corporación Technical Analysis
Positive
15.01
Price Trends
14.56
Positive
14.59
Positive
14.73
Positive
Market Momentum
0.21
Negative
65.35
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €26.70B | 13.71 | 23.65% | 6.66% | 0.98% | 9.89% | |
69 Neutral | €39.27B | 17.41 | 27.50% | 4.32% | -1.55% | 9.15% | |
66 Neutral | €8.25B | 13.12 | 12.00% | 4.27% | 4.10% | 37.07% | |
62 Neutral | €136.56B | 22.65 | 11.79% | 2.92% | -0.50% | 19.02% | |
60 Neutral | €13.29B | 17.00 | 14.59% | 2.87% | 5.45% | 90.20% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | €4.41B | 16.91 | 11.42% | 7.01% | 9.22% | ― |
* General Sector Average
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.