Company DescriptionRedeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. Its transmission network comprises approximately 45,019 kilometers; and has 94,221 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and renders space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was incorporated in 1985 and is based in Alcobendas, Spain.

How the Company Makes Money

Red Electrica Corporacion Financial Statement Overview

Summary

Red Electrica Corporacion exhibits solid operational margins and a stable balance sheet, typical for a regulated utility. However, challenges arise from declining revenues and net income, coupled with reduced free cash flow, which indicate potential constraints for future investments and shareholder returns.

Income Statement

Positive

Red Electrica Corporacion's income statement shows a decline in total revenue from the previous year, with a significant decrease in net income as well. The gross profit margin is strong, indicating effective cost control. However, the net profit margin has decreased, reflecting reduced profitability. The EBIT and EBITDA margins remain healthy, suggesting operational efficiency despite revenue challenges.

Balance Sheet

Positive

The company's balance sheet indicates a solid equity base with a debt-to-equity ratio that is manageable for the industry. There is a stable return on equity, but the equity ratio is moderate, suggesting some reliance on debt financing. Overall, the balance sheet reflects a stable financial position with adequate resources to cover liabilities.

Cash Flow

Neutral

Cash flow analysis reveals a decline in free cash flow due to increased capital expenditures. The operating cash flow is positive but has decreased from the prior year, impacting the free cash flow to net income ratio. This indicates potential constraints in cash availability for investments and shareholder returns.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.59B	2.06B	2.02B	1.95B	1.99B
	Gross Profit
1.63B	2.08B	2.04B	1.99B	2.02B
	EBIT
761.36M	989.67M	961.55K	991.97M	929.01M
	EBITDA
1.28B	1.45B	1.48B	1.53B	1.46B
	Net Income Common Stockholders
368.44M	689.64M	664.73M	680.63M	621.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
923.26M	714.66M	1.55B	1.60B	517.58M
	Total Assets
15.09B	14.48B	14.78B	13.98B	12.84B
	Total Debt
6.40B	5.80B	6.24B	7.32B	6.64B
	Net Debt
5.51B	5.12B	5.44B	5.74B	6.16B
	Total Liabilities
9.83B	8.96B	9.89B	10.30B	9.35B
	Stockholders Equity
5.15B	5.41B	4.79B	3.63B	3.44B
Cash Flow		Free Cash Flow
-123.00M	-464.35M	1.03B	1.05B	835.09M
	Operating Cash Flow
955.63M	491.90M	1.57B	1.61B	1.38B
	Investing Cash Flow
-947.38M	-66.47M	-1.64B	-537.64M	-905.55M
	Financing Cash Flow
324.46M	-547.20M	-708.19M	22.32M	-314.67M

Red Electrica Corporacion Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0RI5		€9.63B	26.50	9.44%	4.15%	―	―
Sector *	64 Neutral	$8.54B	10.30	4.24%	4.37%	4.14%	-13.04%
0EBQ		€3.67B	10.12	-11.89%	8.33%	―	―
0N9G		€28.64B	13.15	26.26%	2.98%	―	―
0NPV		€25.27B	13.12	20.32%	4.32%	―	―
0HIT		€101.86B	20.49	10.55%	2.99%	―	―
5BP		€6.42B	17.79	6.11%	2.02%	―	―

* Utilities Sector Average

Performance Comparison

GB:0RI5

Red Electrica Corporacion

18.08

1.93

11.95%

GB:0EBQ

Enagas SA

14.07

0.62

4.61%

GB:0N9G

Endesa SA

27.07

9.31

52.42%

GB:0NPV

Naturgy Energy Group, S.A.

26.12

2.88

12.39%

GB:0HIT

Iberdrola

15.99

4.32

37.02%

DE:5BP

Corporacion Acciona Energias Renovables SA

19.58

-1.00

-4.86%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.