Redeia Corporacion S.A.
🇪🇸 RED.MC · Madrid · ES0173093024
Utilities
EUR 15.07 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 15.07 ÷ 0.93 = 16.1
TTM period through: 2025-12-31
Forward P/E (estimated): 16.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.1
Yield (Fwd)
5.31%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.25%
Net Debt/EBITDA (TTM)
5.2x
Latest quarter: 10.4x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 10.4x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
85.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 91.1%
Cash Flow Payout (TTM): 45.5%
FCF Coverage (TTM): -0.85x
ROE
9.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Redeia is the natural monopoly operator of Spain's electricity transmission grid, offering highly resilient cash flows and a critical role in the ongoing energy transition. The recent earnings dip and subsequent modest dividend adjustments are prudent strategic resets to fund record network investments and account for a one-time divestment loss, rather than signs of fundamental distress. Worth considering for new positions at current levels around €15, providing an attractive 5.3% yield backed by an unassailable competitive moat.
Sector Context
Redeia operates as the sole transmission system operator (TSO) for Spain's electricity grid, managing the high-voltage network and ensuring uninterrupted power delivery. For dividend investors, regulated utilities like Redeia offer highly predictable cash flows backed by state-mandated returns, allowing them to comfortably carry higher debt loads than standard corporations while financing essential infrastructure.
Temporary Opportunity Identified
A significant one-time capital loss from the Hispasat divestment and the expiration of the regulatory life for pre-1998 assets temporarily depressed 2024 earnings and necessitated a strategic dividend reset to fund new capex.
📊 Strategy Analysis
- • Unassailable natural monopoly as Spain's sole electricity transmission system operator, providing essential services with highly predictable, regulated revenues.
- • The 2024 earnings decline was largely driven by a temporary, one-off €137 million post-tax loss from the Hispasat divestment, obscuring the company's strong underlying operational stability.
- • Offers an attractive 5.3% dividend yield supported by exceptional EBITDA margins (72.4%) and strong Operating Cash Flow.
- • Recent dividend adjustments are prudent strategic resets designed to fund record investments in grid modernization rather than signals of fundamental business distress.
⚠ What to Watch
- • Net Debt/EBITDA of 5.18x is elevated, increasing sensitivity to a persistent higher-for-longer interest rate environment, though this leverage is customary for regulated utilities.
- • The conclusion of the regulatory useful life for pre-1998 assets creates a structural €260 million annual revenue headwind that the company must actively offset with new infrastructure investments.
- • Deeply negative Free Cash Flow (-€992M) reflects a massive capital expenditure cycle required for the ongoing renewable energy transition.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.