E

EQUITY REPORT REN

Market Profile

12/16

08/16

04/16

12/15

08/15

04/15

12/14

08/14

04/14

Source: Yahoo Finance

Stock Performance

Value per share: 3,64

Corporate Finance Department | ffc@fepfinanceclub.org | www.fepfinanceclub.org

REN

PSI 20

Source: Yahoo Finance

EDP

12/15

09/15

06/15

03/15

12/14

160
140
120
100
80
60
09/14

For REN, environment-related issues mean much more than

compliance with legal obligations. This is why, since 10 years, REN
has been developing a systematised approach and improving its
environmental management practices in articulation with
integration with other relevant aspects for its processes and
stakeholders, with particular regard to quality, safety and health.

4,00
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00

06/14

The strategy of the group for its future is to be one of the most
efficient energy transmission operators, while creating value to
the parts - shareholders, workers, clients, local communities,
partners and suppliers - in a sustainable development framework.
They intend to achieve this goal by complementing their focus in
Portugal with the pursuit of opportunities abroad, while excelling
in the operational management of the assets under their control.

Share Price

03/14

The internationalisation of REN's operations is a business that is

taking its first steps, and received a new impulse with the entry of
strategic international partners (State Grid and Oman Oil) in to
the company capital.

2.59
2.73 2.77
320.4
880.92
43%

Source: Yahoo Finance

12/13

REN - Redes Energticas Nacionais Jernimo is a Portuguese

Corporate Group, that operates in two major business areas: the
transmission in very high voltage electricity and overall technical
management of the National Electricity System and the transport
of high-pressure natural gas and overall technical management of
the National Natural Gas System, guaranteeing the reception,
storage and regasification of LNG and underground storage of
natural gas. REN also operates in the telecommunications
business via RENTELECOM, which includes a range of services,
such as infrastructure, managed services and consultancy.

12/13

Business

Share Price (10/02/2016)

52-Week Price Range ()
Outstanding Shares (m)
Market Cap. (m)
Free Float (%)

EQUITY REPORT REN

WACC

8,85%

Beta

1.24

Equity Market Premium

5,70%

Risk Free Rate

3,73%

D/V
kd
Ke

2.48
7.00%
17.09%

Table 1- WACC for REN, group

estimates

Multiples
REN Industry EDP
EV/EBITDA
PER
PBV
Div Yield

6.71

8.05

7.2

9.44

15.48

12.7

1.26

1.62

1.3

6.35

2.92

5.90

Source: Company Data and

Gurufocus.com

Growth rate

Margins

0,50%
0,75%
1,00%
1,25%
1,50%

7,85%
4,42
4,69
4,97
5,27
5,60

8,35%
3,79
4,02
4,26
4,52
4,79

wacc
8,85%
3,24
3,43
3,64
3,86
4,10

9,35%
2,74
2,92
3,10
3,29
3,49

9,85%
2,31
2,46
2,61
2,78
2,96

Cludia Castro

Corporate Finance Department | ffc@fepfinanceclub.org | www.fepfinanceclub.org

Pedro Reis