Redeia Corporación, S.A. (RED.MC) stock analysis

In our weekly check, Redeia Corporación, S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 9, red flags: 6.

About Redeia Corporación, S.A.

Redeia Corporación, S.A. is an Utilities company (Regulated Electric) based in Spain, listed on BME as RED.MC.

What our checks show for RED.MC

Red flags

• The gross margin fell by 16 points, to 85.9%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 3.9% a year.
• Free cash flow is negative (-18.6% of revenue): the business spends more cash than it brings in.
• The dividend takes 127% of profit: little cushion if profit falls.
• Recovering from its deepest fall took about 5 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.2x a year of EBITDA (debt/equity 1.06). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 4.9 points over 5 years, to 30%: the company keeps less of each sale as profit.
• Analysts expect earnings per share to shrink about 6.9% a year.
• Analysts expect the net margin to shrink by 1.2 points from today's 30%.
• Revenue grew only 1.8% a year over the last 3 years.
• Earnings per share fell 1.4% a year over the last 3 years.
• Net profit fell 1.4% a year over the last 3 years.
• The stock has fallen as much as 41% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 6.7%.

Strengths

• Operating cash flow is 1.59x net profit: the profit arrives as real cash.
• The company keeps 30% of its revenue as net profit.
• The price is 12.6 times earnings (P/E), reasonable for its growth.
• The price moves calmly: 16.4% annual volatility.
• Beta 0.45: the stock usually moves less than the market.

Next earnings report: 2026-10-28

Similar companies

IDA · TXNM · OGE · ENIC · POR · PNW

Questions

What grade does Redeia Corporación, S.A. (RED.MC) have?

In our weekly check, Redeia Corporación, S.A. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 10 pass, warnings: 9, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RED.MC stock?

This week's biggest flags for Redeia Corporación, S.A.: Gross margin falling, Weak revenue forecast, Weak free cash flow. In total 15 of 25 checks show a warning or a red flag.

What does Redeia Corporación, S.A. do?

Redeia Corporación, S.A. is an Utilities company (Regulated Electric) based in Spain, listed on BME as RED.MC.

When does Redeia Corporación, S.A. report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis