# REN - Redes Energéticas Nacionais SGPS (RENE.LS)

Canonical: https://gigainvestors.com/s/RENE.LS

Analysis as of: 2026-10-16T07:39:44.659Z. Financial observations: FY2003–FY2026.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 3.56 per share; close as of 2026-10-15.

Estimated value: low EUR 2.87 per share, central EUR 3.27 per share, high EUR 3.80 per share. Buy at or below the central value EUR 3.27 per share. Valuation as of 2026-10-16T07:39:44.659Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; PT 10-year bond 3.9% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.37×

- FY2018: 0.38×

- FY2019: 0.33×

- FY2020: 0.32×

- FY2021: 0.28×

- FY2022: 0.31×

- FY2023: 0.28×

- FY2024: 0.26×

- FY2025: 0.24×

- LTM to Jun 2026: 0.24×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 13.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.8%

- ROIC, second-lowest year: 4.1%

- Typical minus recent gross margin: 13.1 pp

- Typical gross margin (annual median): 77.6%

- Recent gross margin (lower of latest and 3-year median): 64.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 25.0%

- ROIC including acquisitions, ten-year median: 4.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.0%

- FY2017: 4.6%

- FY2018: 4.3%

- FY2019: 4.1%

- FY2020: 4.1%

- FY2021: 4.1%

- FY2022: 5.0%

- FY2023: 5.1%

- FY2024: 5.6%

- FY2025: 5.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 600M

- Net income, five-year total: EUR 670M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.2 pp

- Working capital / revenue, change between three-year averages: -15.7 pp

- Working capital / revenue, final three-year average: 11.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.41×

- FY2022: 1.36×

- FY2023: 1.02×

- FY2024: 0.70×

- FY2025: 0.33×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.6% vs 5.5%

- Per-share earnings: 0.18 to 0.23 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: EUR 488M

- Cumulative retained earnings: EUR -2.8M

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.2%

- Per-share value change: EUR 0.05

- Per-share value, starting three-year median: EUR 0.18

- Per-share value, ending three-year median: EUR 0.23

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 536M

- Cumulative net income, 10 years: EUR 1.2B

- ROIC, first three-year median: 4.6%

- ROIC, last three-year median: 5.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 0.19

- FY2018: EUR 0.17

- FY2019: EUR 0.18

- FY2020: EUR 0.16

- FY2021: EUR 0.15

- FY2022: EUR 0.17

- FY2023: EUR 0.22

- FY2024: EUR 0.23

- FY2025: EUR 0.24

### accounting: pass

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 0.61×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.40×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.93×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.7%

- FY2017: -6.6%

- FY2018: -5.4%

- FY2019: -4.2%

- FY2020: -5.1%

- FY2021: -10.8%

- FY2022: -7.8%

- FY2023: 9.0%

- FY2024: -8.7%

- FY2025: -7.1%

## Holders

## Price story

Price needs cash profits to grow 2% a year for ten years · sales +6.8%

Story as of 2026-10-16T10:00:11.007Z; price observation 2026-10-15.

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2025–2026

sales +6.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: EUR 698M 

- FY2018: EUR 670M 

- FY2019: EUR 730M 

- FY2020: EUR 705M 

- FY2021: EUR 781M 

- FY2022: EUR 763M 

- FY2023: EUR 948M 

- FY2024: EUR 951M 

- FY2025: EUR 1.0B 

- FY2026: EUR 1.1B 

### Gross margin · FY2025

gross margin 64.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 78.1% 

- FY2017: 80.8% 

- FY2018: 84.9% 

- FY2019: 77.7% 

- FY2020: 79.5% 

- FY2021: 72.6% 

- FY2022: 77.5% 

- FY2023: 69.8% 

- FY2024: 67.5% 

- FY2025: 64.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities diversified; annual sales are EUR 1 billion.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2025-12-31 (filed 2026-10-16T07:39:44.659Z); FY2025: revenue 1019640000; grossProfit 657648000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RENE.LS: REN - Redes Energéticas Nacionais, SGPS, S.A., together with its subsidiaries, engages in the transmission of electricity and natural gas in Portugal. The company operates in two segments, Electricity and Gas; and Telecommunications. It operates as a national electricity transmission network; purchases, sells, imports, and exports electricity and natural gas; manages a concession to operate a pilot area to produce electric energy from ocean waves; and operates a telecommunications network. The company also operates liquefied natural gas terminal maintenance and regasification facilities; and manages projects and ventures in the natural gas sector. In addition, it provides underground storage development, maintenance, and operation services; natural gas transport and management services; and distributes natural gas, as well as communication and sustainability, marketing, business management, business development and consulting, and IT project services. Further, the company invests in assets, shares, companies, and associations; transmits and transforms electricity in Chile, as well as participates, finances, collaborates, and conducts management of companies; and manages back offices. The company was founded in 1994 and is headquartered in Lisbon, Portugal.

### Why customers stay

Margins ranged from 64.5% to 69.8% during 2023–25; it earns 4.8% on its capital.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2023-12-31 (filed 2026-10-16T07:39:44.659Z); FY2023: grossProfit / revenue = 69.8%.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2024-12-31 (filed 2026-10-16T07:39:44.659Z); FY2024: grossProfit / revenue = 67.5%.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2025-12-31 (filed 2026-10-16T07:39:44.659Z); FY2025: grossProfit / revenue = 64.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:44.659Z); 10-year return on capital observations [[2016,0.049535333800330456],[2017,0.0464448759123394],[2018,0.043195036938239666],[2019,0.04106258525154531],[2020,0.041429048260191434],[2021,0.04087578583372038],[2022,0.04959399186029665],[2023,0.05059618402656332],[2024,0.056287356522522106],[2025,0.055228622902448586]]; median 0.047990104856334925. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 48.2% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2016-12-31 (filed 2026-10-16T07:39:44.659Z); FY2016: growth capex 0; upkeep 153920000; owner earnings 161026000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2017-12-31 (filed 2026-10-16T07:39:44.659Z); FY2017: growth capex 0; upkeep 285000; owner earnings 347631000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2018-12-31 (filed 2026-10-16T07:39:44.659Z); FY2018: growth capex 0; upkeep 156000; owner earnings 350614000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2019-12-31 (filed 2026-10-16T07:39:44.659Z); FY2019: growth capex 0; upkeep 5279000; owner earnings 348471200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:44.659Z); FY2020: growth capex 0; upkeep 170616000; owner earnings 178841400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:44.659Z); FY2021: growth capex 0; upkeep 201602000; owner earnings 136648600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2022-12-31 (filed 2026-10-16T07:39:44.659Z); FY2022: growth capex 0; upkeep 207838000; cash acquisitions 0; owner earnings 152439000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2023-12-31 (filed 2026-10-16T07:39:44.659Z); FY2023: growth capex 0; upkeep 249673000; cash acquisitions 0; owner earnings 151764600. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2024-12-31 (filed 2026-10-16T07:39:44.659Z); FY2024: growth capex 545278.7276681662; upkeep 298754721.27233183; cash acquisitions 0; owner earnings 107112278.72766817. Growth capex plus acquisitions / owner earnings = 0.005090721009255452.

- Source: https://eodhd.com/api/fundamentals/RENE.LS.json#2025-12-31 (filed 2026-10-16T07:39:44.659Z); FY2025: growth capex 9915617.886467874; upkeep 373559382.1135321; cash acquisitions 15219000; owner earnings 52186817.886467874. Growth capex plus acquisitions / owner earnings = 0.48162771566467405.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:44.659Z); Dividend observations: [[2016,90650000],[2017,90650000],[2018,113426000],[2019,113426000],[2020,113426000],[2021,113426000],[2022,144602000],[2023,102150000],[2024,102150000],[2025,104140000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 47% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RENE.LS SharesStats.PercentInsiders = 47.006 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:44.659Z); Ten-year compound average after fade. Initial solved rate 0.015210602025339193. Price 3.56; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 2.43 per share

- 2016-12: EUR 2.54 per share

- 2017-01: EUR 2.40 per share

- 2017-02: EUR 2.48 per share

- 2017-03: EUR 2.66 per share

- 2017-04: EUR 2.54 per share

- 2017-05: EUR 2.71 per share

- 2017-06: EUR 2.58 per share

- 2017-07: EUR 2.58 per share

- 2017-08: EUR 2.60 per share

- 2017-09: EUR 2.60 per share

- 2017-10: EUR 2.57 per share

- 2017-11: EUR 2.46 per share

- 2017-12: EUR 2.48 per share

- 2018-01: EUR 2.51 per share

- 2018-02: EUR 2.47 per share

- 2018-03: EUR 2.51 per share

- 2018-04: EUR 2.61 per share

- 2018-05: EUR 2.38 per share

- 2018-06: EUR 2.40 per share

- 2018-07: EUR 2.51 per share

- 2018-08: EUR 2.44 per share

- 2018-09: EUR 2.43 per share

- 2018-10: EUR 2.35 per share

- 2018-11: EUR 2.41 per share

- 2018-12: EUR 2.43 per share

- 2019-01: EUR 2.62 per share

- 2019-02: EUR 2.61 per share

- 2019-03: EUR 2.54 per share

- 2019-04: EUR 2.55 per share

- 2019-05: EUR 2.43 per share

- 2019-06: EUR 2.41 per share

- 2019-07: EUR 2.44 per share

- 2019-08: EUR 2.55 per share

- 2019-09: EUR 2.56 per share

- 2019-10: EUR 2.66 per share

- 2019-11: EUR 2.77 per share

- 2019-12: EUR 2.72 per share

- 2020-01: EUR 2.73 per share

- 2020-02: EUR 2.52 per share

- 2020-03: EUR 2.32 per share

- 2020-04: EUR 2.47 per share

- 2020-05: EUR 2.42 per share

- 2020-06: EUR 2.43 per share

- 2020-07: EUR 2.45 per share

- 2020-08: EUR 2.43 per share

- 2020-09: EUR 2.37 per share

- 2020-10: EUR 2.26 per share

- 2020-11: EUR 2.30 per share

- 2020-12: EUR 2.37 per share

- 2021-01: EUR 2.35 per share

- 2021-02: EUR 2.27 per share

- 2021-03: EUR 2.38 per share

- 2021-04: EUR 2.43 per share

- 2021-05: EUR 2.29 per share

- 2021-06: EUR 2.34 per share

- 2021-07: EUR 2.36 per share

- 2021-08: EUR 2.48 per share

- 2021-09: EUR 2.55 per share

- 2021-10: EUR 2.63 per share

- 2021-11: EUR 2.46 per share

- 2021-12: EUR 2.55 per share

- 2022-01: EUR 2.54 per share

- 2022-02: EUR 2.59 per share

- 2022-03: EUR 2.85 per share

- 2022-04: EUR 2.89 per share

- 2022-05: EUR 2.88 per share

- 2022-06: EUR 2.88 per share

- 2022-07: EUR 2.77 per share

- 2022-08: EUR 2.64 per share

- 2022-09: EUR 2.41 per share

- 2022-10: EUR 2.62 per share

- 2022-11: EUR 2.53 per share

- 2022-12: EUR 2.52 per share

- 2023-01: EUR 2.53 per share

- 2023-02: EUR 2.55 per share

- 2023-03: EUR 2.70 per share

- 2023-04: EUR 2.63 per share

- 2023-05: EUR 2.51 per share

- 2023-06: EUR 2.49 per share

- 2023-07: EUR 2.48 per share

- 2023-08: EUR 2.52 per share

- 2023-09: EUR 2.42 per share

- 2023-10: EUR 2.46 per share

- 2023-11: EUR 2.43 per share

- 2023-12: EUR 2.33 per share

- 2024-01: EUR 2.28 per share

- 2024-02: EUR 2.19 per share

- 2024-03: EUR 2.20 per share

- 2024-04: EUR 2.27 per share

- 2024-05: EUR 2.30 per share

- 2024-06: EUR 2.29 per share

- 2024-07: EUR 2.35 per share

- 2024-08: EUR 2.37 per share

- 2024-09: EUR 2.41 per share

- 2024-10: EUR 2.30 per share

- 2024-11: EUR 2.46 per share

- 2024-12: EUR 2.28 per share

- 2025-01: EUR 2.38 per share

- 2025-02: EUR 2.44 per share

- 2025-03: EUR 2.74 per share

- 2025-04: EUR 2.89 per share

- 2025-05: EUR 2.94 per share

- 2025-06: EUR 3.03 per share

- 2025-07: EUR 2.97 per share

- 2025-08: EUR 2.99 per share

- 2025-09: EUR 3.06 per share

- 2025-10: EUR 3.27 per share

- 2025-11: EUR 3.32 per share

- 2025-12: EUR 3.21 per share

- 2026-01: EUR 3.44 per share

- 2026-02: EUR 3.85 per share

- 2026-03: EUR 3.73 per share

- 2026-04: EUR 3.78 per share

- 2026-05: EUR 3.54 per share

- 2026-06: EUR 3.78 per share

- 2026-07: EUR 3.45 per share

- 2026-08: EUR 3.51 per share

- 2026-09: EUR 3.56 per share

- 2026-10: EUR 3.57 per share

## Annual estimated value (EUR per share)

- FY2017: low EUR 5.80 per share, central EUR 6.59 per share, high EUR 7.64 per share

- FY2018: low EUR 5.53 per share, central EUR 6.29 per share, high EUR 7.30 per share

- FY2019: low EUR 5.75 per share, central EUR 6.54 per share, high EUR 7.60 per share

- FY2020: low EUR 5.62 per share, central EUR 6.38 per share, high EUR 7.40 per share

- FY2021: low EUR 6.72 per share, central EUR 7.56 per share, high EUR 8.69 per share

- FY2022: low EUR 3.72 per share, central EUR 4.16 per share, high EUR 4.74 per share

- FY2023: low EUR 3.15 per share, central EUR 3.58 per share, high EUR 4.15 per share

- FY2024: low EUR 2.78 per share, central EUR 3.15 per share, high EUR 3.66 per share

- FY2025: low EUR 2.70 per share, central EUR 3.08 per share, high EUR 3.57 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:45:28.105Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.