3.73 EUR (+6.2%)
9 analysts
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REN is the operator of Portugal's electricity and gas transmission network, with a regulated business model that generates stable revenue through access tariffs and fees.
Listed on Euronext Lisboa · Symbol RENE.LS · ELI: RENE · Currency EUR
Key points
from its scores- ✓Favourable backdrop8.0
- ✓Attractive dividend7.9
- ✓Strong growth7.7
- ✕Little competitive advantage4.1
- !Balance sheet could be stronger5.6
AI analysis
bottom line, main risk, context and newsThe combination of high debt and rising rates limits appeal, but regulatory stability and the dividend provide support.
REN has an acceptable financial health (6.23) but with high leverage (ND/EBITDA 4.7x) which, in a rising ECB rate environment, increases refinancing risk. Its valuation is reasonable (P/E 12.55) and it offers an attractive dividend (3.96% net), although the quality of its moat is limited (ROIC 6.33%).
The main risk is the high leverage (ND/EBITDA 4.7x) in a rising European interest rate environment, which could pressure financial health and the dividend if refinancing becomes more expensive.
Context and risks
REN operates in Portugal, where the regulatory framework for utilities is under active review and there is a moderate governance risk. The company has high net debt (ND/EBITDA of 4.7x), making it vulnerable to a rising interest rate environment in Europe, as the ECB has raised rates and may continue to do so. This combination of regulatory risk and financial leverage justifies a negative adjustment to the base risk.
Is REN stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 29% below the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.6 | 19.1 | −34% |
| EV / EBITDA | 9.3 | 12.2 | −24% |
| Price / book | 1.5 | 1.9 | −23% |
| Price / sales | 2.1 | 2.6 | −19% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.2 out of 10 (median for Utilities: 4.8).
Average analyst target: 3.73 EUR, +6.2% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.6 (sector 5.8), Growth 7.7 (sector 5.8).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 12.6
- Forward P/E
- 14.5
- EV / EBITDA
- 9.3
- Price / book
- 1.5
- Price / sales
- 2.1
- PEG
- 11.80
- Market cap
- 2.3B EUR
- Enterprise value
- 4.7B EUR
Profitability
- ROE
- 12.4%
- ROA
- 2.8%
- ROIC (approx.)
- 6.3%
- Gross margin
- 53.4%
- Operating margin
- 22.5%
- Net margin
- 16.8%
- Free cash flow
- 13.1M EUR
- FCF yield
- 0.6%
- Cash conversion
- 3%
Solvency
- Total debt
- 2.4B EUR
- Net debt
- 2.4B EUR
- Cash
- 18.0M EUR
- EBITDA
- 507.8M EUR
- Net debt / EBITDA
- 4.70
- Debt / equity
- 154.41
- Current ratio
- 0.32
- Quick ratio
- 0.28
Growth
- Revenue growth
- +23.2%
- Earnings growth
- +12.5%
- EPS (TTM)
- 0.28 EUR
- EPS (forward)
- 0.24 EUR
Dividend
- Dividend yield
- 4.6%
- Payout
- 57.1%
Risk and market
- Beta
- 0.25
- Analyst consensus
- none (9)
- Target price
- 3.73 EUR
- 52-week range
- 3.04 – 3.95
Recent news
All RENE.LS news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about REN
Is REN stock cheap or expensive?
On P/E and EV / EBITDA, it trades 29% below the Utilities median on average. Valuation score: 6.2 out of 10 (median for Utilities: 4.8). Average analyst target: 3.73 EUR, +6.2% versus the price. This is not investment advice.
What score does REN get on MeridIAn Screener?
It scores 6.5 out of 10, rank 565 of 2,130 (better than 72% of the companies analysed). Its strongest category is Risk & Context (8.0) and its weakest, Quality / Moat (4.1). Analysis of 08/10/2026.
What is REN's P/E ratio?
Its P/E is 12.6: the share price equals 12.6 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 14.5.
How much is REN worth on the stock market?
Its market capitalisation is 2.3B EUR and its enterprise value, debt included, is 4.7B EUR.
How much debt does REN have?
Its net debt (debt minus cash) is 2.4B EUR. That is 4.70 times its EBITDA; the Utilities median is 5.33.
Does REN pay a dividend?
Yes: its dividend yield is 4.55% and it pays out 57% of its earnings.
How has REN stock performed over the last year?
It has risen 18.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 3.04 and 3.95 EUR. Past performance does not guarantee future results.
What do analysts think of REN?
9 analysts cover it; their average recommendation is “none” and their average target is 3.73 EUR (+6.2% versus the price). It is an estimate, not market data.