Repsol (REP:EUR7.82) offers 3rd highest dividend yield 03 July 2020

NEWS BITES - EUROPE

Dateline: Friday July 03, 2020

Repsol, S.A. (MA:REP), Spain's 2nd largest Energy company by market cap, is currently the 3rd highest dividend yielding stock in the IBEX 35 Index . The dividend yield of 10.95% is 23.8 times the triple-A bond yield of 0.46%. The final dividend for FY 2019 was 47.0c. Dividend for FY 2019 was up 4.4% from 45.0c in the previous year FY 2018. In the Spanish market, Repsol's stock's relative price strength percentile is rising at 24 for 6 months, 34 for 3 months, and 48 for 30 days. A price rise combined with a rising relative strength is a bullish signal.

Bullish Turning Points

Price/Earnings of 6.1 close to historical low

The P/E of 6.1 is 0.3 times the highest average P/E of 24 in the last five years. This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".

Dividend Yield increases to 10.9%

Based on dividends of 85.60c per share for the trailing twelve months and the last price of EUR7.82 the dividend yield is 10.9%, a significant improvement from 10.7% on the previous day.

Williams % R

The stock is oversold according to the Williams % R indicator of -82.7, suggesting the price is close to its 14-day low. The Williams % R was previously -55.4.

Stock Summary (traded in EUR)

Currency1 EUR = 1.12 USD Dividend Yield10.9%
Jul 03 closeEUR7.82SectorEnergy
Ave Daily Volume8,583,886 sharesShares Outstanding1,566,044,000
52-Week Range5.29 - 13.19Market CapEUR12.2 billion [USD13.8 billion]
P/E6.1EPS Growth (FY2018 vs FY2017)12.4%

ADR Summary (traded in USD)

Home ExchangeSpainRatio1 ADR equals 1 ordinary share
CodeREPYYTypeSponsored
ISINUS76026T2050Jul 02 closeUSD8.92
CUSIP76026T205Ave Daily Volume259,051 ADRs
*No. Held by Institutions4,307,32752-Week Range5.92 - 15.80
% of shares outstanding0.27%

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
MadridREPEUR7.828,583,88498.60.5
XetraREPEUR8.0234,6941.41.9
Total100.00

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Financials Summary: EPS up 12.4% to EUR1.29 in FY2018

+ Net profit was up 10.4% from USD2.4 billion in FY2017 to USD2.6 billion in FY2018.

+ Earnings Per Share (EPS) was up 12.4% from EUR1.15 in FY2017 to EUR1.29 in FY2018.

Year ended DecFY2018FY2017FY2016
Sales (USD B)55.846.342
Pretax (USD B)3.73.52.1
Net (USD B)2.62.41.9
EPS (EUR)1.28731.14530.9307

Click on links to download REP data

Financials in xls

News Archives Past 4 years in HTML

Patents past quarter in xls

INDEX

SECTION 1 News In The Past Month

SECTION 2 Corporate Profile and Independent Ratings

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

Click here to view the following

SECTION 7 Patents

SECTION 8 Dividend

SECTION 9 Financials FY 2018

SECTION 10 Peer Group Analysis & Ranking

SECTION 11 News Archives (Dec 2018 - Feb 2020)

Glossary

SECTION 1 News In The Past Month

1.1 Share Capital

June 15: Repsol announces Bonus issue

Repsol has announced a 18 for 1 bonus issue of shares, on Tuesday, June 16.

SECTION 2 Corporate Profile and Independent Ratings

2.1 Activities

Repsol, S.A. is an integrated oil and gas company engaged in all aspects of the petroleum business, including exploration, development and production of crude oil and natural gas, transportation of petroleum products, liquefied petroleum gas (LPG) and natural gas, petroleum refining, petrochemical production and marketing of petroleum products, petroleum derivatives, petrochemicals, LPG and natural gas. The Company's segments include Exploration and Production (E&P), Refining and Marketing, Chemicals, and Gas and Electricity.

2.2 Contact Details

Websitehttp://www.repsol.com/es_en/
Physical AddressPaseo de la Castellana 278-280 Madrid, 28046 Spain
Phone34-91-3488100
Fax36-91-3142821

2.3 Industry & Sector

Classification LevelName of Sector
Economic SectorEnergy

2.4 Independent Ratings

+ Top 100 Polluters:

According to environmental non-profit Carbon Disclosure Project (CDP) just 100 companies have been the source of more than 70% of the world's greenhouse gas emissions from 1988 to 2015. The CDP ranked Repsol, S.A. 46 [rank 1 is worst] in the top 100 polluters. Repsol, S.A. contributed .33% of global industrial greenhouse gas emissions in that period.

+ Platts 250:

It is the 35th largest company in the Platts Top 250 Global Energy Company Rankings.

+ Fortune 500:

It was ranked 306 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 250 in 2016.

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 85.

+ FT 500:

It is the 92nd largest by revenue in the FT Global 500.

+ Forbes 2000:

It is the 135th largest by revenue in the Forbes Global 2000.

+ IHS Energy 50:

It was ranked 45 in IHS Energy's list of Top 50 Energy Companies 2013; an improvement over a year from rank 47 in 2012.

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 0.5% Past Week

The price ranged between a low of 7.77 on Friday, Jun 26 and a high of 8.04 on Thursday, Jul 02.

DayRepsolClose price [EUR]Price change %Relative change %Comment
ThursdayUp 3.2% in 2 days8.041.9-1.8Week-high of 8.04 Top Rise
WednesdayOffers 3rd highest dividend yield7.891.31.3Price rise on beating relative strength
TuesdayCloses at 7.3% below VWAP7.79-1.0-0.4Price fall on slipping relative strength
MondayOffers 3rd highest dividend yield7.871.30.5Price/MAP50 above 1
FridayOffers 3rd highest dividend yield7.77-2.9-1.7Week-low of 7.77 Steepest Fall

3.2 Rank in the top 19% by Relative Valuation in the Spanish market

DescriptionValueRank
Dividend Yield %10.9%In Top 6%
P/E * P/NTA2.85In Top 11%
Price to Sales0.2In Top 12%
Price to Book Value0.5In Top 14%
Price/Earnings6.1In Top 19%

3.3 Uptrend

Beta > 1 combined with price rise. The Beta of the stock is 1.1.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 7.95 minus the 26-day EMA of 7.94 is positive, suggesting a bullish signal.

3.4 Undervaluation

Price/Earnings:

Repsol stock is trading at the sixth lowest P/E multiple in the IBEX 35 Index.

Price/Earnings of 6.1 < sector avg of 20.4:

- Price/Earnings of 6.1 versus sector average of 20.4 and market average of 10.2.

Earnings Yield of 16.5% > Spanish ave of 9.8% > Bond Yield of 0.5%:

- Earnings yield of 16.5% is greater than the Spanish average earning yield of 9.8%.

- The earnings yield of 16.5% is 36.2 times the 10-year bond yield of 0.5%.

(All figures in %)

Earnings Yield16.5
Spanish avg9.8
Dividend Yield10.9
Bond Yield0.5

Dividend Yield:

Repsol stock is the third highest dividend yielding stock in the IBEX 35 Index.

Dividend Yield > Bond Yield of 0.46%:

The dividend yield of 10.95% is 23.8 times the triple-A bond yield of 0.46%. The times factor of 23.8 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield10.95
Bond Yield0.46
Spread10.49

Dividend Yield of 10.9% > Index avg of 3.8%:

- The relative yield of the stock, defined by its yield of 10.9%, divided by average yield of dividend yielding stocks in the IBEX 35 Index of 3.8% is 291.2%. This suggests the stock is undervalued in dividend yield terms.

Price to Book of 0.5 < Sector average of 2.0:

- The Price to Book of 0.5 is lower than average of 2.0 for the Energy sector and 2.3 for the Total Spanish Market.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stocks by value of Q Ratio.

- The company is cash rich with Cash to Market Capitalisation at 14.0%.

Brand Value/Enterprise Value:

- Brandirectory have estimated Repsol brand value at EUR2.8 billion (US$3.1 billion). The Brand Value represents an impressive 10.3% of the estimated Enterprise Value of EUR26.7 billion (US$30 billion). Enterprise Value is defined as MCap of EUR12.2 billion plus net debt of EUR14.5 billion.

3.5 Other Bullish Signals

- As per the Du Pont analysis, Return on Equity is less than stellar at 6.3%. This is computed as net profit margin of 3.9% times asset turnover [sales/assets] of 0.82 times leverage factor [total assets/shareholders' equity] of 2.0.

3.6 Oversold/Bullish Signals:

- The stock is oversold according to the Williams % R indicator of -82.7, suggesting the price is close to its 14-day low of EUR7.64.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 12% by Size in the Spanish market

DescriptionValueRank
Annual RevenueEUR49.7 billion (US$55.8 billion)In Top 3%
Ave daily TurnoverEUR35.3 million (US$39.6 million)In Top 5%
MCapUSD13.8 billionIn Top 12%

4.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 4.9%

TSR %5 yrs10 yrs
REP.MA56.3

4.3 Present Value of EUR1000 Invested in the Past [3 Mo, 3 Yrs]; The Best Periods with PVEUR1000 > 1,092

PVEUR1,0003 mo ago3 yrs ago
REP.MAEUR1,119EUR1,093
Energy sectorEUR1,112EUR1,139
IBEX 35 IndexEUR1,139EUR698

4.4 P/E/G < 1

The price earnings ratio of 6.1 divided by trailing twelve months eps growth of 12.4% corresponds to an attractive P/E/G of 0.5 times; being less than the value benchmark of 1.0.

EPS Growth (%)12.4
P/E/G0.49
P/E6.07

4.5 Low Debt to Equity (%) and Reducing

The debt to equity ratio of 45.9% is under a safe benchmark figure of 50%. Moreover, it has improved in the past two years.

YearsDebt to Equity (%)
Dec 201845.87
Dec 201749.24
Dec 201655.49
Dec 201550.04
Dec 201446.77

4.6 Increased VWAP, up 53% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 53.2% to EUR9.69. .

Past five years, 12 months ended Jul 03 (EUR)

YearHigh PriceVWAPLow Price
202013.199.695.29
201912.9711.7810.51
201812.6510.58.81
20179.638.316.6
20169.436.334.61

4.7 Revenue, EPS, and EBITDA:

5-years average annualized earnings growth rate of 64.5%

- Revenue growth rate has shown signs of recovery in recent years. [compared with previous year, all figures in %]

FYRevenue GrowthEPS GrowthEBITDA Growth
201821127
20171023-
2016-6--
2015-17--

4.8 Satisfies six criteria of Benjamin Graham

- The P/E of 6.1 multiplied by the P/NTA of 0.5 is 2.9. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 16.5% is 36.2 times the triple-A bond yield of 0.5%.

- The P/E of 6.1 is 0.3 times the highest average P/E of 24 in the last five years. This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".

- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 24.1 times the triple-A bond yield of 0.5%.

- "A stock price down to at least two-thirds of tangible book value per share"; the price is 0.48 times tangible book value per share of EUR16.21.

-"Total debt less than tangible book value"; total debt of EUR14.2 billion (US$16.2 billion) is less than tangible book value of EUR25.8 billion (US$29.5 billion).

4.9 Satisfies 7 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in current ratio from 1.2 to 1.4.

- Reduction in total shares on issue.

- Improvement in gross margin [from 99.5% to 99.7%].

- Improvement in asset turnover [growth in revenue of 29.2% exceeded growth in assets of 1.5%].

4.10 Year-over-year (%) Change in Dividend:

Final dividend for FY 2019 was 47.0c. The year-on-year change was up 4.4% from 45.0c in the previous year FY 2018.

FinalFY 2018FY 2019
Dividend (EUR Cents)45.047.0

SECTION 5 Today's Bearish Signals

5.1 Downtrend

Today's Volatility:

Today its volatility (highest price minus lowest price/lowest price) of 3.3% was 1.1 times the average daily volatility of 3.0%, up from 2.3% on Thursday. A fall in the price on high volatility is a bearish signal.

Price/Moving Average Price of 0.78:

- The Price/MAP 200 of 0.78 for Repsol is lower than the Price/MAP 200 for the IBEX 35 Index of 0.94.

- The price to 200-day MAP ratio is 0.78, a bearish indicator. In the past 200 days this ratio has been under 0.78, 68 times suggesting further downside. The 50-day MAP of EUR7.77 is lower than the 200-day MAP of EUR10.04, another bearish indicator.

Trailing Relative Strength (6 months) at 24 percentile:

- The stock has a 6-month relative strength of 24 in the Spanish market of 121 stocks indicating it is trailing 76% of the market.

5.2 Other Bearish Signals

- Total Liabilities/EBITDA of 9 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- Net profit margin has averaged 4.1% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

SECTION 6 Ongoing Bearish Parameters

6.1 Past two-years

- The shares fell 88.89c (7.1%) a year ago which accelerated to EUR3.78 (32.6%) in the past year.

6.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 3.1%

TSR %1 yr3 yrs
REP.MA-26.63

6.3 Present Value of EUR1000 Invested in the Past Year; The Worst Period with PVEUR1000 < 735

PVEUR1,0001 yr ago
REP.MAEUR734
Energy sectorEUR774
IBEX 35 IndexEUR788

6.4 Past year: price fall of 32.6%

1-Year price change of -32.6% for Repsol underperformed the change of -20.2% in the IBEX35 index for a relative price change of -12.3%.

Price Change %Year
Repsol-32.6
Energy sector-22.2
IBEX35 index-20.2

6.5 Moving Annual Return of -25.2% in the past year:

Moving Annual Return was -25.2% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 8.4%

REPClose (EUR)Dividends (EUR)Capital Gain / (Loss) %% YieldAnnual Return %
Jul 037.820.86(32.6)7.4(25.2)
1 Yr ago11.60.8(6.1)6.50.4
2 Yrs ago12.350.7238.98.147.0
3 Yrs ago8.890.624.78.533.1
4 Yrs ago7.130.59(20.1)6.6(13.5)

Close 5 years ago EUR8.93

6.6 MCap: 5-Year Decrease of EUR10 billion [USD11 billion]

In the past 5 years Market Capitalization has decreased by EUR9.9 billion (45%) from EUR22.1 billion to EUR12.2 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 3 out of 5 years.

PriceMCap (EUR B)MCap (US$ B)
LastEUR7.8212.213.8
1 Year agoEUR11.602123.8
2 Years agoEUR12.352630.3
3 Years agoEUR8.8919.622.4
4 Years agoEUR7.1316.818.7
5 Years agoEUR8.9322.124.5

6.7 Total Shares on Issue: 5-Year Increase of 21.3%

In the past 5 years total shares on issue have increased by 280 million (21.3%) from 1.3 billion to 1.6 billion. Buybacks have averaged 4.8 million shares [0.4%] per financial year. Based on a dynamic start date of 5 years ago, there has been only 1 decline in issued capital over the last 5 years. An increase in total shares on issue is an unfavourable indicator in Joseph Piotroski's 9 indicators.

Year End (Dec 31)Total Shares on Issue
20181,593,000,000
20171,622,000,000
20161,538,000,000
20151,487,000,000
20141,440,000,000
20131,313,000,000

6.8 Declining Volume, down 37% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 37.2% to 8.6 million shares.

Avg. Daily Volume Traded 12 months ended Jul 03, million shares

YearADVT
20208.6
20197.2
20186.9
20177.4
201613.7

6.9 Declining share turnover, down 27% in 5 years

In the past five years, average daily share turnover has decreased 27.4% to EUR82.9 million (US$93.1 million). This suggests decreased liquidity.

Past five years, 12 months ended Jul 03 (EUR million)

YearAverage Daily Turnover
202082.9
201993.7
201888.8
201779.9
2016114.2

Glossary

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabiliites (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com