REP
💰 Repsol’s balance sheet has been significantly strengthened, with reduced debt and a 25% reduction in capital via buybacks.
✅ The company has a solid strategic plan for 2024-2027, focusing on investments in refinery reconversion and new-generation fuels.
⛽ Repsol is the largest panadero (baker) in Spain, with high margins in its retail business.
📉 Despite strong fundamentals, the stock remains undervalued, with the market seemingly ignoring the value of its investments.
@Academiadeinversion:
“Repsol is a fascinating case. With the war in Ukraine, it’s not that they won the lottery, but they achieved record levels of profitability. Repsol, from 2021 to 2023, saw its results explode, reduced debt to minimum levels, almost insignificant, almost taking the debt to zero. They managed to reduce the capital by 25% by buying back shares. They also sold a minority stake in their oil and gas business, which is the most commodity-like business, and with that valuation, it already covered 100% of the company’s value. The value of the company has been reduced by 30% compared to the levels it was trading at in 2019, which is fascinating because, at the balance sheet level, it has been reconverted. They have reduced the capital by 25% via buybacks, and they have distributed a significant amount of dividends, which cumulatively will be about 30% of the company’s value, and yet the stock is still destroyed. They announce a strategic plan from 2024 to 2027 in which they basically say they are going to invest between 20 and 22 billion. Basically, people don’t realize that’s what the company is worth. It discounts that the capex is being thrown away, that each investment is not going to be worth anything, and that is a barbarity, having the balance sheet they have, distributing the amount of dividends and buybacks they are doing to the shareholder, and really finding industrial opportunities that can really go very well.”
Watch the exact part of the video where Jorge talks about Repsol here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Repsol (REP) at the following link. REP stock.
