Repsol: Still One Of The Best Integrated Energy Stocks In Europe

2025-09-14 10:40:00 ET

Introduction

Repsol ( REPYF ) ( REPYY ) is Spain’s largest and best-known company in the energy sector, and I have been very bullish on the company since the first quarter of 2021. In 2021, I thought the company was trading at a forward FCF yield of around 30% for the current financial year, and that Repsol would not need to take on additional debt to execute its growth plans. Fast forward to today, and despite the disappointing oil price, Repsol is indeed expecting to generate north of 2 EUR/share in free cash flow, and although this is lower than I initially expected, its balance sheet has gotten much safer while this year’s dividend is approximately 30% higher than what the company was eyeing when it published its long-term outlook. As the stock is also up about 100%, I am a happy shareholder, but I still feel Repsol is undervalued. ...

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