REXEL SA (RXL.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RXL - FR0010451203 - Common Stock
35.3 EUR
-0.55 (-1.53%)
RXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Trading Companies & Distributors industry. While RXL is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, RXL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- RXL had positive earnings in the past year.
- RXL had a positive operating cash flow in the past year.
- RXL had positive earnings in 4 of the past 5 years.
- RXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RXL's Return On Assets of 2.41% is on the low side compared to the rest of the industry. RXL is outperformed by 70.00% of its industry peers.
- RXL has a worse Return On Equity (6.61%) than 60.00% of its industry peers.
- RXL's Return On Invested Capital of 7.17% is in line compared to the rest of the industry. RXL outperforms 55.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RXL is below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 6.61% | ||
| ROIC | 7.17% |
ROA(3y)5.06%
ROA(5y)3.54%
ROE(3y)12.52%
ROE(5y)8.76%
ROIC(3y)8.27%
ROIC(5y)7.38%
1.3 Margins
- RXL has a Profit Margin of 1.76%. This is in the lower half of the industry: RXL underperforms 65.00% of its industry peers.
- RXL's Profit Margin has improved in the last couple of years.
- The Operating Margin of RXL (5.62%) is comparable to the rest of the industry.
- RXL's Operating Margin has improved in the last couple of years.
- The Gross Margin of RXL (21.94%) is worse than 70.00% of its industry peers.
- In the last couple of years the Gross Margin of RXL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.62% | ||
| PM (TTM) | 1.76% | ||
| GM | 21.94% |
OM growth 3Y-4.74%
OM growth 5Y4.03%
PM growth 3Y-24.37%
PM growth 5Y3.4%
GM growth 3Y-2.32%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RXL is creating some value.
- The number of shares outstanding for RXL has been reduced compared to 1 year ago.
- Compared to 5 years ago, RXL has less shares outstanding
- Compared to 1 year ago, RXL has a worse debt to assets ratio.
2.2 Solvency
- RXL has an Altman-Z score of 2.85. This is not the best score and indicates that RXL is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of RXL (2.85) is worse than 65.00% of its industry peers.
- RXL has a debt to FCF ratio of 8.67. This is a slightly negative value and a sign of low solvency as RXL would need 8.67 years to pay back of all of its debts.
- RXL has a worse Debt to FCF ratio (8.67) than 60.00% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that RXL is somewhat dependend on debt financing.
- RXL's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. RXL is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.07
WACC6.7%
2.3 Liquidity
- RXL has a Current Ratio of 1.42. This is a normal value and indicates that RXL is financially healthy and should not expect problems in meeting its short term obligations.
- RXL has a Current ratio of 1.42. This is in the lower half of the industry: RXL underperforms 75.00% of its industry peers.
- RXL has a Quick Ratio of 1.42. This is a bad value and indicates that RXL is not financially healthy enough and could expect problems in meeting its short term obligations.
- RXL has a Quick ratio of 0.93. This is amonst the worse of the industry: RXL underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The earnings per share for RXL have decreased strongly by -56.11% in the last year.
- RXL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.65% yearly.
- The Revenue has been growing slightly by 0.69% in the past year.
- RXL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.01% yearly.
EPS 1Y (TTM)-56.11%
EPS 3Y-16.82%
EPS 5Y10.65%
EPS Q2Q%-24.7%
Revenue 1Y (TTM)0.69%
Revenue growth 3Y9.5%
Revenue growth 5Y7.01%
Sales Q2Q%1.51%
3.2 Future
- Based on estimates for the next years, RXL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.54% on average per year.
- RXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y-0.37%
EPS Next 2Y6.94%
EPS Next 3Y8.52%
EPS Next 5Y10.54%
Revenue Next Year0.72%
Revenue Next 2Y1.97%
Revenue Next 3Y2.79%
Revenue Next 5Y3.83%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- RXL is valuated quite expensively with a Price/Earnings ratio of 31.24.
- Based on the Price/Earnings ratio, RXL is valued a bit more expensive than 60.00% of the companies in the same industry.
- RXL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.03, the valuation of RXL can be described as correct.
- RXL's Price/Forward Earnings ratio is in line with the industry average.
- RXL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RXL is valued a bit cheaper than 75.00% of the companies in the same industry.
- RXL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RXL is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.02 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.93
EPS Next 2Y6.94%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.40%, RXL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.98, RXL pays a better dividend. On top of this RXL pays more dividend than 90.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RXL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
- The dividend of RXL is nicely growing with an annual growth rate of 22.29%!
Dividend Growth(5Y)22.29%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- RXL pays out 104.57% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RXL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.57%
EPS Next 2Y6.94%
EPS Next 3Y8.52%
REXEL SA / RXL.PA FAQ
What is the ChartMill fundamental rating of REXEL SA (RXL.PA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to RXL.PA.
What is the valuation status for RXL stock?
ChartMill assigns a valuation rating of 3 / 10 to REXEL SA (RXL.PA). This can be considered as Overvalued.
Can you provide the profitability details for REXEL SA?
REXEL SA (RXL.PA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of REXEL SA (RXL.PA) stock?
The Price/Earnings (PE) ratio for REXEL SA (RXL.PA) is 31.24 and the Price/Book (PB) ratio is 2.06.
Can you provide the dividend sustainability for RXL stock?
The dividend rating of REXEL SA (RXL.PA) is 5 / 10 and the dividend payout ratio is 104.57%.