ENXTBR:REC

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Executive Summary

Recticel SA/NV manufactures and markets polyurethane foams for the flexible foams, bedding, insulation, and automotive applications.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Recticel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

REC

3.7%

BE Chemicals

2.0%

BE Market


1 Year Return

28.0%

REC

6.4%

BE Chemicals

-18.9%

BE Market

Return vs Industry: REC exceeded the Belgian Chemicals industry which returned 2.1% over the past year.

Return vs Market: REC exceeded the Belgian Market which returned -20.6% over the past year.


Shareholder returns

RECIndustryMarket
7 Day2.1%3.7%2.0%
30 Day5.7%-4.8%-0.6%
90 Day43.7%7.1%15.8%
1 Year30.9%28.0%9.0%6.4%-17.6%-18.9%
3 Year43.0%34.7%-12.7%-18.2%-24.4%-29.0%
5 Year87.5%70.4%19.8%2.1%-17.9%-26.7%

Price Volatility Vs. Market

How volatile is Recticel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Recticel undervalued compared to its fair value and its price relative to the market?

20.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REC (€9.05) is trading above our estimate of fair value (€8.2)

Significantly Below Fair Value: REC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: REC is good value based on its PE Ratio (20.1x) compared to the BE Chemicals industry average (38.5x).

PE vs Market: REC is poor value based on its PE Ratio (20.1x) compared to the Belgian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: REC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (1.8x) compared to the BE Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Recticel forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's earnings are forecast to decline over the next 3 years (-5.9% per year).

Earnings vs Market: REC's earnings are forecast to decline over the next 3 years (-5.9% per year).

High Growth Earnings: REC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: REC's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: REC's revenue is forecast to decline over the next 3 years (-5.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REC's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Recticel performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REC has a large one-off loss of €7.8M impacting its December 31 2019 financial results.

Growing Profit Margin: REC's current net profit margins (2.4%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: REC has become profitable over the past 5 years, growing earnings by 39.1% per year.

Accelerating Growth: REC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: REC had negative earnings growth (-14.2%) over the past year, making it difficult to compare to the Chemicals industry average (-14.2%).


Return on Equity

High ROE: REC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Recticel's financial position?


Financial Position Analysis

Short Term Liabilities: REC's short term assets (€300.6M) do not cover its short term liabilities (€332.3M).

Long Term Liabilities: REC's short term assets (€300.6M) exceed its long term liabilities (€194.8M).


Debt to Equity History and Analysis

Debt Level: REC's debt to equity ratio (44.1%) is considered high.

Reducing Debt: REC's debt to equity ratio has reduced from 105.6% to 44.1% over the past 5 years.

Debt Coverage: REC's debt is well covered by operating cash flow (55%).

Interest Coverage: REC's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

What is Recticel current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REC's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Belgian market (2.5%).

High Dividend: REC's dividend (2.65%) is low compared to the top 25% of dividend payers in the Belgian market (5.34%).


Stability and Growth of Payments

Stable Dividend: REC's dividend payments have been volatile in the past 10 years.

Growing Dividend: REC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.3%), REC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REC's dividends in 3 years are forecast to be well covered by earnings (48.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Olivier Chapelle (56 yo)

no data

Tenure

€1,490,866

Compensation

Mr. Olivier Chapelle is a Group General Manager of Bedding at Recticel SA since January 20, 2017. Experience: • Chief Executive Officer – Recticel 12/2009 – Present • Chief Executive Officer – Wagon Aut ...


CEO Compensation Analysis

Compensation vs Market: Olivier's total compensation ($USD1.76M) is above average for companies of similar size in the Belgian market ($USD420.80K).

Compensation vs Earnings: Olivier's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Chapelle
CEO, MDno data€1.49mno data
Jean-Pierre Mellen
Chief Financial Officer18.33yrsno data0.065%
€ 325.8k
Betty Bogaert
Chief Information & Digitalisation Officerno datano data0.030%
€ 149.3k
Dirk Verbruggen
General Counsel7.67yrsno datano data
Bart Massant
Chief Human Resources Officerno datano datano data
Jean-Pierre De Kesel
Chief Sustainable Innovation Officer4.58yrsno datano data
François Petit
Chief Procurement Officer9.25yrsno data0.021%
€ 106.9k
Michel De Smedt
Communications & Investor Relations Officerno datano datano data
Jörg Söltzer
Managing Director - Bedding Germanyno datano datano data
Martin Kruse
Managing Director of Recticel Automobilsysteme Gmbhno datano datano data

8.5yrs

Average Tenure

Experienced Management: REC's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Olivier Chapelle
CEO, MDno data€1.49mno data
Luc Missorten
Independent Director5.25yrs€85.00kno data
Frederic Van Gansberghe
Non-Executive Director6.25yrs€47.50kno data
Ingrid Merckx
Independent Director8.25yrs€52.50kno data
Johnny Thijs
Independent Chairman5.25yrs€140.00kno data
Benoit Deckers
Non-Executive Director5.5yrs€67.50kno data
Kurt Pierloot
Independent Director5.25yrs€60.00kno data
Carla Sinanian
Independent Non-Executive Director0.25yrno datano data
Elisa Vlerick
Independent Non-Executive Director1.25yrs€18.86kno data

5.3yrs

Average Tenure

56yo

Average Age

Experienced Board: REC's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Recticel SA/NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Recticel SA/NV
  • Ticker: REC
  • Exchange: ENXTBR
  • Founded: 1896
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: €499.665m
  • Shares outstanding: 55.21m
  • Website: https://www.recticel.com

Number of Employees


Location

  • Recticel SA/NV
  • avenue Bourget, 42
  • Brussels
  • Brussels
  • 1130
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RECENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1992
RCZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NHVLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
RECBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Recticel SA/NV manufactures and markets polyurethane foams for the flexible foams, bedding, insulation, and automotive applications. The company operates through four segments: Flexible Foams, Bedding, Ins ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 21:42
End of Day Share Price2020/08/12 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.