DB:RAY

Stock Analysis Report

Executive Summary

Rallye SA, together with its subsidiaries, engages in the food, non-food e-commerce, and sporting goods retailing activities in France and internationally.


Snowflake Analysis

Fair value unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

12.5%

RAY

3.8%

DE Consumer Retailing

7.2%

DE Market


1 Year Return

-30.5%

RAY

-9.3%

DE Consumer Retailing

-17.5%

DE Market

Return vs Industry: RAY underperformed the German Consumer Retailing industry which returned -9% over the past year.

Return vs Market: RAY underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

RAYIndustryMarket
7 Day12.5%3.8%7.2%
30 Day-7.0%-7.4%-22.3%
90 Day-25.7%-11.4%-26.1%
1 Year-21.7%-30.5%-5.9%-9.3%-14.9%-17.5%
3 Year-49.3%-61.2%-3.2%-12.8%-18.7%-25.7%
5 Year-66.5%-79.8%-4.6%-19.2%-17.8%-29.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAY (€7.21) is trading below our estimate of fair value (€69.21)

Significantly Below Fair Value: RAY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAY is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: RAY is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAY is good value based on its PB Ratio (0.5x) compared to the XE Consumer Retailing industry average (1.4x).


Next Steps

Future Growth

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

152.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RAY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RAY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RAY's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: RAY's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rallye performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAY is currently unprofitable.

Growing Profit Margin: RAY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAY is unprofitable, and losses have increased over the past 5 years at a rate of -13.9% per year.

Accelerating Growth: Unable to compare RAY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAY is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2.2%).


Return on Equity

High ROE: RAY has a negative Return on Equity (-1.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rallye's financial position?


Financial Position Analysis

Short Term Liabilities: RAY's short term assets (€11.5B) do not cover its short term liabilities (€16.3B).

Long Term Liabilities: RAY's short term assets (€11.5B) do not cover its long term liabilities (€12.2B).


Debt to Equity History and Analysis

Debt Level: RAY's debt to equity ratio (142.9%) is considered high.

Reducing Debt: RAY's debt to equity ratio has increased from 106.9% to 142.9% over the past 5 years.


Balance Sheet

Inventory Level: RAY has a high level of physical assets or inventory.

Debt Coverage by Assets: RAY's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RAY has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RAY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Rallye's current dividend yield, its reliability and sustainability?

14.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAY's dividend (14.88%) is higher than the bottom 25% of dividend payers in the German market (1.66%).

High Dividend: RAY's dividend (14.88%) is in the top 25% of dividend payers in the German market (4.86%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RAY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.6yrs

Average board tenure


CEO

Franck Hattab (48yo)

2.92s

Tenure

€837,732

Compensation

Mr. Franck Hattab serves as General Manager at Rallye SA. since April 03, 2017. Mr. Hattab served as Deputy Chief Executive Officer of Rallye Société Anonyme since February 28, 2013. He served as a Deputy  ...


CEO Compensation Analysis

Compensation vs Market: Franck's total compensation ($USD928.85K) is about average for companies of similar size in the German market ($USD1.11M).

Compensation vs Earnings: Franck's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jean-Charles Naouri
Chairman of the Board21.92yrs€10.00k0.00071% 2.5k
Jacques Dumas
Director29.67yrs€1.06m0.053% 184.8k
Christian Paillot
Non-Voting Director2.83yrs€12.00k0.0020% 7.1k
Jean de Courcel
Non-Voting Director2.83yrs€20.00k0.00072% 2.5k
Jean-Paul Onillon
Chairman of the Board of Directors - Groupe GO Sport6.42yrsno datano data
Didier Lévêque
Director11.75yrs€910.25k0.17% 595.6k
Philippe Charrier
Independent Director10.75yrs€50.00k0.0026% 9.2k
Odile Muracciole
Director8.83yrs€584.80k0.14% 478.5k
Virginie Grin
Director3.83yrs€381.00k0.10% 356.2k
Catherine Fulconis
Independent Director5.83yrs€40.00k0.00092% 3.2k

7.6yrs

Average Tenure

64yo

Average Age

Experienced Board: RAY's board of directors are considered experienced (7.6 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

Rallye SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rallye SA
  • Ticker: RAY
  • Exchange: DB
  • Founded: 1925
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €350.661m
  • Shares outstanding: 52.18m
  • Website: https://www.rallye.fr

Number of Employees


Location

  • Rallye SA
  • 83, rue du Faubourg Saint Honoré
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RALENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
RAYDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0K9NLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
RLYN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
RALPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992

Biography

Rallye SA, together with its subsidiaries, engages in the food, non-food e-commerce, and sporting goods retailing activities in France and internationally. The company operates in two segments, Food and General Retailing, and Holdings and Other Activities. It operates hypermarkets, supermarkets, and discount stores. The company conducts its retailing activities in France primarily under the Casino, Monoprix, Franprix-Leader Price, and Vindémia banners; food retail activities in Latin America primarily under the Éxito, Disco, Devoto, and Libertad banners, as well as GPA food banner; and e-commerce comprising Cdiscount and the Cnova N.V. holding company businesses. It is also involved in financial investment, real estate asset management, property development and trading, and energy efficiency activities; and operation of e-commerce sites and self-service restaurants. The company was founded in 1925 and is headquartered in Paris, France. Rallye SA is a subsidiary of Fonciere Euris SA. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 20:45
End of Day Share Price2020/03/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.