ENXTPA:RXL

Stock Analysis Report

Executive Summary

Rexel S.A. distributes low and ultra-low voltage electrical products to professional customers and markets in the fields of construction, industry, and services.

Rewards

Trading at 24.3% below its fair value

Earnings are forecast to grow 9.89% per year

Earnings grew by 111.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RXL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

RXL

4.0%

FR Trade Distributors

1.2%

FR Market


1 Year Return

18.1%

RXL

20.2%

FR Trade Distributors

20.8%

FR Market

Return vs Industry: RXL underperformed the French Trade Distributors industry which returned 20.2% over the past year.

Return vs Market: RXL underperformed the French Market which returned 20.8% over the past year.


Shareholder returns

RXLIndustryMarket
7 Day2.8%4.0%1.2%
30 Day-1.7%-1.9%-0.7%
90 Day9.4%4.1%3.6%
1 Year23.0%18.1%24.9%20.2%25.1%20.8%
3 Year-17.3%-25.3%-11.7%-20.1%41.1%27.4%
5 Year-3.2%-19.5%3.3%-13.8%77.1%50.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RXL (€11.68) is trading below our estimate of fair value (€15.43)

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


Price To Earnings Ratio

PE vs Industry: RXL is poor value based on its PE Ratio (16.2x) compared to the Trade Distributors industry average (16.2x).

PE vs Market: RXL is good value based on its PE Ratio (16.2x) compared to the French market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: RXL is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: RXL is good value based on its PB Ratio (0.9x) compared to the FR Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is Rexel forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RXL's forecast earnings growth (9.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: RXL's earnings (9.9% per year) are forecast to grow slower than the French market (11.4% per year).

High Growth Earnings: RXL's earnings are forecast to grow, but not significantly.

Revenue vs Market: RXL's revenue (2% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: RXL's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RXL's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Rexel performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RXL has a large one-off loss of €161.0M impacting its June 30 2019 financial results.

Growing Profit Margin: RXL's current net profit margins (1.6%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: RXL's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: RXL's earnings growth over the past year (111.3%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: RXL earnings growth over the past year (111.3%) exceeded the Trade Distributors industry 5.7%.


Return on Equity

High ROE: RXL's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rexel's financial position?


Financial Position Analysis

Short Term Liabilities: RXL's short term assets (€5.0B) exceed its short term liabilities (€3.9B).

Long Term Liabilities: RXL's short term assets (€5.0B) exceed its long term liabilities (€3.1B).


Debt to Equity History and Analysis

Debt Level: RXL's debt to equity ratio (63.4%) is considered high.

Reducing Debt: RXL's debt to equity ratio has reduced from 76.4% to 63.4% over the past 5 years.

Debt Coverage: RXL's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: RXL's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: RXL's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%4.6%industryaverage2.4%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: RXL's dividend (3.77%) is higher than the bottom 25% of dividend payers in the French market (1.49%).

High Dividend: RXL's dividend (3.77%) is low compared to the top 25% of dividend payers in the French market (4.59%).


Stability and Growth of Payments

Stable Dividend: RXL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RXL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61%), RXL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RXL's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

What is the CEO of Rexel's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Patrick Berard (66yo)

3.4yrs

Tenure

€2,486,022

Compensation

Mr. Patrick Berard has been Director of LKQ Corporation since October 2, 2019. He has been the Chief Executive Officer of Rexel SA since July 1, 2016 and served as its Europe General Manager since November ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD2.76M) is above average for companies of similar size in the French market ($USD1.65M).

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


Management Age and Tenure

3.1yrs

Average Tenure

60.5yo

Average Age

Experienced Management: RXL's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

62yo

Average Age

Experienced Board: RXL's board of directors are considered experienced (3 years average tenure).


Insider Trading

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.


Management Team

  • John Hanna (76yo)

    Senior Vice President - Canada

    • Tenure: 0yrs
  • Patrick Berard (66yo)

    CEO, CEO of Europe & Director

    • Tenure: 3.4yrs
    • Compensation: €2.49m
  • Werner Hardt

    Chief Executive Officer of Central Europe and Scandinavia

    • Tenure: 0yrs
  • Dominique Cateau

    Senior Vice President of Southern and Western Europe

    • Tenure: 0yrs
  • Ludovic Debailleux

    Investors Relations Director

    • Tenure: 0yrs
  • Roger Little

    CEO of Rexel Canada

    • Tenure: 5.8yrs
  • Pierre Benoît

    CEO of UK/Ireland-Benelux

    • Tenure: 0.7yrs
  • Nathalie Wright (55yo)

    Group Digital & IT Transformation Director and CEO Nordics

    • Tenure: 0yrs
  • Frank Waldmann

    Group Human Resources Director

    • Tenure: 3.1yrs
  • Laurent Delabarre (53yo)

    Group Chief Financial Officer

    • Tenure: 2.6yrs

Board Members

  • Agnès Touraine (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: €90.00k
  • Ian Meakins (62yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: €500.00k
  • François Henrot (70yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 5.6yrs
    • Compensation: €140.00k
  • Patrick Berard (66yo)

    CEO, CEO of Europe & Director

    • Tenure: 3.4yrs
    • Compensation: €2.49m
  • François Auque (62yo)

    Director

    • Tenure: 0.6yrs
    • Compensation: €12.60k
  • Maria Del Richter (65yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: €97.50k
  • Herna Verhagen (53yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: €95.00k
  • Marcus Alexanderson (43yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: €80.00k
  • Elen Phillips (59yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €95.00k
  • Julien Bonnel (33yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: €70.00k

Company Information

Rexel S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rexel S.A.
  • Ticker: RXL
  • Exchange: ENXTPA
  • Founded: 1967
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: €3.529b
  • Shares outstanding: 302.15m
  • Website: https://www.rexel.com

Number of Employees


Location

  • Rexel S.A.
  • 13 Boulevard du Fort de Vaux
  • CS 60002
  • Paris
  • Ile-de-France
  • 75017
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RXLENXTPA (Euronext Paris)YesOrdinary SharesFREURJun 2000
0KBZLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2000
RXLS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2000
E7VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2000
RXLPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2000
RXEE.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2012

Biography

Rexel S.A. distributes low and ultra-low voltage electrical products to professional customers and markets in the fields of construction, industry, and services. It offers electrical installation equipment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:42
End of Day Share Price2019/12/11 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.