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 48.3% below its fair value

Earnings are forecast to grow 16.62% per year

Earnings grew by 52.5% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-23.0%

RXL

-16.0%

FR Trade Distributors

-4.8%

FR Market


1 Year Return

-45.5%

RXL

-41.9%

FR Trade Distributors

-23.2%

FR Market

Return vs Industry: RXL underperformed the French Trade Distributors industry which returned -37.8% over the past year.

Return vs Market: RXL underperformed the French Market which returned -21.9% over the past year.


Shareholder returns

RXLIndustryMarket
7 Day-23.0%-16.0%-4.8%
30 Day-39.2%-33.0%-18.7%
90 Day-50.1%-45.1%-28.9%
1 Year-43.3%-45.5%-39.6%-41.9%-20.5%-23.2%
3 Year-60.1%-64.0%-54.8%-59.1%-4.8%-13.6%
5 Year-60.0%-66.7%-53.0%-60.7%1.3%-13.1%

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?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RXL (€5.95) is trading below our estimate of fair value (€11.5)

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


Price To Earnings Ratio

PE vs Industry: RXL is good value based on its PE Ratio (8.8x) compared to the Trade Distributors industry average (11.9x).

PE vs Market: RXL is good value based on its PE Ratio (8.8x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: RXL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RXL is good value based on its PB Ratio (0.4x) compared to the FR Trade Distributors industry average (0.7x).


Next Steps

Future Growth

How is Rexel forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RXL's forecast earnings growth (16.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: RXL's earnings (16.6% per year) are forecast to grow faster than the French market (12% per year).

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

Revenue vs Market: RXL's revenue (0.8% per year) is forecast to grow slower than the French market (3.5% per year).

High Growth Revenue: RXL's revenue (0.8% 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 (7.9%).


Next Steps

Past Performance

How has Rexel performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RXL has a large one-off loss of €207.0M impacting its December 31 2019 financial results.

Growing Profit Margin: RXL's current net profit margins (1.5%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: RXL's earnings have declined by -1.4% per year over the past 5 years.

Accelerating Growth: RXL's earnings growth over the past year (52.5%) exceeds its 5-year average (-1.4% per year).

Earnings vs Industry: RXL earnings growth over the past year (52.5%) exceeded the Trade Distributors industry 9.9%.


Return on Equity

High ROE: RXL's Return on Equity (4.8%) is considered low.


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 (€3.7B).

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 (58.5%) is considered high.

Reducing Debt: RXL's debt to equity ratio has reduced from 77.2% to 58.5% over the past 5 years.

Debt Coverage: RXL's debt is well covered by operating cash flow (22.3%).

Interest Coverage: RXL's interest payments on its debt are well covered by EBIT (5.8x 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 2x debt).


Next Steps

Dividend

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

8.07%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RXL's dividend (8.07%) is higher than the bottom 25% of dividend payers in the French market (2.04%).

High Dividend: RXL's dividend (8.07%) is in the top 25% of dividend payers in the French market (6.46%)


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 (70.9%), 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 (44.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Patrick Berard (66yo)

3.75s

Tenure

€2,171,927

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 its Chief Executive Officer of Europe since 2015. H ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD2.34M) is above average for companies of similar size in the French market ($USD1.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Berard
CEO, CEO of Europe & Director3.75yrs€2.17m0.14% 2.5m
Laurent Delabarre
Group Chief Financial Officer2.92yrsno datano data
Ludovic Debailleux
Investors Relations Directorno datano datano data
Frank Waldmann
Group Human Resources Director3.42yrsno datano data
Roger Little
Chief Executive Officer of Canada6.08yrsno datano data
Pierre Benoît
Chief Executive Officer of United Kingdom & Ireland - Benelux1yrno datano data
Jeffrey Baker
CEO & Senior VP of Rexel USAno datano datano data
Sébastien Thierry
General Secretary & Secretary of the Board3.42yrsno datano data
Nathalie Wright
Former Group Digital and IT Transformation Directorno datano datano data
Michael Destefano
Industrial & Automation Director5.42yrsno datano data

3.4yrs

Average Tenure

60yo

Average Age

Experienced Management: RXL's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Berard
CEO, CEO of Europe & Director3.75yrs€2.17m0.14% 2.5m
Agnès Touraine
Independent Director3.17yrs€97.50k0.00037% 6.6k
Ian Meakins
Independent Non-Executive Chairman of the Board3.5yrs€500.00k0.055% 993.9k
François Henrot
Deputy Chairman & Senior Independent Director5.92yrs€140.00k0.0024% 42.4k
François Auque
Independent Director0.92yr€103.20k0.00033% 5.9k
Maria Del Richter
Independent Director5.92yrs€95.00k0.0015% 26.8k
Hendrika W. P. M. Verhagen
Independent Director5.92yrs€95.00k0.00033% 5.9k
Marcus Alexanderson
Non-Independent Director2.92yrs€82.50k0.0016% 29.7k
Elen Phillips
Independent Director4.08yrs€95.00k0.0016% 29.7k
Julien Bonnel
Employee Representative Director2.42yrs€82.50k0.00050% 9.0k

3.3yrs

Average Tenure

62yo

Average Age

Experienced Board: RXL's board of directors are considered experienced (3.3 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

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: €1.797b
  • Shares outstanding: 302.22m
  • 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, conduits and cables, lighting, security and communication, climate control, tools, and white and brown goods. As of February 13, 2020, the company operated a network of approximately 2,000 branches in 26 countries. It principally operates in Europe, the United States, Canada, Australia, New Zealand, India, the Middle East, and China. Rexel S.A. was founded in 1967 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 21:29
End of Day Share Price2020/04/03 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.