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.

Snowflake

Fundamentals

Undervalued with adequate balance sheet and pays a dividend.

Risks

  • Rexel has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

3.8%

ENXTPA:RXL

4.2%

FR Trade Distributors

3.0%

FR Market


1 Year Return

-32.2%

ENXTPA:RXL

-28.6%

FR Trade Distributors

-1.3%

FR Market

RXL underperformed the Trade Distributors industry which returned -29.7% over the past year.

RXL underperformed the Market in France which returned -0.3% over the past year.


Share holder returns

RXLIndustryMarket
7 Day3.8%4.2%3.0%
30 Day-17.5%-12.8%-4.1%
90 Day-10.6%-6.5%1.2%
1 Year-29.4%-32.2%-25.8%-28.6%2.1%-1.3%
3 Year-30.4%-37.2%-19.6%-27.3%41.3%27.5%
5 Year-29.1%-41.1%-18.0%-31.5%55.6%32.6%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rexel's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rexel's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rexel is good value based on earnings compared to the Europe Trade Distributors industry average.

Rexel is good value based on earnings compared to the France market.


Price Based on Expected Growth

Rexel is poor value based on expected growth next year.


Price Based on Value of Assets

Rexel is good value based on assets compared to the FR Trade Distributors industry average.


Next Steps

Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rexel's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Rexel's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).

Rexel's revenue growth is positive but not above the France market average.

Rexel's earnings growth is expected to exceed the France market average.

Rexel's earnings growth is expected to exceed the low risk savings rate of 0.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Rexel is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Rexel performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rexel's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Rexel's 1-year earnings growth exceeds its 5-year average (111.3% vs -9.2%)

Rexel's earnings growth has exceeded the Europe Trade Distributors industry average in the past year (111.3% vs 12.1%).


Return on Equity

Rexel has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rexel used its assets less efficiently than the Europe Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Rexel has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rexel's financial position?


Financial Position Analysis

Rexel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rexel's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rexel's level of debt (63.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (76.4% vs 63.4% today).

Debt is not well covered by operating cash flow (9.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.76%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rexel's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.55%).

Rexel's dividend is above the markets top 25% of dividend payers in France (4.53%).

Rexel has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Rexel only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Patrick Berard (66yo)

3.1yrs

Tenure

€2,486,022

Compensation

Mr. Patrick Berard has been the Chief Executive Officer of Rexel SA since July 1, 2016 and served as its Europe General Manager since November 8, 2016 until 2019. Mr. Berard serves as Europe Chief Executiv ...


CEO Compensation Analysis

Patrick's remuneration is higher than average for companies of similar size in France.

Patrick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

60.5yo

Average Age

The tenure for the Rexel management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

62yo

Average Age

The average tenure for the Rexel board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Hanna (76yo)

    Senior Vice President - Canada

    • Tenure: 0.0yrs
  • Patrick Berard (66yo)

    CEO, CEO of Europe & Director

    • Tenure: 3.1yrs
    • Compensation: €2.49m
  • Dominique Cateau

    Senior Vice President of Southern and Western Europe

    • Tenure: 0.0yrs
  • Ludovic Debailleux

    Investors Relations Director

    • Tenure: 0.0yrs
  • Roger Little

    CEO of Rexel Canada

    • Tenure: 5.4yrs
  • Pierre Benoît

    CEO of UK/Ireland-Benelux

    • Tenure: 0.3yrs
  • Nathalie Wright (55yo)

    Group Digital & IT Transformation Director and CEO Nordics

    • Tenure: 0.0yrs
  • Éric Gauthier

    Chief Executive Officer of Asia-Pacific

    • Tenure: 2.9yrs
  • Frank Waldmann

    Group Human Resources Director

    • Tenure: 2.8yrs
  • Laurent Delabarre (53yo)

    Group Chief Financial Officer

    • Tenure: 2.3yrs

Board Members

  • Agnès Touraine (64yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: €90.00k
  • Ian Meakins (62yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: €500.00k
  • François Henrot (70yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 5.3yrs
    • Compensation: €140.00k
  • Patrick Berard (66yo)

    CEO, CEO of Europe & Director

    • Tenure: 3.1yrs
    • Compensation: €2.49m
  • François Auque (62yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: €12.60k
  • Maria Del Richter (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €97.50k
  • Herna Verhagen (53yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €95.00k
  • Marcus Alexanderson (43yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: €80.00k
  • Elen Phillips (59yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €95.00k
  • Julien Bonnel (33yo)

    Director

    • Tenure: 1.8yrs
    • 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: €2.702b
  • Shares outstanding: 301.88m
  • 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 Analysis2019/08/22 20:45
End of Day Share Price2019/08/22 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.