Rallye (ENXTPA:RAL) - Share price, News & Analysis

RAL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

RAL Stock Overview

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

Rewards

Trading at 93.1% below our estimate of its fair value

Risk Analysis

Volatile share price over the past 3 months

Rallye Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rallye
Historical stock prices
Current Share Price	€3.00
52 Week High	€7.54
52 Week Low	€2.82
Beta	2.53
1 Month Change	-15.37%
3 Month Change	-18.03%
1 Year Change	-57.51%
3 Year Change	-53.85%
5 Year Change	-83.74%
Change since IPO	-93.84%

Recent News & Updates

May 14

Rallye's (EPA:RAL) Returns On Capital Are Heading Higher

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Apr 06

Is Rallye (EPA:RAL) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	RAL	FR Consumer Retailing	FR Market
7D	-6.3%	-8.9%	-1.2%
1Y	-57.5%	-10.5%	-12.8%

Return vs Industry: RAL underperformed the French Consumer Retailing industry which returned -4.9% over the past year.

Return vs Market: RAL underperformed the French Market which returned -13.1% over the past year.

Price Volatility

Is RAL's price volatile compared to industry and market?
RAL volatility
RAL Average Weekly Movement	8.8%
Consumer Retailing Industry Average Movement	6.2%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: RAL is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RAL's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

Founded	Employees	CEO	Website
1925	208,733	Franck Hattab	https://www.rallye.fr

Rallye SA, together with its subsidiaries, engages in the food, non-food e-commerce, and sporting goods retailing business in France and internationally. The company operates in two segments, Food and General Retailing, and Holdings and Other Activities. It operates hypermarkets, supermarkets, and convenience stores.

Rallye Fundamentals Summary

How do Rallye's earnings and revenue compare to its market cap?
RAL fundamental statistics
Market Cap	€157.80m
Earnings (TTM)	-€19.00m
Revenue (TTM)	€31.06b

0.0x

P/S Ratio

-8.3x

P/E Ratio

Is RAL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAL income statement (TTM)
Revenue	€31.06b
Cost of Revenue	€23.44b
Gross Profit	€7.62b
Other Expenses	€7.64b
Earnings	-€19.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.36
Gross Margin	24.54%
Net Profit Margin	-0.061%
Debt/Equity Ratio	309.7%

How did RAL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is RAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RAL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RAL. This is calculated by dividing RAL's market cap by their current preferred multiple.
What is RAL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€157.80m

RAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	10.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does RAL's PS Ratio compare to its peers?

RAL PS Ratio vs Peers

The above table shows the PS ratio for RAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.2x

Forward PS

Price-To-Sales vs Peers: RAL is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.2x).

Price to Earnings Ratio vs Industry

How does RAL's PE Ratio compare vs other companies in the Consumer Retailing Industry?

Price-To-Sales vs Industry: RAL is good value based on its Price-To-Sales Ratio (0x) compared to the French Consumer Retailing industry average (0x)

Price to Sales Ratio vs Fair Ratio

What is RAL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RAL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.005x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RAL's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of RAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RAL (€3) is trading below our estimate of fair value (€43.4)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Rallye forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.1%

Forecasted Consumer Retailing industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rallye has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Rallye is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Rallye competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Rallye performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

56.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RAL is currently unprofitable.

Growing Profit Margin: RAL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: RAL is unprofitable, but has reduced losses over the past 5 years at a rate of 56.1% per year.

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

Earnings vs Industry: RAL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (24.4%).

Return on Equity

High ROE: RAL has a negative Return on Equity (-3.21%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Rallye's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RAL's short term assets (€9.5B) do not cover its short term liabilities (€11.9B).

Long Term Liabilities: RAL's short term assets (€9.5B) do not cover its long term liabilities (€15.8B).

Debt to Equity History and Analysis

Debt Level: RAL's net debt to equity ratio (247%) is considered high.

Reducing Debt: RAL's debt to equity ratio has increased from 108.5% to 309.7% over the past 5 years.

Balance Sheet

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: Whilst unprofitable RAL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RAL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.1% per year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RAL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RAL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: RAL is not paying a notable dividend for the French market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RAL has not reported any payouts.

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Management

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

8.7yrs

Average board tenure

CEO

Franck Hattab (50 yo)

5.17yrs

Tenure

€978,353

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 ($USD1.04M) is above average for companies of similar size in the French market ($USD395.65K).

Compensation vs Earnings: Franck's compensation has increased whilst the company is unprofitable.

Board Members

Experienced Board: RAL's board of directors are considered experienced (8.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/22 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31