ENXTPA:RAL

Stock Analysis Report

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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

Good value with questionable track record.

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


Market Performance


7 Day Return

-11.4%

RAL

1.7%

FR Consumer Retailing

-24.4%

FR Market


1 Year Return

108.0%

RAL

-15.3%

FR Consumer Retailing

-14.3%

FR Market

Return vs Industry: RAL exceeded the French Consumer Retailing industry which returned -15.3% over the past year.

Return vs Market: RAL exceeded the French Market which returned -14.4% over the past year.


Shareholder returns

RALIndustryMarket
7 Day-11.4%1.7%-24.4%
30 Day-17.6%-3.7%-26.1%
90 Day-17.8%-14.7%-21.6%
1 Year108.0%108.0%-13.2%-15.3%-12.4%-14.3%
3 Year-59.2%-66.5%-37.5%-44.1%-2.9%-11.1%
5 Year-67.7%-77.8%-49.9%-58.3%12.5%-2.1%

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

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: RAL (€6.5) is trading below our estimate of fair value (€38.16)

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


Price To Earnings Ratio

PE vs Industry: RAL is good value based on its PE Ratio (7.1x) compared to the Consumer Retailing industry average (19.9x).

PE vs Market: RAL is good value based on its PE Ratio (7.1x) compared to the French market (14x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RAL has negative assets, so we can't compare its PB Ratio to the FR Consumer Retailing industry average.


Next Steps

Future Growth

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

10.2%

Forecasted Consumer Retailing industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RAL's forecast earnings growth is above the savings rate (0.6%).

Earnings vs Market: Insufficient data to determine if RAL's earnings are forecast to grow faster than the French market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if RAL's revenue is forecast to grow faster than the French market.

High Growth Revenue: Insufficient data to determine if RAL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAL'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?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAL has a large one-off loss of €720.0M impacting its December 31 2019 financial results.

Growing Profit Margin: RAL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RAL has become profitable over the past 5 years, growing earnings by 8.3% per year.

Accelerating Growth: RAL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RAL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-4.1%).


Return on Equity

High ROE: RAL's Return on Equity (-7.2%) is considered low.


Next Steps

Financial Health

How is Rallye's financial position?


Financial Position Analysis

Short Term Liabilities: RAL's short term assets (€12.8B) do not cover its short term liabilities (€16.2B).

Long Term Liabilities: RAL's short term assets (€12.8B) do not cover its long term liabilities (€13.9B).


Debt to Equity History and Analysis

Debt Level: RAL's debt to equity ratio (206.7%) is considered high.

Reducing Debt: RAL's debt to equity ratio has increased from 128% to 206.7% over the past 5 years.

Debt Coverage: RAL's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: RAL's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAL's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

7.8yrs

Average board tenure


CEO

Franck Hattab (48yo)

3.08yrs

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 ($USD912.56K) is above average for companies of similar size in the French market ($USD668.80K).

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 Board22.08yrs€10.00k0.00071% 2.4k
Jacques Dumas
Director29.83yrs€1.06m0.059% 199.4k
Christian Paillot
Non-Voting Director3yrs€12.00k0.0020% 6.8k
Jean de Courcel
Non-Voting Director3yrs€20.00k0.00072% 2.4k
Jean-Paul Onillon
Chairman of the Board of Directors - Groupe GO Sport6.58yrsno datano data
Didier Lévêque
Director11.92yrs€910.25k0.19% 654.3k
Philippe Charrier
Independent Director10.92yrs€50.00k0.0031% 10.4k
Odile Muracciole
Director9yrs€584.80k0.16% 534.8k
Virginie Grin
Director4yrs€381.00k0.11% 367.5k
Catherine Fulconis
Independent Director6yrs€40.00k0.00092% 3.1k

7.8yrs

Average Tenure

64yo

Average Age

Experienced Board: RAL's board of directors are considered experienced (7.8 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: RAL
  • Exchange: ENXTPA
  • Founded: 1925
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €337.616m
  • 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 Analysis2020/05/25 20:40
End of Day Share Price2020/05/25 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.