ENXTPA:RAL

Stock Analysis Report

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

Fundamentals

Fair value with moderate growth potential.

Risks

  • Rallye has significant price volatility in the past 3 months.
  • Rallye is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

22.6%

ENXTPA:RAL

2.2%

FR Consumer Retailing

0.7%

FR Market


1 Year Return

-50.4%

ENXTPA:RAL

-0.1%

FR Consumer Retailing

-2.4%

FR Market

RAL underperformed the Consumer Retailing industry which returned -0.1% over the past year.

RAL underperformed the Market in France which returned -2.4% over the past year.


Share holder returns

RALIndustryMarket
7 Day22.6%2.2%0.7%
30 Day15.4%-7.0%-4.9%
90 Day68.3%-2.0%0.2%
1 Year-44.3%-50.4%4.4%-0.1%1.0%-2.4%
3 Year-55.1%-65.6%-20.6%-29.7%39.1%25.6%
5 Year-78.9%-86.4%-38.7%-50.3%53.7%30.9%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Rallye is loss making, we can't compare its value to the Europe Consumer Retailing industry average.

Rallye is loss making, we can't compare the value of its earnings to the France market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rallye, we can't assess if its growth is good value.


Price Based on Value of Assets

Rallye is good value based on assets compared to the FR Consumer Retailing industry average.


Next Steps

Future Growth

How is Rallye expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

173.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rallye's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Rallye's earnings are expected to grow significantly at over 20% yearly.

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Rallye will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Rallye performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rallye does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Rallye's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Rallye's 1-year growth to the Europe Consumer Retailing industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Rallye has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Rallye used its assets less efficiently than the Europe Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Rallye improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Rallye's financial position?


Financial Position Analysis

Rallye's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Rallye's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rallye's level of debt (142.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (106.9% vs 142.9% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


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.

Rallye has sufficient cash runway for more than 3 years based on current free cash flow.

Rallye has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 6.1% each year.


Next Steps

Dividend

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

20.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rallye's pays a higher dividend yield than the bottom 25% of dividend payers in France (1.56%).

Rallye's dividend is above the markets top 25% of dividend payers in France (4.51%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

7.0yrs

Average board tenure


CEO

Franck Hattab (48yo)

2.3yrs

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

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

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


Board Age and Tenure

7.0yrs

Average Tenure

64yo

Average Age

The tenure for the Rallye board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Franck Hattab (48yo)

    General Manager

    • Tenure: 2.3yrs
    • Compensation: €837.73k

Board Members

  • Jean-Charles Naouri (70yo)

    Chairman of the Board

    • Tenure: 21.3yrs
    • Compensation: €10.00k
  • Jacques Dumas (67yo)

    Director

    • Tenure: 29.1yrs
    • Compensation: €1.06m
  • Christian Paillot (72yo)

    Non-Voting Director

    • Tenure: 2.3yrs
    • Compensation: €12.00k
  • Jean de Courcel (64yo)

    Non-Voting Director

    • Tenure: 2.3yrs
    • Compensation: €20.00k
  • Jean-Paul Onillon

    Chairman of the Board of Directors - Groupe GO Sport

    • Tenure: 5.8yrs
  • Didier Lévêque (58yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: €910.25k
  • Philippe Charrier (65yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: €50.00k
  • Odile Muracciole (59yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: €584.80k
  • Virginie Grin (52yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: €381.00k
  • Catherine Fulconis (58yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €40.00k

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: €258.561m
  • Shares outstanding: 52.18m
  • Website: https://www.rallye.fr

Number of Employees


Location

  • Rallye SA
  • 32, rue de Ponthieu
  • 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 Ge ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:34
End of Day Share Price2019/08/23 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.