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 imperfect balance sheet.

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

-1.4%

RAL

0.2%

FR Consumer Retailing

2.9%

FR Market


1 Year Return

-34.4%

RAL

-3.3%

FR Consumer Retailing

10.2%

FR Market

Return vs Industry: RAL underperformed the French Consumer Retailing industry which returned -3.3% over the past year.

Return vs Market: RAL underperformed the French Market which returned 10.2% over the past year.


Share holder returns

RALIndustryMarket
7 Day-1.4%0.2%2.9%
30 Day-7.0%-10.5%-0.3%
90 Day41.3%-5.0%0.1%
1 Year-26.2%-34.4%1.2%-3.3%14.0%10.2%
3 Year-44.9%-57.7%-20.2%-29.3%44.3%30.4%
5 Year-67.6%-79.0%-27.5%-41.2%75.2%49.3%

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

Undervalued: RAL (€6.5) is trading below our estimate of fair value (€17.69)

Significantly Undervalued: RAL is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: RAL is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: RAL is unprofitable, so we can't compare its PE Ratio to the French market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: RAL is good value based on its PB Ratio (0.5x) compared to the FR Consumer Retailing industry average (0.8x).


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

Earnings vs Savings Rate: RAL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RAL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RAL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RAL's revenue (3.2% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: RAL's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

-13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RAL is unprofitable, and losses have increased over the past 5 years at a rate of -13.9% 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 (0.4%).


Return on Equity

High ROE: RAL has a negative Return on Equity (-1.39%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RAL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RAL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Rallye's financial position?


Financial Position Analysis

Short Term Liabilities: RAL's short term assets (€11.5B) do not cover its short term liabilities (€16.3B)

Long Term Liabilities: RAL's short term assets (11.5B) do not cover its long term liabilities (12.2B)


Debt to Equity History and Analysis

Debt Level: RAL's debt to equity ratio (142.9%) is considered high

Reducing Debt: RAL's debt to equity ratio has increased from 106.9% to 142.9% over the past 5 years.


Balance Sheet

Inventory Level: RAL has a high level of physical assets or inventory.

Debt Coverage by Assets: RAL's 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.

Stable Cash Runway: RAL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RAL has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -6.1% each year


Next Steps

Dividend

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

15.38%

Expected Dividend Yield


Dividend Yield vs Market

company15.4%marketbottom25%1.6%markettop25%4.6%industryaverage3.7%forecastin3Years15.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RAL's dividend (15.38%) is higher than the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: RAL's dividend (15.38%) is in the top 25% of dividend payers in the French market (4.65%)

Stable Dividend: RAL's dividend payments have been volatile in the past 10 years.

Growing Dividend: RAL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RAL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.2yrs

Average board tenure


CEO

Franck Hattab (48yo)

2.5yrs

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 ($USD925.67K) is about average for companies of similar size in the French market ($USD464.18K).

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


Board Age and Tenure

7.2yrs

Average Tenure

64yo

Average Age

Experienced Board: RAL's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Franck Hattab (48yo)

    General Manager

    • Tenure: 2.5yrs
    • Compensation: €837.73k

Board Members

  • Jean-Charles Naouri (70yo)

    Chairman of the Board

    • Tenure: 21.5yrs
    • Compensation: €10.00k
  • Jacques Dumas (67yo)

    Director

    • Tenure: 29.3yrs
    • Compensation: €1.06m
  • Christian Paillot (72yo)

    Non-Voting Director

    • Tenure: 2.4yrs
    • Compensation: €12.00k
  • Jean de Courcel (64yo)

    Non-Voting Director

    • Tenure: 2.4yrs
    • Compensation: €20.00k
  • Jean-Paul Onillon

    Chairman of the Board of Directors - Groupe GO Sport

    • Tenure: 6yrs
  • Didier Lévêque (58yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: €910.25k
  • Philippe Charrier (65yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: €50.00k
  • Odile Muracciole (59yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: €584.80k
  • Virginie Grin (52yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: €381.00k
  • Catherine Fulconis (58yo)

    Independent Director

    • Tenure: 5.4yrs
    • 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: €339.181m
  • 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 Analysis2019/10/13 20:40
End of Day Share Price2019/10/11 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.

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