ENXTPA:RUI

Stock Analysis Report

Executive Summary

Rubis, through its subsidiaries, engages in the operation of bulk liquid storage facilities; and distribution of petroleum products in Europe, Africa, and the Caribbean.

Rewards

Trading at 28% below its fair value

Earnings are forecast to grow 7.05% per year

Earnings have grown 18% per year over the past 5 years

Pays a high and reliable dividend of 2.89%

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Buckeye Partners

NYSE:BPL

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RUI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

RUI

3.1%

FR Gas Utilities

1.5%

FR Market


1 Year Return

8.0%

RUI

5.3%

FR Gas Utilities

24.1%

FR Market

Return vs Industry: RUI exceeded the French Gas Utilities industry which returned 3.6% over the past year.

Return vs Market: RUI underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

RUIIndustryMarket
7 Day1.4%3.1%1.5%
30 Day1.1%3.9%3.3%
90 Day10.0%3.1%8.9%
1 Year11.6%8.0%10.4%5.3%28.5%24.1%
3 Year60.7%47.8%48.8%29.4%45.3%31.4%
5 Year162.1%121.4%52.9%15.0%65.3%41.2%

Price Volatility Vs. Market

How volatile is Rubis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rubis undervalued compared to its fair value and its price relative to the market?

12.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RUI (€55.05) is trading below our estimate of fair value (€76.44)

Significantly Below Fair Value: RUI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RUI is good value based on its PE Ratio (19x) compared to the Gas Utilities industry average (19.9x).

PE vs Market: RUI is poor value based on its PE Ratio (19x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: RUI is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: RUI is overvalued based on its PB Ratio (2.4x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is Rubis forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUI's forecast earnings growth (7% per year) is above the savings rate (-0.1%).

Earnings vs Market: RUI's earnings (7% per year) are forecast to grow slower than the French market (11.7% per year).

High Growth Earnings: RUI's earnings are forecast to grow, but not significantly.

Revenue vs Market: RUI's revenue (8.2% per year) is forecast to grow faster than the French market (4.7% per year).

High Growth Revenue: RUI's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RUI's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Rubis performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUI has high quality earnings.

Growing Profit Margin: RUI's current net profit margins (5.5%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: RUI's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: RUI's earnings growth over the past year (10.4%) is below its 5-year average (18% per year).

Earnings vs Industry: RUI earnings growth over the past year (10.4%) underperformed the Gas Utilities industry 10.6%.


Return on Equity

High ROE: RUI's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rubis's financial position?


Financial Position Analysis

Short Term Liabilities: RUI's short term assets (€2.1B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: RUI's short term assets (€2.1B) exceed its long term liabilities (€1.7B).


Debt to Equity History and Analysis

Debt Level: RUI's debt to equity ratio (72.7%) is considered high.

Reducing Debt: RUI's debt to equity ratio has increased from 64.9% to 72.7% over the past 5 years.

Debt Coverage: RUI's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: RUI's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: RUI's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%4.4%industryaverage5.1%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: RUI's dividend (2.89%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: RUI's dividend (2.89%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

Stable Dividend: RUI's dividends per share have been stable in the past 10 years.

Growing Dividend: RUI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55%), RUI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RUI's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

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

8.6yrs

Average board tenure


CEO

Christian Cochet 0

0yrs

Tenure

0

Mr. Christian Cochet serves as Chief Executive Officer of Rubis Energie and Rubis Support & Services at Rubis. Mr. Cochet is an Non Executive Director at KenolKobil Plc since April 2019. Mr. Cochet has exp ...


Board Age and Tenure

8.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: RUI's board of directors are considered experienced (8.6 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Christian Cochet

    Chief Executive Officer of Rubis Energie and Rubis Support & Services

    • Jacques Riou

      Managing Partner & Manager

      • Tenure: 27.2yrs
      • Compensation: €695.90k
    • Gilles Gobin (69yo)

      Managing Partner & Statutory Manager

      • Tenure: 27.6yrs
      • Compensation: €1.64m
    • Evelyne Peloye

      Director of Communication

      • Bruno Krief

        Chief Financial Officer

        • Maura Tartaglia

          Head of the Legal Department & Corporate Secretary

          • Anne Zentar

            Corporate Consolidation & Accounting Director

            • Luc Jorissen

              Chief Executive Officer of Rubis Terminal BV

              • Bruno Hayem

                Chief Executive Officer of Rubis Terminal

                • Arnaud Havard

                  Chief Executive Officer of Rubis Energia Portugal


                  Board Members

                  • Hervé Claquin (70yo)

                    Independent Member of Supervisory Board

                    • Tenure: 12.6yrs
                    • Compensation: €12.32k
                  • Christian Moretti (73yo)

                    Non Independent Member of Supervisory Board

                    • Tenure: 21.6yrs
                    • Compensation: €12.32k
                  • Chantal Mazzacurati (69yo)

                    Independent Member of Supervisory Board

                    • Tenure: 9.6yrs
                    • Compensation: €21.42k
                  • Erik Pointillart (67yo)

                    Non-Independent Member of Supervisory Board

                    • Tenure: 16.8yrs
                    • Compensation: €10.12k
                  • Olivier Heckenroth (68yo)

                    Chairman of Supervisory Board

                    • Compensation: €30.26k
                  • Alexandre François Picciotto (51yo)

                    Independent Member of Supervisory Board

                    • Tenure: 8.6yrs
                    • Compensation: €7.82k
                  • Carole Fiquemont (54yo)

                    Independent Member of Supervisory Board

                    • Tenure: 0.6yrs
                  • Marie-Helene Dessailly (71yo)

                    Independent Member of Supervisory Board

                    • Tenure: 3.6yrs
                    • Compensation: €12.32k
                  • Laure Grimonpret-Tahon (38yo)

                    Independent Member of Supervisory Board

                    • Tenure: 4.6yrs
                    • Compensation: €7.82k
                  • Aurélie Goulart-Lechevalier (38yo)

                    Independent Member of Supervisory Board

                    • Tenure: 0.6yrs

                  Company Information

                  Rubis's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Rubis
                  • Ticker: RUI
                  • Exchange: ENXTPA
                  • Founded: 1990
                  • Industry: Gas Utilities
                  • Sector: Utilities
                  • Market Cap: €5.613b
                  • Shares outstanding: 100.06m
                  • Website: https://www.rubis.fr

                  Number of Employees


                  Location

                  • Rubis
                  • 105, avenue Raymond-Poincaré
                  • Paris
                  • Ile-de-France
                  • 75116
                  • France

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  RUBS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
                  RUIENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
                  BYNNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
                  0RTSLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
                  RUIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
                  RBSF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 2014

                  Biography

                  Rubis, through its subsidiaries, engages in the operation of bulk liquid storage facilities; and distribution of petroleum products in Europe, Africa, and the Caribbean. The company operates terminals that provide bulk liquid storage facilities for petroleum products, chemical products, fertilizers, molasses, and edible oils; and distributes liquefied petroleum gas and petroleum products, such as butane, propane, gasoline, diesel, kerosene, fuel oil, etc. It also provides infrastructure, transportation, supply, and services for supporting the development of downstream distribution and marketing business. The company serves hypermarkets; oil companies, and chemical and petrochemical groups; and traders and middlemen. Rubis was founded in 1990 and is headquartered in Paris, France. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/17 20:34
                  End of Day Share Price2020/01/17 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.