AIM:RAI

Stock Analysis Report

Executive Summary

RA International Group PLC provides site services in demanding and remote areas in Africa and the Middle East.

Rewards

Trading at 44.9% below its fair value

Earnings are forecast to grow 33.58% per year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has RA International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

RAI

-0.8%

GB Construction

-2.5%

GB Market


1 Year Return

-48.7%

RAI

-11.1%

GB Construction

5.3%

GB Market

Return vs Industry: RAI underperformed the UK Construction industry which returned -11.1% over the past year.

Return vs Market: RAI underperformed the UK Market which returned 5.3% over the past year.


Shareholder returns

RAIIndustryMarket
7 Day-1.7%-0.8%-2.5%
30 Day-10.6%2.3%-1.3%
90 Day-25.2%6.4%0.9%
1 Year-47.6%-48.7%-7.7%-11.1%10.9%5.3%
3 Yearn/a-31.2%-40.5%19.4%4.1%
5 Yearn/a-9.7%-32.3%36.4%5.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is RA International Group undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAI (£0.34) is trading below our estimate of fair value (£0.62)

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


Price To Earnings Ratio

PE vs Industry: RAI is poor value based on its PE Ratio (10.1x) compared to the Construction industry average (9.4x).

PE vs Market: RAI is good value based on its PE Ratio (10.1x) compared to the UK market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: RAI is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: RAI is overvalued based on its PB Ratio (1.3x) compared to the GB Construction industry average (1.3x).


Next Steps

Future Growth

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

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAI's forecast earnings growth (33.6% per year) is above the savings rate (0.5%).

Earnings vs Market: RAI's earnings (33.6% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: RAI's revenue (15.3% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: RAI's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RA International Group performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAI has a high level of non-cash earnings.

Growing Profit Margin: RAI's current net profit margins (15%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: RAI's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: RAI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAI had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the Construction industry average (-13.7%).


Return on Equity

High ROE: RAI's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RA International Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAI's short term assets ($45.1M) exceed its short term liabilities ($6.1M).

Long Term Liabilities: RAI's short term assets ($45.1M) exceed its long term liabilities ($2.8M).


Debt to Equity History and Analysis

Debt Level: RAI is debt free.

Reducing Debt: RAI had no debt 5 years ago.

Debt Coverage: RAI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RAI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: RAI's debt is covered by short term assets (assets are 1.0161246659255E+17x debt).


Next Steps

Dividend

What is RA International Group's current dividend yield, its reliability and sustainability?

2.68%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.0%markettop25%5.3%industryaverage4.2%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: RAI's dividend (2.68%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: RAI's dividend (2.68%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RAI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RAI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), RAI's dividend payments are well covered by earnings.


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 RA International Group's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average board tenure


CEO

Soraya Narfeldt 0

0yrs

Tenure

0

Ms. Soraya Muriel Narfeldt serves as the Chief Executive Officer at RA International Group PLC and has been its Executive Director since March 13, 2018. 


Board Age and Tenure

1.6yrs

Average Tenure

Experienced Board: RAI's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$49,75020 Dec 18
Alec Carstairs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares108,743
Max PriceUS$0.46
BuyUS$19,98720 Dec 18
Sangita Vadilal Shah
EntityIndividual
Role
Chairman of the Board
Non-Executive Chair
Shares42,983
Max PriceUS$0.47
BuyUS$46,00020 Dec 18
Philip Haydn-Slater
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceUS$0.46

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.9%.


Management Team

  • Soraya Narfeldt

    CEO & Executive Director

    • Tenure: 0yrs
  • Lars Narfeldt

    COO & Executive Director

    • Tenure: 1.8yrs
  • Andrew Bolter

    CFO & Executive Director

    • Tenure: 1.6yrs

Board Members

  • Ian Henderson

    Non-Executive Director

    • Tenure: 1.6yrs
  • Alec Carstairs

    Non-Executive Director

    • Tenure: 1.6yrs
  • Sangita Vadilal Shah (52yo)

    Non-Executive Chair

    • Tenure: 0yrs
  • Philip Haydn-Slater (58yo)

    Non-Executive Director

    • Tenure: 1.6yrs
  • Soraya Narfeldt

    CEO & Executive Director

    • Tenure: 0yrs
  • Lars Narfeldt

    COO & Executive Director

    • Tenure: 1.8yrs
  • Andrew Bolter

    CFO & Executive Director

    • Tenure: 1.6yrs

Company Information

RA International Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RA International Group PLC
  • Ticker: RAI
  • Exchange: AIM
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£59.710m
  • Shares outstanding: 173.58m
  • Website: https://www.rainternationalservices.com

Number of Employees


Location

  • RA International Group PLC
  • Bay Square Building 12
  • Office 704
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAIAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2018

Biography

RA International Group PLC provides site services in demanding and remote areas in Africa and the Middle East. The company constructs horizontal and vertical projects, roads, runways, helipads, and aprons; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/04 22:26
End of Day Share Price2019/12/04 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.