AIM:RAI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

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

0%

RAI

0.6%

GB Construction

0.5%

GB Market


1 Year Return

-15.9%

RAI

-12.4%

GB Construction

-14.6%

GB Market

Return vs Industry: RAI underperformed the UK Construction industry which returned -13.5% over the past year.

Return vs Market: RAI underperformed the UK Market which returned -13.7% over the past year.


Shareholder returns

RAIIndustryMarket
7 Day0%0.6%0.5%
30 Day16.9%-2.7%-4.2%
90 Day30.4%10.0%10.5%
1 Year-13.3%-15.9%1.9%-12.4%-10.7%-14.6%
3 Yearn/a-35.8%-50.4%-2.6%-14.6%
5 Yearn/a-28.5%-51.6%14.5%-11.1%

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?

7.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAI (£0.45) is trading above our estimate of fair value (£0.19)

Significantly Below Fair Value: RAI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAI is good value based on its PE Ratio (7.6x) compared to the Construction industry average (7.9x).

PE vs Market: RAI is good value based on its PE Ratio (7.6x) compared to the UK market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RAI is overvalued based on its PB Ratio (1.4x) 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?

18.5%

Forecasted Capital Goods industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RAI's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if RAI's earnings are forecast to grow faster than the UK 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 RAI's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if RAI'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 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?

24.0%

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 (18.6%) are higher than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: RAI's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: RAI's earnings growth over the past year (31%) exceeds its 5-year average (24% per year).

Earnings vs Industry: RAI earnings growth over the past year (31%) exceeded the Construction industry 11.3%.


Return on Equity

High ROE: RAI's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is RA International Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAI's short term assets ($52.1M) exceed its short term liabilities ($8.5M).

Long Term Liabilities: RAI's short term assets ($52.1M) 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


Next Steps

Dividend

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

2.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAI's dividend (2.68%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: RAI's dividend (2.68%) is low compared to the top 25% of dividend payers in the UK market (5.38%).


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 low payout ratio (22.3%), 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

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.2yrs

Average board tenure


CEO

Soraya Narfeldt

no data

Tenure

US$329,000

Compensation

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. She founded RA International in 2004. She has been s ...


CEO Compensation Analysis

Compensation vs Market: Soraya's total compensation ($USD414.02K) is about average for companies of similar size in the UK market ($USD347.71K).

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


Board Members

NamePositionTenureCompensationOwnership
Soraya Narfeldt
CEO & Executive Directorno dataUS$329.00k55.35% $43.1m
Andrew Bolter
CFO & Executive Director2.17yrsUS$211.00k0.52% $405.0k
Lars Narfeldt
COO & Executive Director2.33yrsUS$207.00k24.25% $18.9m
Ian Henderson
Independent Non-Executive Director2.17yrsUS$50.50kno data
Alec Carstairs
Independent Non-Executive Director2.17yrsUS$50.50k0.063% $48.9k
Sangita Vadilal Shah
Independent Non-Executive Chairno dataUS$80.80k0.025% $19.3k
Philip Haydn-Slater
Independent Non-Executive Director2.17yrsUS$50.50k0.058% $45.0k

2.2yrs

Average Tenure

Experienced Board: RAI's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: 2004
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£77.929m
  • Shares outstanding: 173.18m
  • 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 paved roads, gravel roads, temporary bridges, helipads/runway construction, and drainage systems ; brick and mortar, prefabricated, tented, hard wall, soft wall, single-story, multi-story, and containerized units; accommodation camps, workshops, warehouses, embassies, and offices; and power generation projects, water and waste management plants, and landfills, as well as offers road rehabilitation and horizontal engineering. It also provides integrated facilities management services, including facilities management and maintenance; plant and equipment operation and maintenance; catering, hospitality, and accommodation; cleaning and laundry; waste management; vehicle fleet operation and maintenance; and pest and vector control services. In addition, the company provides supply chain services comprising local, regional, and global procurement of equipment, material, and consumables; consolidation and repacking services; land, sea, and air logistics; last mile logistics; warehousing and yard management; inventory control; and freight forwarding and clearance of goods. It serves humanitarian agencies, governments, and natural resource companies. RA International Group PLC was founded in 2004 and is headquartered in Dubai, the United Arab Emirates. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 20:58
End of Day Share Price2020/07/07 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.