company background image
RE.

R.E.A. HoldingsLSE:RE. Stock Report

Market Cap

UK£45.8m

7D

7.7%

1Y

60.8%

Updated

30 Nov, 2021

Data

Company Financials
RE. fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RE. Stock Overview

R.E.A. Holdings plc engages in the cultivation of oil palms in the province of East Kalimantan in Indonesia.

Price History & Performance

Summary of all time highs, changes and price drops for R.E.A. Holdings
Historical stock prices
Current Share PriceUK£1.05
52 Week HighUK£1.08
52 Week LowUK£0.48
Beta0.63
1 Month Change4.50%
3 Month Change83.33%
1 Year Change60.77%
3 Year Change-59.65%
5 Year Change-65.28%
Change since IPO-41.60%

Recent News & Updates

Sep 22
R.E.A. Holdings (LON:RE.) Takes On Some Risk With Its Use Of Debt

R.E.A. Holdings (LON:RE.) Takes On Some Risk With Its Use Of Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jun 03
Shareholders May Be More Conservative With R.E.A. Holdings plc's (LON:RE.) CEO Compensation For Now

Shareholders May Be More Conservative With R.E.A. Holdings plc's (LON:RE.) CEO Compensation For Now

The underwhelming share price performance of R.E.A. Holdings plc ( LON:RE. ) in the past three years would have...

May 24
We Think R.E.A. Holdings (LON:RE.) Is Taking Some Risk With Its Debt

We Think R.E.A. Holdings (LON:RE.) Is Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Mar 30
R.E.A. Holdings (LON:RE.) Could Be Struggling To Allocate Capital

R.E.A. Holdings (LON:RE.) Could Be Struggling To Allocate Capital

When researching a stock for investment, what can tell us that the company is in decline? More often than not, we'll...

Feb 05
Breakeven Is Near for R.E.A. Holdings plc (LON:RE.)

Breakeven Is Near for R.E.A. Holdings plc (LON:RE.)

R.E.A. Holdings plc ( LON:RE. ) is possibly approaching a major achievement in its business, so we would like to shine...

Shareholder Returns

RE.GB FoodGB Market
7D7.7%-1.9%-2.6%
1Y60.8%-2.2%10.9%

Return vs Industry: RE. exceeded the UK Food industry which returned 0.2% over the past year.

Return vs Market: RE. exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is RE.'s price volatile compared to industry and market?
RE. volatility
RE. Average Weekly Movement8.6%
Food Industry Average Movement4.2%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RE. is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RE.'s weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19067,963Carol Gysinhttps://www.rea.co.uk

R.E.A. Holdings plc engages in the cultivation of oil palms in the province of East Kalimantan in Indonesia. The company produces and sells crude palm oil and crude palm kernel oil in its agricultural land allocations comprising approximately 75,000 hectares.

R.E.A. Holdings Fundamentals Summary

How do R.E.A. Holdings's earnings and revenue compare to its market cap?
RE. fundamental statistics
Market CapUS$60.63m
Earnings (TTM)-US$7.67m
Revenue (TTM)US$164.40m

0.4x

P/S Ratio

-7.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RE. income statement (TTM)
RevenueUS$164.40m
Cost of RevenueUS$89.84m
Gross ProfitUS$74.56m
ExpensesUS$82.23m
Earnings-US$7.67m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.17
Gross Margin45.35%
Net Profit Margin-4.66%
Debt/Equity Ratio89.7%

How did RE. perform over the long term?

See historical performance and comparison

Valuation

Is R.E.A. Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RE. (£1.05) is trading below our estimate of fair value (£10.84)

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


Price To Earnings Ratio

PE vs Industry: RE. is unprofitable, so we can't compare its PE Ratio to the UK Food industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RE. is good value based on its PB Ratio (0.3x) compared to the GB Food industry average (1.3x).


Future Growth

How is R.E.A. Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as R.E.A. Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has R.E.A. Holdings performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RE. is currently unprofitable.

Growing Profit Margin: RE. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RE. is unprofitable, but has reduced losses over the past 5 years at a rate of 12.5% per year.

Accelerating Growth: Unable to compare RE.'s earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RE. is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (12.2%).


Return on Equity

High ROE: RE. has a negative Return on Equity (-1.97%), as it is currently unprofitable.


Financial Health

How is R.E.A. Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RE.'s short term assets ($81.5M) do not cover its short term liabilities ($97.9M).

Long Term Liabilities: RE.'s short term assets ($81.5M) do not cover its long term liabilities ($223.5M).


Debt to Equity History and Analysis

Debt Level: RE.'s net debt to equity ratio (78%) is considered high.

Reducing Debt: RE.'s debt to equity ratio has increased from 70.7% to 89.7% over the past 5 years.


Balance Sheet


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: Whilst unprofitable RE. has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RE. is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.5% per year.


Dividend

What is R.E.A. Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RE.'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RE.'s dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RE.'s dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RE.'s dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RE. is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RE.'s dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

7.3yrs

Average board tenure


CEO

Carol Gysin (63 yo)

4.67yrs

Tenure

US$674,731

Compensation

Ms. Carol E. Gysin has served as Managing Director and Executive Director at R.E.A. Holdings plc since February 21, 2017.


CEO Compensation Analysis

Compensation vs Market: Carol's total compensation ($USD674.73K) is above average for companies of similar size in the UK market ($USD324.53K).

Compensation vs Earnings: Carol's compensation has increased whilst the company is unprofitable.


Board Members

Experienced Board: RE.'s board of directors are considered experienced (7.3 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

R.E.A. Holdings plc's employee growth, exchange listings and data sources


Key Information

  • Name: R.E.A. Holdings plc
  • Ticker: RE.
  • Exchange: LSE
  • Founded: 1906
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£45.790m
  • Shares outstanding: 43.82m
  • Website: https://www.rea.co.uk

Number of Employees


Location

  • R.E.A. Holdings plc
  • 32-36 Great Portland Street
  • First Floor
  • London
  • Greater London
  • W1W 8QX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:38
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.