AIM:RUA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Rua Life Sciences Plc, together with its subsidiaries, provides polymers, services, and products to the medical device industry in Europe, the United States, and internationally. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has Rua Life Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RUA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RUA's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

12.3%

RUA

-1.0%

GB Medical Equipment

-0.3%

GB Market


1 Year Return

74.9%

RUA

-11.5%

GB Medical Equipment

-11.0%

GB Market

Return vs Industry: RUA exceeded the UK Medical Equipment industry which returned -11.7% over the past year.

Return vs Market: RUA exceeded the UK Market which returned -10% over the past year.


Shareholder returns

RUAIndustryMarket
7 Day12.3%-1.0%-0.3%
30 Day20.8%1.8%10.2%
90 Day18.5%-3.1%6.4%
1 Year74.9%74.9%-9.7%-11.5%-7.4%-11.0%
3 Year595.7%595.7%15.4%8.7%0.9%-11.5%
5 Year461.4%461.4%35.1%24.1%26.5%-2.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rua Life Sciences undervalued compared to its fair value and its price relative to the market?

10.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RUA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RUA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RUA is unprofitable, so we can't compare its PE Ratio to the GB Medical Equipment industry average.

PE vs Market: RUA 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 RUA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RUA is overvalued based on its PB Ratio (10.3x) compared to the GB Medical Equipment industry average (3.5x).


Next Steps

Future Growth

How is Rua Life Sciences forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

78.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: RUA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RUA's is expected to become profitable in the next 3 years.

Revenue vs Market: RUA's revenue (60.6% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: RUA's revenue (60.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RUA's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Rua Life Sciences performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUA is currently unprofitable.

Growing Profit Margin: RUA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RUA is unprofitable, and losses have increased over the past 5 years at a rate of 18.1% per year.

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

Earnings vs Industry: RUA is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-36.8%).


Return on Equity

High ROE: RUA has a negative Return on Equity (-35.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rua Life Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: RUA's short term assets (£2.2M) exceed its short term liabilities (£219.0K).

Long Term Liabilities: RUA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RUA is debt free.

Reducing Debt: RUA has not had any debt for 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: RUA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: RUA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 2.7% each year


Next Steps

Dividend

What is Rua Life Sciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RUA'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 RUA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RUA'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?

3.3yrs

Average board tenure


CEO

David Richmond (57 yo)

0.58

Tenure

UK£34,543

Compensation

Mr. David Muir Richmond serves as Chief Executive Officer at Rua Life Sciences Plc since April 1, 2020 and serves as its Director. Mr. Richmond founded Culzean Medical Devices Ltd.,(also known as RUA Medi...


Board Members

NamePositionTenureCompensationOwnership
William Brown
Executive Chairman & Finance Director8.33yrsUK£246.76k3.1%
£ 836.0k
David Richmond
CEO & Director0.58yrUK£34.54k9.38%
£ 2.5m
John McKenna
Director of Clinical Marketing & Executive Director4.08yrsUK£77.73k0.11%
£ 31.0k
James Wright
Independent Non-Executive Director15yrsUK£30.00k3.92%
£ 1.1m
John Ely
Independent Non-Executive Director2.42yrsUK£35.48kno data
Geoffrey Berg
Independent Non-Executive Director2.42yrsUK£34.54k0.10%
£ 27.5k

3.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: RUA's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 11.3%.


Top Shareholders

Company Information

Rua Life Sciences Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rua Life Sciences Plc
  • Ticker: RUA
  • Exchange: AIM
  • Founded: 1996
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: UK£26.983m
  • Shares outstanding: 16.35m
  • Website: https://www.rualifesciences.com

Number of Employees


Location

  • Rua Life Sciences Plc
  • 2 Drummond Crescent
  • Irvine
  • Ayrshire
  • KA11 5AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 1997
AOHADB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1997

Biography

Rua Life Sciences Plc, together with its subsidiaries, provides polymers, services, and products to the medical device industry in Europe, the United States, and internationally. The company operates as a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 19:09
End of Day Share Price2020/11/26 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.