LSE:RHIM

Stock Analysis Report

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Executive Summary

RHI Magnesita N.V. produces and sells refractory products used in high-temperature industrial processes worldwide. More Details


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RHIM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RHIM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

RHIM

2.4%

GB Basic Materials

-2.3%

GB Market


1 Year Return

31.3%

RHIM

3.0%

GB Basic Materials

1.1%

GB Market

Return vs Industry: RHIM exceeded the UK Basic Materials industry which returned 3% over the past year.

Return vs Market: RHIM exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

RHIMIndustryMarket
7 Day2.1%2.4%-2.3%
30 Day1.2%5.5%-0.1%
90 Day20.9%11.5%4.2%
1 Year33.1%31.3%3.5%3.0%7.1%1.1%
3 Year-5.2%-11.4%14.3%7.4%9.7%-3.4%
5 Yearn/a65.7%51.9%36.9%10.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RHIM (£39.26) is trading below our estimate of fair value (£78.16)

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


Price To Earnings Ratio

PE vs Industry: RHIM is good value based on its PE Ratio (29.3x) compared to the GB Basic Materials industry average (29.4x).

PE vs Market: RHIM is poor value based on its PE Ratio (29.3x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: RHIM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: RHIM is overvalued based on its PB Ratio (3x) compared to the GB Basic Materials industry average (1.9x).


Next Steps

Future Growth

How is RHI Magnesita forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

35.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHIM's forecast earnings growth (35% per year) is above the savings rate (1%).

Earnings vs Market: RHIM's earnings (35% per year) are forecast to grow faster than the UK market (23.1% per year).

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

Revenue vs Market: RHIM's revenue (4.4% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: RHIM's revenue (4.4% 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 RHIM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RHI Magnesita performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHIM has a large one-off loss of €132.8M impacting its June 30 2020 financial results.

Growing Profit Margin: RHIM's current net profit margins (3%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: RHIM's earnings have grown significantly by 35.1% per year over the past 5 years.

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

Earnings vs Industry: RHIM had negative earnings growth (-62.5%) over the past year, making it difficult to compare to the Basic Materials industry average (-10.4%).


Return on Equity

High ROE: RHIM's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is RHI Magnesita's financial position?


Financial Position Analysis

Short Term Liabilities: RHIM's short term assets (€1.5B) exceed its short term liabilities (€718.2M).

Long Term Liabilities: RHIM's short term assets (€1.5B) do not cover its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: RHIM's debt to equity ratio (150.6%) is considered high.

Reducing Debt: RHIM's debt to equity ratio has increased from 105.6% to 150.6% over the past 5 years.

Debt Coverage: RHIM's debt is well covered by operating cash flow (31.7%).

Interest Coverage: RHIM's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

What is RHI Magnesita current dividend yield, its reliability and sustainability?

3.63%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.6yrs

Average management tenure


CEO

Stefan Borgas (56 yo)

3.33yrs

Tenure

€1,490,427

Compensation

Mr. Stefan Borgas, MBA has been the Chief Executive Officer of Magnesita Refratários S.A. (formerly known as RHI Magnesita N.V.). since October 2017 and Executive Director since June 20, 2017. Mr. Borgas s...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD1.80M) is about average for companies of similar size in the UK market ($USD1.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Borgas
CEO & Executive Director3.33yrs€1.49m0.037%
€ 703.6k
Ian Botha
CFO, Finance Director & Executive Director1.67yrs€831.47kno data
Gerd Schubert
Chief Operations Officer4.08yrsno datano data
Eduardo Guardiano Gotilla
Vice President of Corporate Finance & Investor Relationsno datano datano data
Luís Rodolfo Bittencourt
Chief Technology Officer3.08yrsno datano data
Guy Marks
Head of Investor Relationsno datano datano data
Ticiana Kobel
Executive VP & Legal Counsel1.08yrsno datano data
Stefan Rathausky
Head of Cement & Lime and Head of Corporate Communicationsno datano datano data
Gustavo Lucio Franco
Chief Sales Officer2.08yrsno datano data
Simone Oremovic
Executive Vice President People3.58yrsno datano data
Rajah Jayendran
Senior VP & Head of Operations Europeno datano datano data
Sally Caswell
Company Secretary1.08yrsno datano data

2.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: RHIM's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Borgas
CEO & Executive Director3.33yrs€1.49m0.037%
€ 703.6k
Ian Botha
CFO, Finance Director & Executive Director1.67yrs€831.47kno data
Celia Baxter
Independent Non-Executive Director3.33yrs€103.27k0.0021%
€ 39.2k
Herbert Cordt
Chairman3.33yrs€259.64k0.72%
€ 13.7m
Karl Sevelda
Independent Non-Executive Director3.33yrs€85.56k0.0021%
€ 39.2k
Andrew Hosty
Independent Non-Executive Director3.33yrs€94.96k0.00078%
€ 14.9k
Stanislaus Prinz zu Sayn Wittgenstein-Berleburg
Non-Independent Non-Executive Director3.33yrs€76.71kno data
David Schlaff
Non-Independent Non-Executive Director3.33yrs€76.71kno data
John Ramsay
Deputy Chairman & Senior Independent Director0.33yr€97.37k0.0044%
€ 83.6k
Franz Reiter
Employee Representative Director3.25yrsno datano data
Michael Schwarz
Employee Representative Director3.33yrsno datano data
Fiona Paulus
Independent Non-Executive Director2.17yrs€85.01kno data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: RHIM'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

RHI Magnesita N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RHI Magnesita N.V.
  • Ticker: RHIM
  • Exchange: LSE
  • Founded: 1834
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: UK£1.905b
  • Shares outstanding: 48.51m
  • Website: https://www.rhimagnesita.com

Number of Employees


Location

  • RHI Magnesita N.V.
  • Kranichberggasse 6
  • Vienna
  • Vienna
  • 1120
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RHIMWBAG (Wiener Boerse AG)YesNew Ordinary SharesATEUROct 2017
RHIMLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPOct 2017
RHFDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEUROct 2017
RHIMLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPOct 2017
RMGN.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDOct 2017
RHHM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2018

Biography

RHI Magnesita N.V. produces and sells refractory products used in high-temperature industrial processes worldwide. The company operates in Steel and Industrial segments. It offers solutions for various fur...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 19:00
End of Day Share Price2021/02/26 00:00
Earnings2020/06/30
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.