BIT:RM

Stock Analysis Report

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Executive Summary

Reno De Medici S.p.A. produces and distributes carton boards primarily in Europe. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Reno De Medici's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-3.4%

RM

-0.009%

IT Packaging

-3.6%

IT Market


1 Year Return

26.8%

RM

15.9%

IT Packaging

-11.6%

IT Market

Return vs Industry: RM exceeded the Italian Packaging industry which returned 15.9% over the past year.

Return vs Market: RM exceeded the Italian Market which returned -11.6% over the past year.


Shareholder returns

RMIndustryMarket
7 Day-3.4%-0.009%-3.6%
30 Day4.7%2.6%-2.4%
90 Day8.1%16.4%14.3%
1 Year28.4%26.8%18.4%15.9%-8.7%-11.6%
3 Year62.4%58.0%23.5%12.4%-7.4%-17.1%
5 Year222.7%206.9%76.2%51.5%24.0%-3.6%

Long-Term Price Volatility Vs. Market

How volatile is Reno De Medici's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reno De Medici undervalued compared to its fair value and its price relative to the market?

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RM (€1.03) is trading below our estimate of fair value (€1.36)

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


Price To Earnings Ratio

PE vs Industry: RM is good value based on its PE Ratio (16.2x) compared to the XE Packaging industry average (17.5x).

PE vs Market: RM is good value based on its PE Ratio (16.2x) compared to the Italian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: RM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RM is good value based on its PB Ratio (1.7x) compared to the XE Packaging industry average (1.9x).


Next Steps

Future Growth

How is Reno De Medici forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RM's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: RM's earnings (8.8% per year) are forecast to grow slower than the Italian market (24.5% per year).

High Growth Earnings: RM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RM's revenue (2.3% per year) is forecast to grow slower than the Italian market (4.1% per year).

High Growth Revenue: RM's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RM's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Reno De Medici performed over the past 5 years?

25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RM has a large one-off loss of €10.2M impacting its September 30 2020 financial results.

Growing Profit Margin: RM's current net profit margins (3.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: RM's earnings have grown significantly by 25.5% per year over the past 5 years.

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

Earnings vs Industry: RM had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Packaging industry average (20.9%).


Return on Equity

High ROE: RM's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Reno De Medici's financial position?


Financial Position Analysis

Short Term Liabilities: RM's short term assets (€243.6M) exceed its short term liabilities (€172.6M).

Long Term Liabilities: RM's short term assets (€243.6M) exceed its long term liabilities (€100.3M).


Debt to Equity History and Analysis

Debt Level: RM's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: RM's debt to equity ratio has reduced from 35.5% to 25.9% over the past 5 years.

Debt Coverage: RM's debt is well covered by operating cash flow (100.6%).

Interest Coverage: RM's interest payments on its debt are well covered by EBIT (98.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Reno De Medici current dividend yield, its reliability and sustainability?

0.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RM's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.41%).

High Dividend: RM's dividend (0.78%) is low compared to the top 25% of dividend payers in the Italian market (4.68%).


Stability and Growth of Payments

Stable Dividend: RM is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: RM is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RM is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Michele Bianchi (49 yo)

4.17yrs

Tenure

Mr. Michele Bianchi has been President and Chief Executive Officer of Reno De Medici S.p.A. since November 2, 2016. Mr. Bianchi has been General Manager of Reno De Medici S.p.A. since November 2016 and Exe...


Leadership Team

NamePositionTenureCompensationOwnership
Michele Bianchi
CEO, GM & Executive Director4.17yrsno datano data
Luca Rizzo
Chief Financial Officer2.33yrsno datano data
Chiara Borgini
Investor Relations Officer2.75yrsno datano data
Stèphane Thiollier
Marketing and Sales Managerno datano datano data
Marita Lovera
Head of Human Resources11.08yrsno datano data
Guido Vigorelli
Head of Procurement & Logistics11.33yrsno datano data
Manfred Stemmer
Executive Officerno datano datano data

4.2yrs

Average Tenure

Experienced Management: RM's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michele Bianchi
CEO, GM & Executive Director4.17yrsno datano data
Giovanni Burani
Honorary Chairman of the Boardno data€454.48kno data
Mario Cane
Chairman of Reno De Medici Iberica S Lno data€78.75kno data
Éric Laflamme
Chairman of the Board3.75yrsno datano data
Allan Hogg
Non-Executive Director4.58yrsno datano data
Giancarlo Corvace
Chairman of the Board of Statutory Auditorsno datano datano data
Giulio Antonello
Independent Director9.75yrs€13.33k0.040%
€ 154.7k
Giovanni Conti
Statutory Auditorno data€45.00kno data
Laura Guazzoni
Non-Executive-Independent Directorno data€90.00kno data
Gloria Marino
Independent Director3.75yrsno datano data
Tiziana Masolini
Statutory Auditorno datano datano data
Sara Rizzon
Director3.75yrsno datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: RM's board of directors are considered experienced (4 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

Reno De Medici S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reno De Medici S.p.A.
  • Ticker: RM
  • Exchange: BIT
  • Founded: 1967
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: €387.619m
  • Shares outstanding: 375.60m
  • Website: https://www.rdmgroup.com

Number of Employees


Location

  • Reno De Medici S.p.A.
  • Viale Isonzo 25
  • Milan
  • Milan
  • 20135
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMBIT (Borsa Italiana)YesOrdinary SharesITEURDec 1997
RDMBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURDec 1997
0K69LSE (London Stock Exchange)YesOrdinary SharesGBEURDec 1997
RMMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1997
RMDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997
RDMEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1997

Biography

Reno De Medici S.p.A. produces and distributes carton boards primarily in Europe. The company operates through White Lined Chipboard and Folding Box Board segments. It offers coated recycled carton boards;...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 20:29
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
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.