company background image
REDS

Red Star ExpressNGSE:REDSTAREX Stock Report

Market Cap

₦3.0b

7D

-2.5%

1Y

-0.4%

Updated

19 Oct, 2021

Data

Company Financials
REDSTAREX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

REDSTAREX Overview

Red Star Express Plc, together with its subsidiaries, engages in the provision of courier, mail room management, outsourcing, freight services, logistics, warehousing, and general haulage services in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for Red Star Express
Historical stock prices
Current Share Price₦3.17
52 Week High₦2.91
52 Week Low₦3.56
Beta0.56
1 Month Change2.26%
3 Month Change-1.03%
1 Year Change-0.43%
3 Year Change-29.00%
5 Year Change-18.35%
Change since IPO-22.24%

Recent News & Updates

Shareholder Returns

REDSTAREXNG LogisticsNG Market
7D-2.5%-0.6%1.1%
1Y-0.4%64.6%38.9%

Return vs Industry: REDSTAREX underperformed the NG Logistics industry which returned 64.6% over the past year.

Return vs Market: REDSTAREX underperformed the NG Market which returned 38.9% over the past year.

Price Volatility

Is REDSTAREX's price volatile compared to industry and market?
REDSTAREX volatility
REDSTAREX Beta0.56
Industry Beta0.92
Market Beta1

Stable Share Price: REDSTAREX is less volatile than 75% of NG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: REDSTAREX's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19921,936Sola Obaborihttps://www.redstarplc.com

Red Star Express Plc, together with its subsidiaries, engages in the provision of courier, mail room management, outsourcing, freight services, logistics, warehousing, and general haulage services in Nigeria. The company operates through four segments: Courier Service, Freight Services, Logistics, and Support Services. It offers air and sea freight of heavyweight cargo, container handling, packing, movements and removals of personal effects, clearing and forwarding, and door-to-door pickup and delivery services; and agro trade services, and last-mile delivery for agro produce, as well as delivers documents and parcels, and acts as cargo sales agents for airlines.

Red Star Express Fundamentals Summary

How do Red Star Express's earnings and revenue compare to its market cap?
REDSTAREX fundamental statistics
Market Cap₦3.03b
Earnings (TTM)₦442.74m
Revenue (TTM)₦10.85b

6.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REDSTAREX income statement (TTM)
Revenue₦10.85b
Cost of Revenue₦8.66b
Gross Profit₦2.19b
Expenses₦1.75b
Earnings₦442.74m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin20.18%
Net Profit Margin4.08%
Debt/Equity Ratio10.7%

How did REDSTAREX perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

10%

Payout Ratio

Valuation

Is Red Star Express 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: REDSTAREX (NGN3.17) is trading below our estimate of fair value (NGN7.55)

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


Price To Earnings Ratio

PE vs Industry: REDSTAREX is good value based on its PE Ratio (6.8x) compared to the African Logistics industry average (21x).

PE vs Market: REDSTAREX is good value based on its PE Ratio (6.8x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REDSTAREX is good value based on its PB Ratio (0.7x) compared to the XF Logistics industry average (0.9x).


Future Growth

How is Red Star Express forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Transportation 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 Red Star Express 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 Red Star Express performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REDSTAREX has a high level of non-cash earnings.

Growing Profit Margin: REDSTAREX's current net profit margins (4.1%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: REDSTAREX's earnings have declined by 9.3% per year over the past 5 years.

Accelerating Growth: REDSTAREX's earnings growth over the past year (305.3%) exceeds its 5-year average (-9.3% per year).

Earnings vs Industry: REDSTAREX earnings growth over the past year (305.3%) exceeded the Logistics industry 19.3%.


Return on Equity

High ROE: REDSTAREX's Return on Equity (10.3%) is considered low.


Financial Health

How is Red Star Express's financial position?


Financial Position Analysis

Short Term Liabilities: REDSTAREX's short term assets (NGN4.6B) exceed its short term liabilities (NGN2.8B).

Long Term Liabilities: REDSTAREX's short term assets (NGN4.6B) exceed its long term liabilities (NGN563.7M).


Debt to Equity History and Analysis

Debt Level: REDSTAREX's debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: REDSTAREX's debt to equity ratio has increased from 0.9% to 10.7% over the past 5 years.

Debt Coverage: REDSTAREX's debt is well covered by operating cash flow (207.6%).

Interest Coverage: REDSTAREX's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Dividend

What is Red Star Express's current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REDSTAREX's dividend (1.53%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.25%).

High Dividend: REDSTAREX's dividend (1.53%) is low compared to the top 25% of dividend payers in the NG market (7.24%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: REDSTAREX is not paying a notable dividend for the NG market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Sola Obabori

5.08yrs

Tenure

Mr. Peter Olusola Obabori, also known as Sola, Ph D, fnimn & M.IoD has been Chief Executive Officer and Group Managing Director of Red Star Express Plc since April 1, 2016 and since September 1, 2016 and h...


Leadership Team

Experienced Management: REDSTAREX's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: REDSTAREX's board of directors are considered experienced (4.4 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

Red Star Express Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Red Star Express Plc
  • Ticker: REDSTAREX
  • Exchange: NGSE
  • Founded: 1992
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: ₦3.026b
  • Shares outstanding: 954.42m
  • Website: https://www.redstarplc.com

Number of Employees


Location

  • Red Star Express Plc
  • 70, International Airport Road
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:21
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.