NZSE:RAK

Stock Analysis Report

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Executive Summary

Rakon Limited, together with its subsidiaries, designs, manufactures, and sells frequency control products for various applications in Asia, North America, Europe, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RAK is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RAK's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of NZ stocks.


Market Performance


7 Day Return

10.0%

RAK

1.9%

NZ Electronic

1.3%

NZ Market


1 Year Return

57.1%

RAK

40.8%

NZ Electronic

8.7%

NZ Market

Return vs Industry: RAK exceeded the NZ Electronic industry which returned 37.4% over the past year.

Return vs Market: RAK exceeded the NZ Market which returned 8.2% over the past year.


Shareholder returns

RAKIndustryMarket
7 Day10.0%1.9%1.3%
30 Day17.3%2.9%5.3%
90 Day12.8%8.9%7.2%
1 Year57.1%57.1%43.9%40.8%12.7%8.7%
3 Year109.5%109.5%141.3%126.2%49.5%30.6%
5 Year79.6%79.6%185.5%162.7%103.7%55.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rakon 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: RAK (NZ$0.44) is trading below our estimate of fair value (NZ$4.89)

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


Price To Earnings Ratio

PE vs Industry: RAK is good value based on its PE Ratio (14x) compared to the XO Electronic industry average (29.7x).

PE vs Market: RAK is good value based on its PE Ratio (14x) compared to the NZ market (23.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RAK is good value based on its PB Ratio (1x) compared to the XO Electronic industry average (3.9x).


Next Steps

Future Growth

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

28.2%

Forecasted Tech 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 Rakon 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.


Next Steps

Past Performance

How has Rakon performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAK has a large one-off gain of NZ$2.3M impacting its September 30 2020 financial results.

Growing Profit Margin: RAK's current net profit margins (6%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: RAK has become profitable over the past 5 years, growing earnings by 34% per year.

Accelerating Growth: RAK's earnings growth over the past year (171%) exceeds its 5-year average (34% per year).

Earnings vs Industry: RAK earnings growth over the past year (171%) exceeded the Electronic industry -1.3%.


Return on Equity

High ROE: RAK's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Rakon's financial position?


Financial Position Analysis

Short Term Liabilities: RAK's short term assets (NZ$89.0M) exceed its short term liabilities (NZ$41.1M).

Long Term Liabilities: RAK's short term assets (NZ$89.0M) exceed its long term liabilities (NZ$8.8M).


Debt to Equity History and Analysis

Debt Level: RAK's debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: RAK's debt to equity ratio has reduced from 20.2% to 12.9% over the past 5 years.

Debt Coverage: RAK's debt is well covered by operating cash flow (108.6%).

Interest Coverage: RAK's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Rakon current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RAK'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 RAK's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Brent Robinson (61 yo)

34.83yrs

Tenure

NZ$837,332

Compensation

Mr. Brent John Robinson has been the Managing Director and Chief Executive Officer of Rakon Limited since 1986. Mr. Robinson serves as the Chief Technology Officer of Rakon Limited and served as its Presid...


Leadership Team

NamePositionTenureCompensationOwnership
Brent Robinson
CEO, MD34.83yrsNZ$837.33k4.37%
NZ$ 4.3m
Anand Rambhai
Chief Financial Officer2yrsno datano data
Sinan Altug
Chief Operating Officer0.83yrno datano data
Darren Robinson
Chief Marketing Officer30.83yrsno data4.37%
NZ$ 4.3m
Margo Thomas
Global General Manager of People & Capability4.83yrsno datano data
Roy Cann
Head of Global Engineering2.5yrsno datano data
Borja Thomas
Head of Global Product Managementno datano datano data
Arun Parasnis
Managing Director of Indiano datano datano data
Maureen Shaddick
Company Secretary2yrsno datano data

2.5yrs

Average Tenure

Experienced Management: RAK's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brent Robinson
CEO, MD34.83yrsNZ$837.33k4.37%
NZ$ 4.3m
Bruce Irvine
Independent Chairman2.25yrsNZ$120.00k0.33%
NZ$ 320.0k
Lorraine Witten
Independent Director3.67yrsNZ$60.00k0.053%
NZ$ 51.6k
Keith Oliver
Independent Director3.67yrsNZ$60.00k0.92%
NZ$ 900.1k
Yin Tseng
Non-Executive Director3.67yrsNZ$60.00kno data
Robert Watson
Independent Director2.17yrsNZ$60.00k0.057%
NZ$ 55.9k

3.7yrs

Average Tenure

64yo

Average Age

Experienced Board: RAK's board of directors are considered experienced (3.7 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

Rakon Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rakon Limited
  • Ticker: RAK
  • Exchange: NZSE
  • Founded: 1967
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: NZ$97.594m
  • Shares outstanding: 226.96m
  • Website: https://www.rakon.com

Number of Employees


Location

  • Rakon Limited
  • 8 Sylvia Park Road
  • Mt Wellington
  • Auckland
  • 1060
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAKNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDMay 2006

Biography

Rakon Limited, together with its subsidiaries, designs, manufactures, and sells frequency control products for various applications in Asia, North America, Europe, and internationally. The company provides...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 06:02
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.