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
Flawless balance sheet and undervalued.
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.
7 Day Return
1 Year Return
Return vs Industry: RAK exceeded the NZ Electronic industry which returned 34.1% over the past year.
Return vs Market: RAK exceeded the NZ Market which returned 9% over the past year.
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
2 weeks ago | Simply Wall StDo Its Financials Have Any Role To Play In Driving Rakon Limited's (NZSE:RAK) Stock Up Recently?
1 month ago | Simply Wall StShould You Be Adding Rakon (NZSE:RAK) To Your Watchlist Today?
2 months ago | Simply Wall StInvestors Who Bought Rakon (NZSE:RAK) Shares Three Years Ago Are Now Up 82%
Is Rakon undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RAK (NZ$0.4) is trading below our estimate of fair value (NZ$4.84)
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 (12.5x) compared to the XO Electronic industry average (28.4x).
PE vs Market: RAK is good value based on its PE Ratio (12.5x) compared to the NZ market (23x).
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 (0.9x) compared to the XO Electronic industry average (4.4x).
How is Rakon forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- Examine whether Rakon is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Rakon competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Tech industry.
How has Rakon performed over the past 5 years?
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 -1.1%.
Return on Equity
High ROE: RAK's Return on Equity (7.3%) is considered low.
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).
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brent Robinson (61 yo)
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...
|CEO, MD||34.83yrs||NZ$837.33k||4.37% |
|Chief Financial Officer||2yrs||no data||no data|
|Chief Operating Officer||0.83yr||no data||no data|
|Chief Marketing Officer||30.83yrs||no data||4.37% |
|Global General Manager of People & Capability||4.83yrs||no data||no data|
|Head of Global Engineering||2.5yrs||no data||no data|
|Head of Global Product Management||no data||no data||no data|
|Managing Director of India||no data||no data||no data|
|Company Secretary||2yrs||no data||no data|
Experienced Management: RAK's management team is considered experienced (2.5 years average tenure).
|CEO, MD||34.83yrs||NZ$837.33k||4.37% |
|Independent Chairman||2.25yrs||NZ$120.00k||0.33% |
|Independent Director||3.67yrs||NZ$60.00k||0.053% |
|Independent Director||3.67yrs||NZ$60.00k||0.92% |
|Non-Executive Director||3.67yrs||NZ$60.00k||no data|
|Independent Director||2.17yrs||NZ$60.00k||0.057% |
Experienced Board: RAK's board of directors are considered experienced (3.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Rakon Limited's company bio, employee growth, exchange listings and data sources
- Name: Rakon Limited
- Ticker: RAK
- Exchange: NZSE
- Founded: 1967
- Industry: Electronic Components
- Sector: Tech
- Market Cap: NZ$87.380m
- Shares outstanding: 226.96m
- Website: https://www.rakon.com
Number of Employees
- Rakon Limited
- 8 Sylvia Park Road
- Mt Wellington
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RAK||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||May 2006|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/23 10:32|
|End of Day Share Price||2020/11/23 00:00|
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.