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RAK

RakonNZSE:RAK Stock Report

Last Price

NZ$1.62

Market Cap

NZ$367.7m

7D

-18.2%

1Y

116.0%

Updated

24 Jan, 2022

Data

Company Financials +
RAK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

RAK Stock Overview

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

Rakon Competitors

Kyocera

TSE:6971

JP¥2.5t

Seiko Epson

TSE:6724

JP¥697.9b

SiTime

NasdaqGM:SITM

US$4.0b

TXC

TWSE:3042

NT$29.8b

Price History & Performance

Summary of all time highs, changes and price drops for Rakon
Historical stock prices
Current Share PriceNZ$1.62
52 Week HighNZ$2.27
52 Week LowNZ$0.65
Beta1.07
1 Month Change-16.92%
3 Month Change3.19%
1 Year Change116.00%
3 Year Change362.86%
5 Year Change690.24%
Change since IPO-31.36%

Recent News & Updates

May 06
Should You Be Adding Rakon (NZSE:RAK) To Your Watchlist Today?

Should You Be Adding Rakon (NZSE:RAK) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

RAKNZ ElectronicNZ Market
7D-18.2%-5.9%-3.2%
1Y116.0%28.7%-11.4%

Return vs Industry: RAK exceeded the NZ Electronic industry which returned 28.7% over the past year.

Return vs Market: RAK exceeded the NZ Market which returned -11.4% over the past year.

Price Volatility

Is RAK's price volatile compared to industry and market?
RAK volatility
RAK Average Weekly Movement6.9%
Electronic Industry Average Movement7.1%
Market Average Movement3.8%
10% most volatile stocks in NZ Market6.5%
10% least volatile stocks in NZ Market2.4%

Stable Share Price: RAK is more volatile than 90% 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.

About the Company

FoundedEmployeesCEOWebsite
1967n/aBrent Robinsonhttps://www.rakon.com

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 crystal resonators, tuning fork crystals, space crystals, standard SMD crystals, crystal oscillators, voltage control crystal oscillators and clock oscillators, temperature compensated crystal oscillators, oven controlled crystal oscillators, and oven controlled surface acoustic wave (SAW) oscillators. It also offers a range of crystal filters, including bandpass filters, notch/stop band filters, linear phase or constant group delay filters, phase and/or amplitude matching filters, and monolithic filters; and frequency multipliers.

Rakon Fundamentals Summary

How do Rakon's earnings and revenue compare to its market cap?
RAK fundamental statistics
Market CapNZ$367.68m
Earnings (TTM)NZ$23.93m
Revenue (TTM)NZ$154.14m

15.4x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAK income statement (TTM)
RevenueNZ$154.14m
Cost of RevenueNZ$78.84m
Gross ProfitNZ$75.30m
ExpensesNZ$51.37m
EarningsNZ$23.93m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin48.85%
Net Profit Margin15.52%
Debt/Equity Ratio13.5%

How did RAK perform over the long term?

See historical performance and comparison

Valuation

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

15.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAK (NZ$1.62) is trading above our estimate of fair value (NZ$1.08)

Significantly Below Fair Value: RAK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAK is good value based on its PE Ratio (15.4x) compared to the Oceanic Electronic industry average (16.8x).

PE vs Market: RAK is good value based on its PE Ratio (15.4x) compared to the NZ market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: RAK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RAK is good value based on its PB Ratio (3x) compared to the XO Electronic industry average (4x).


Future Growth

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

-8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAK's earnings are forecast to decline over the next 3 years (-8% per year).

Earnings vs Market: RAK's earnings are forecast to decline over the next 3 years (-8% per year).

High Growth Earnings: RAK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RAK's revenue (6.5% per year) is forecast to grow faster than the NZ market (4.8% per year).

High Growth Revenue: RAK's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAK's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has Rakon performed over the past 5 years?

56.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAK has high quality earnings.

Growing Profit Margin: RAK's current net profit margins (15.5%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: RAK has become profitable over the past 5 years, growing earnings by 56.7% per year.

Accelerating Growth: RAK's earnings growth over the past year (228.7%) exceeds its 5-year average (56.7% per year).

Earnings vs Industry: RAK earnings growth over the past year (228.7%) exceeded the Electronic industry 203.4%.


Return on Equity

High ROE: RAK's Return on Equity (19.8%) is considered low.


Financial Health

How is Rakon's financial position?


Financial Position Analysis

Short Term Liabilities: RAK's short term assets (NZ$116.7M) exceed its short term liabilities (NZ$32.6M).

Long Term Liabilities: RAK's short term assets (NZ$116.7M) exceed its long term liabilities (NZ$24.2M).


Debt to Equity History and Analysis

Debt Level: RAK has more cash than its total debt.

Reducing Debt: RAK's debt to equity ratio has reduced from 30.7% to 13.5% over the past 5 years.

Debt Coverage: RAK's debt is well covered by operating cash flow (101.9%).

Interest Coverage: RAK's interest payments on its debt are well covered by EBIT (10.9x coverage).


Balance Sheet


Dividend

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

1.04%

Forecast Dividend Yield


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?

3.7yrs

Average management tenure


CEO

Brent Robinson (62 yo)

36yrs

Tenure

NZ$766,857

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

Experienced Management: RAK's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: RAK's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RAK 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 employee growth, exchange listings and data sources


Key Information

  • Name: Rakon Limited
  • Ticker: RAK
  • Exchange: NZSE
  • Founded: 1967
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: NZ$367.678m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/24 15:41
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
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.