RVRC Holding (OM:RVRC) - Share price, News & Analysis

RVRC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	5/6
Financial Health	5/6
Dividends	1/6

RVRC Stock Overview

RVRC Holding AB (publ) provides outdoor and active lifestyle apparels in Sweden.

Rewards

Trading at 58% below our estimate of its fair value

Earnings are forecast to grow 20.06% per year

Earnings grew by 99% over the past year

Risk Analysis

High level of non-cash earnings

RVRC Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RVRC Holding
Historical stock prices
Current Share Price	kr71.65
52 Week High	kr109.60
52 Week Low	kr66.00
Beta	0
1 Month Change	-9.30%
3 Month Change	-11.27%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-18.39%

Recent News & Updates

May 18

We Think That There Are Issues Underlying RVRC Holding's (STO:RVRC) Earnings

RVRC Holding AB (publ) ( STO:RVRC ) just reported some strong earnings, and the market rewarded them with a positive...

Shareholder Returns

	RVRC	SE Specialty Retail	SE Market
7D	-4.8%	-2.4%	0.3%
1Y	n/a	-37.9%	-12.7%

Return vs Industry: Insufficient data to determine how RVRC performed against the Swedish Specialty Retail industry.

Return vs Market: Insufficient data to determine how RVRC performed against the Swedish Market.

Price Volatility

Is RVRC's price volatile compared to industry and market?
RVRC volatility
RVRC Average Weekly Movement	6.3%
Specialty Retail Industry Average Movement	6.2%
Market Average Movement	7.8%
10% most volatile stocks in SE Market	13.1%
10% least volatile stocks in SE Market	5.0%

Stable Share Price: RVRC is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RVRC's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	115	Pernilla Nyrensten	https://www.revolutionrace.com

RVRC Holding AB (publ) provides outdoor and active lifestyle apparels in Sweden. It offers pants, jackets, sweaters and mid layers, and base layers apparels, as well as accessories, such as underwear, socks, shoes, hats, beanies, belts, gloves, collars, neck warmers, waterproofing and clothing care products, and other accessories through online stores. RVRC Holding AB (publ) was founded in 2013 and is based in Borås, Sweden.

RVRC Holding Fundamentals Summary

How do RVRC Holding's earnings and revenue compare to its market cap?
RVRC fundamental statistics
Market Cap	kr8.09b
Earnings (TTM)	kr277.56m
Revenue (TTM)	kr1.29b

29.1x

P/E Ratio

6.3x

P/S Ratio

Is RVRC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RVRC income statement (TTM)
Revenue	kr1.29b
Cost of Revenue	kr423.00m
Gross Profit	kr863.99m
Other Expenses	kr586.43m
Earnings	kr277.56m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 16, 2022

Earnings per share (EPS)	2.46
Gross Margin	67.13%
Net Profit Margin	21.57%
Debt/Equity Ratio	6.6%

How did RVRC perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RVRC (SEK71.65) is trading below our estimate of fair value (SEK170.54)

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

Price To Earnings Ratio

PE vs Industry: RVRC is poor value based on its PE Ratio (29.1x) compared to the Swedish Specialty Retail industry average (16.4x).

PE vs Market: RVRC is poor value based on its PE Ratio (29.1x) compared to the Swedish market (17.4x).

Price to Earnings Growth Ratio

PEG Ratio: RVRC is poor value based on its PEG Ratio (1.5x)

Price to Book Ratio

PB vs Industry: RVRC is overvalued based on its PB Ratio (8.8x) compared to the SE Specialty Retail industry average (2.7x).

Future Growth

How is RVRC Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RVRC's forecast earnings growth (20.1% per year) is above the savings rate (0.3%).

Earnings vs Market: RVRC's earnings (20.1% per year) are forecast to grow faster than the Swedish market (9.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RVRC's revenue (24.1% per year) is forecast to grow faster than the Swedish market (5.8% per year).

High Growth Revenue: RVRC's revenue (24.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: RVRC's Return on Equity is forecast to be high in 3 years time (34.6%)

Past Performance

How has RVRC Holding performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

49.0%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: RVRC's current net profit margins (21.6%) are higher than last year (19.1%).

Past Earnings Growth Analysis

Earnings Trend: RVRC's earnings have grown significantly by 49% per year over the past 5 years.

Accelerating Growth: RVRC's earnings growth over the past year (99%) exceeds its 5-year average (49% per year).

Earnings vs Industry: RVRC earnings growth over the past year (99%) exceeded the Specialty Retail industry 35.7%.

Return on Equity

High ROE: RVRC's Return on Equity (30.3%) is considered high.

Financial Health

How is RVRC Holding's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RVRC's short term assets (SEK505.8M) exceed its short term liabilities (SEK293.7M).

Long Term Liabilities: RVRC's short term assets (SEK505.8M) exceed its long term liabilities (SEK100.0M).

Debt to Equity History and Analysis

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

Reducing Debt: Insufficient data to determine if RVRC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RVRC's debt is well covered by operating cash flow (78.1%).

Interest Coverage: RVRC's interest payments on its debt are well covered by EBIT (103.2x coverage).

Balance Sheet

Dividend

What is RVRC Holding current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RVRC's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.46%).

High Dividend: RVRC's dividend (0.89%) is low compared to the top 25% of dividend payers in the Swedish market (4.88%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether RVRC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RVRC's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), RVRC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (162.6%), RVRC's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure

CEO

Pernilla Nyrensten (49 yo)

9.33yrs

Tenure

kr958,000

Compensation

Ms. Pernilla Nyrensten is President, CEO & Director of RVRC Holding AB (publ) from 2013. Her Education and professional experience: Her Previous experience includes several leading positions within and par...

CEO Compensation Analysis

Compensation vs Market: Pernilla's total compensation ($USD97.53K) is below average for companies of similar size in the Swedish market ($USD707.22K).

Compensation vs Earnings: Pernilla's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: RVRC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: RVRC's board of directors are considered experienced (4.3 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: RVRC only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30