Rexel S.A. distributes low and ultra-low voltage electrical products to professional customers and markets in the fields of construction, industry, and services.
The last earnings update was 99 days ago.
Discounted Cash Flow Calculation for OTCPK:RXLS.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:RXLS.F DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Rexel's share price is below the future cash flow value, and at a moderate discount (> 20%).
Rexel's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Rexel's earnings available for a low price, and how does
this compare to other companies in the same industry?
Rexel's earnings are expected to grow significantly at over 20% yearly.
Rexel's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Rexel's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Patrick Berard has been the Chief Executive Officer of Rexel SA since July 1, 2016 and served as its Europe General Manager since November 8, 2016 until 2019. Mr. Berard serves as Europe Chief Executive Officer at Rexel S.A. since 2019. Mr. Berard served as Senior Vice President of Europe at Rexel SA since August 5, 2015 until July 1, 2016. He served as Senior Vice-President of Southern, Central and Eastern Europe at Rexel SA since July 2015 until August 5, 2015. He served as Senior Vice President of Rexel Europe at Rexel SA since July 1, 2015. He served as Senior Vice President of Southern, Central & Eastern Europe at Rexel SA. from October 1, 2014 to July 1, 2015. He served as Senior Vice President of Southern Europe at Rexel SA since 2007. He served as Senior Vice President of France at Rexel SA and also served as its Chief Executive Officer of France. He is Director of Rexel Sverige AB (Sweden – unlisted company). He is Director of Rexel North America Inc. (Canada – unlisted company). He is Chairman of the Board of Directors of Rexel USA Inc. (United States – unlisted company). He is Chairman of the Board of Directors of Rexel Italia S.p.A (Italy – unlisted company). He was President of Rexel France (France – unlisted company). He was President of Dismo France (France – unlisted company). He was President of Sofinther (France – unlisted company). He was Director of Rexel Belgium SA (Belgium – unlisted company). He was Director of Electro-Industrie en Acoustiek NV (Belgium – unlisted company). He was Director of Rexel Luxembourg SA (Luxembourg – unlisted company). He was Director of Elektroskansdia Norge AS (Norway – unlisted company). He was Director of Elektroskansdia Norway Holdings AS (Norway – unlisted company). He was Director of Rexel Finland Oy (Finland – unlisted company). He was Director of Rexel UK limited (United Kingdom – unlisted company). He was Director of Rexel Holding Benelux BV (the Netherlands – unlisted company). He was Chairman of the Board of Directors of ABM Rexel (Spain – unlisted company). He was Director of Moel AB (Sweden – unlisted company). He served as the Chairman, Chief Executive Officer and President of Pinault Bois et Matériaux S.A. He has been a Director of Rexel S.A., since May 23, 2017. In 2003, he joined Rexel as Chief Executive Officer of Rexel France. In 2007, he also became Manager of the southern Europe area (France, Italy, Spain, Portugal), then, in 2013, of Belgium and Luxembourg, prior to being appointed Chief Executive Officer Europe in 2015. His career started in 1978 with the Pulp and Paper Research Institute of Canada. From 1980 to 1987, Mr. Berard was a consultant with McKinsey, then Manager of Planning and Strategy of the Industry and Engineering Division of Thomson. From 1988 to 1999, he occupied various duties with Polychrome, including those of Chief Executive Officer Europe and Vice President of the Group. He served as Operations Manager of Antalis (Groupe Arjo Wiggins) from 1999 to 2002, prior to being appointed, in 2002 as Chairman and Chief Executive Officer of Pinault Bois & Matériaux, a company of the Kering group (formerly PPR Group). Mr. Berard holds PhD in Economics from the University of Grenoble.
Patrick's compensation has been consistent with company performance over the past year, both up more than 20%.
Patrick's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Rexel management team is about average.
CEO, CEO of Europe & Director
Group Chief Financial Officer
Investors Relations Director
Group Human Resources Director
Senior Vice President of Southern and Western Europe
Senior Vice President - Canada
CEO of Rexel Canada
Chief Executive Officer of Asia-Pacific
Group Digital & IT Transformation Director and CEO Nordics
CEO of UK/Ireland-Benelux
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Rexel board of directors is about average.
Rexel S.A. distributes low and ultra-low voltage electrical products to professional customers and markets in the fields of construction, industry, and services. It offers electrical installation equipment, conduits and cables, lighting, security and communication, climate control, tools, and white and brown goods. As of February 13, 2019, the company operated a network of approximately 2,000 branches in 26 countries. It principally operates in Europe, the United States, Canada, Australia, New Zealand, India, Middle East, and China. Rexel S.A. was founded in 1967 and is headquartered in Paris, France.
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