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RLO

ReunertJSE:RLO Stock Report

Market Cap

R7.9b

7D

-10.1%

1Y

44.1%

Updated

25 Oct, 2021

Data

Company Financials
RLO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends2/6

RLO Overview

Reunert Limited operates in the fields of electrical engineering, information communication technologies (ICT), and applied electronics in South Africa, Australia, Lesotho, South Asia, the United States, and Zambia.

Reunert Competitors

Bidvest Group

JSE:BVT

R64.7b

Datatec

JSE:DTC

R8.0b

Altron

JSE:AEL

R4.0b

Alviva Holdings

JSE:AVV

R1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Reunert
Historical stock prices
Current Share PriceR49.11
52 Week HighR32.85
52 Week LowR57.79
Beta0.42
1 Month Change-1.48%
3 Month Change1.95%
1 Year Change44.06%
3 Year Change-36.28%
5 Year Change-20.41%
Change since IPO1,264.17%

Recent News & Updates

Shareholder Returns

RLOZA IndustrialsZA Market
7D-10.1%-0.8%-0.3%
1Y44.1%39.7%19.5%

Return vs Industry: RLO exceeded the ZA Industrials industry which returned 38.7% over the past year.

Return vs Market: RLO exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is RLO's price volatile compared to industry and market?
RLO volatility
RLO Beta0.42
Industry Beta0.75
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1888n/aAlan Dicksonhttps://www.reunert.com

Reunert Limited operates in the fields of electrical engineering, information communication technologies (ICT), and applied electronics in South Africa, Australia, Lesotho, South Asia, the United States, and Zambia. The company’s Electrical Engineering segment designs, manufactures, installs, and maintains power cables; copper and optical fiber telecommunications cables and cable ducts; low-voltage electrical distribution, protection, and control equipment; copper casted rods; and overhead aluminum conductors. It serves mining, utilities, municipalities, government and state-owned entities (SOEs), and building industries.

Reunert Fundamentals Summary

How do Reunert's earnings and revenue compare to its market cap?
RLO fundamental statistics
Market CapR7.93b
Earnings (TTM)R637.00m
Revenue (TTM)R8.52b

12.4x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLO income statement (TTM)
RevenueR8.52b
Cost of RevenueR5.86b
Gross ProfitR2.66b
ExpensesR2.02b
EarningsR637.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 24, 2021

Earnings per share (EPS)3.94
Gross Margin31.25%
Net Profit Margin7.48%
Debt/Equity Ratio12.9%

How did RLO perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

1.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RLO (ZAR49.11) is trading below our estimate of fair value (ZAR49.69)

Significantly Below Fair Value: RLO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RLO is poor value based on its PE Ratio (12.4x) compared to the ZA Industrials industry average (11.2x).

PE vs Market: RLO is poor value based on its PE Ratio (12.4x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RLO's PB Ratio (1.2x) is in line with the ZA Industrials industry average.


Future Growth

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

21.7%

Forecasted Capital Goods 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 Reunert 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.


Past Performance

How has Reunert performed over the past 5 years?

-20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLO has a large one-off gain of ZAR320.0M impacting its March 31 2021 financial results.

Growing Profit Margin: RLO's current net profit margins (7.5%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: RLO's earnings have declined by 20.4% per year over the past 5 years.

Accelerating Growth: RLO's earnings growth over the past year (333.3%) exceeds its 5-year average (-20.4% per year).

Earnings vs Industry: RLO earnings growth over the past year (333.3%) exceeded the Industrials industry 35.6%.


Return on Equity

High ROE: RLO's Return on Equity (9.9%) is considered low.


Financial Health

How is Reunert's financial position?


Financial Position Analysis

Short Term Liabilities: RLO's short term assets (ZAR5.4B) exceed its short term liabilities (ZAR3.0B).

Long Term Liabilities: RLO's short term assets (ZAR5.4B) exceed its long term liabilities (ZAR360.0M).


Debt to Equity History and Analysis

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

Reducing Debt: RLO's debt to equity ratio has increased from 7% to 12.9% over the past 5 years.

Debt Coverage: RLO's debt is well covered by operating cash flow (106.7%).

Interest Coverage: RLO's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

5.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RLO's dividend (5.33%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: RLO's dividend (5.33%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

Stable Dividend: RLO's dividend payments have been volatile in the past 10 years.

Growing Dividend: RLO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.2%), RLO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.1yrs

Average management tenure


CEO

Alan Dickson (51 yo)

7yrs

Tenure

R18,040,000

Compensation

Mr. Alan Ernest Dickson, BB Sc.Eng (Elec), M.Sc (Eng), MBA, has been the Group Chief Executive Officer and Segment Head of Electrical Engineering at Reunert Ltd. since October 1, 2014 and October 2020 resp...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD1.23M) is above average for companies of similar size in the ZA market ($USD723.41K).

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


Leadership Team

Experienced Management: RLO's management team is seasoned and experienced (11.1 years average tenure).


Board Members

Experienced Board: RLO's board of directors are considered experienced (6.5 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

Reunert Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Reunert Limited
  • Ticker: RLO
  • Exchange: JSE
  • Founded: 1888
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: R7.930b
  • Shares outstanding: 161.47m
  • Website: https://www.reunert.com

Number of Employees


Location

  • Reunert Limited
  • Nashua Building
  • Woodmead North Office Park
  • Johannesburg
  • Gauteng
  • 2191
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:34
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.