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RCL

RCL FoodsJSE:RCL Stock Report

Market Cap

R11.3b

7D

6.1%

1Y

75.7%

Updated

19 Oct, 2021

Data

Company Financials +
RCL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends3/6

RCL Overview

RCL Foods Limited, through its subsidiaries, engages in the food business in South Africa and other African countries.

RCL Foods Competitors

Tongaat Hulett

JSE:TON

R918.8m

Imperial Logistics

JSE:IPL

R12.0b

Price History & Performance

Summary of all time highs, changes and price drops for RCL Foods
Historical stock prices
Current Share PriceR12.74
52 Week HighR6.58
52 Week LowR13.01
Beta0.48
1 Month Change12.74%
3 Month Change34.11%
1 Year Change75.72%
3 Year Change-18.59%
5 Year Change-2.00%
Change since IPO-42.09%

Recent News & Updates

Oct 05
Estimating The Intrinsic Value Of RCL Foods Limited (JSE:RCL)

Estimating The Intrinsic Value Of RCL Foods Limited (JSE:RCL)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of RCL Foods Limited...

Sep 13
Investors Shouldn't Be Too Comfortable With RCL Foods' (JSE:RCL) Robust Earnings

Investors Shouldn't Be Too Comfortable With RCL Foods' (JSE:RCL) Robust Earnings

Despite posting some strong earnings, the market for RCL Foods Limited's ( JSE:RCL ) stock hasn't moved much. Our...

Sep 08
RCL Foods (JSE:RCL) Has A Pretty Healthy Balance Sheet

RCL Foods (JSE:RCL) Has A Pretty Healthy Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

RCLZA FoodZA Market
7D6.1%0.8%1.0%
1Y75.7%4.0%20.8%

Return vs Industry: RCL exceeded the ZA Food industry which returned 6% over the past year.

Return vs Market: RCL exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is RCL's price volatile compared to industry and market?
RCL volatility
RCL Beta0.48
Industry Beta0.32
Market Beta1

Stable Share Price: RCL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RCL's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196021,046Miles Dallyhttps://www.rclfoods.com

RCL Foods Limited, through its subsidiaries, engages in the food business in South Africa and other African countries. The company operates through Food and Logistics divisions. It provides grocery products, pies, beverages, flour, milling products and specialty baking products, bakeries products, buns and rolls, chicken products, sugar, pet food products, and molasses-based feed products, as well as mayonnaise, peanut butter, rusks, etc. The company sells its products primarily under the Ouma, Nola, Yum Yum, Nutso, Bobtail, Catmor, Dogmor, Ultra dog, Canine Cuisine, Optimizer, Feline Cusine, Mageu Number 1, Monati, Mnandi, Piemans, Supreme, Tafelberg, Safari, A1, 5 Star, Sunbake, Epol, Driehoek and Equus, and Selati brand names.

RCL Foods Fundamentals Summary

How do RCL Foods's earnings and revenue compare to its market cap?
RCL fundamental statistics
Market CapR11.32b
Earnings (TTM)R992.91m
Revenue (TTM)R31.69b

11.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCL income statement (TTM)
RevenueR31.69b
Cost of RevenueR23.43b
Gross ProfitR8.26b
ExpensesR7.26b
EarningsR992.91m

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.12
Gross Margin26.06%
Net Profit Margin3.13%
Debt/Equity Ratio28.1%

How did RCL perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

40%

Payout Ratio

Does RCL pay a reliable dividends?

See RCL dividend history and benchmarks
When do you need to buy RCL by to receive an upcoming dividend?
RCL Foods dividend dates
Ex Dividend DateOct 27 2021
Dividend Pay DateNov 02 2021
Days until Ex dividend6 days
Days until Dividend pay date12 days

Does RCL pay a reliable dividends?

See RCL dividend history and benchmarks

Valuation

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

9.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCL (ZAR12.74) is trading below our estimate of fair value (ZAR14.05)

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


Price To Earnings Ratio

PE vs Industry: RCL is poor value based on its PE Ratio (11.4x) compared to the ZA Food industry average (11.2x).

PE vs Market: RCL's PE Ratio (11.4x) is in line with the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: RCL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: RCL is good value based on its PB Ratio (1.1x) compared to the ZA Food industry average (1.2x).


Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCL's forecast earnings growth (13.9% per year) is above the savings rate (8.8%).

Earnings vs Market: RCL's earnings (13.9% per year) are forecast to grow faster than the ZA market (12.3% per year).

High Growth Earnings: RCL's earnings are forecast to grow, but not significantly.

Revenue vs Market: RCL's revenue (5.2% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: RCL's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RCL's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has RCL Foods performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCL has high quality earnings.

Growing Profit Margin: RCL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RCL's earnings have declined by 27.2% per year over the past 5 years.

Accelerating Growth: RCL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RCL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (0.6%).


Return on Equity

High ROE: RCL's Return on Equity (9.3%) is considered low.


Financial Health

How is RCL Foods's financial position?


Financial Position Analysis

Short Term Liabilities: RCL's short term assets (ZAR10.6B) exceed its short term liabilities (ZAR7.0B).

Long Term Liabilities: RCL's short term assets (ZAR10.6B) exceed its long term liabilities (ZAR4.7B).


Debt to Equity History and Analysis

Debt Level: RCL's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: RCL's debt to equity ratio has reduced from 39% to 28.1% over the past 5 years.

Debt Coverage: RCL's debt is well covered by operating cash flow (39%).

Interest Coverage: RCL's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

What is RCL Foods's current dividend yield, its reliability and sustainability?

3.53%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 20 2021Ex Dividend DateOct 27 2021Dividend Pay DateNov 02 20216 days from Ex DividendBuy in the next 6 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RCL's dividend (3.53%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: RCL's dividend (3.53%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.3%), RCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RCL's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Miles Dally (64 yo)

no data

Tenure

R11,048,000

Compensation

Mr. Miles Dally, B. Comm, serves as the Chief Executive Officer and Managing Director of RCL Foods Limited and serves as its Executive Director since February 1, 2003. Mr. Dally serves as the Managing Dire...


CEO Compensation Analysis

Compensation vs Market: Miles's total compensation ($USD760.45K) is about average for companies of similar size in the ZA market ($USD891.99K).

Compensation vs Earnings: Miles's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RCL's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: RCL's board of directors are seasoned and experienced ( 10.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RCL Foods Limited's employee growth, exchange listings and data sources


Key Information

  • Name: RCL Foods Limited
  • Ticker: RCL
  • Exchange: JSE
  • Founded: 1960
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R11.316b
  • Shares outstanding: 888.25m
  • Website: https://www.rclfoods.com

Number of Employees


Location

  • RCL Foods Limited
  • Ten The Boulevard
  • Westway Office Park
  • Durban
  • KwaZulu-Natal
  • 3629
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:38
End of Day Share Price2021/10/19 00:00
Earnings2021/07/04
Annual Earnings2021/07/04


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.