Ratings RCL Foods Limited

Equities

RCL

ZAE000179438

End-of-day quote Johannesburg S.E. Other stock markets 18:00:00 2024-04-25 EDT			5-day change	1st Jan Change
9.6 ^ZAR	-4.00%		-1.34%	+12.81%

03-04	South Africa's RCL Foods to unbundle and list Rainbow Chicken business	RE
03-04	RCL Foods Limited Reports Earnings Results for the Half Year Ended December 31, 2023	CI

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

The company's profit outlook over the next few years is a strong asset.
Its low valuation, with P/E ratio at 6.96 and 6.66 for the ongoing fiscal year and 2025 respectively, makes the stock pretty attractive with regard to earnings multiples.
The company shows low valuation levels, with an enterprise value at 0.29 times its sales.
The company's share price in relation to its net book value makes it look relatively cheap.
Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For several months, analysts have been revising their EPS estimates roughly upwards.

Weaknesses

As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
The company sustains low margins.
Most analysts recommend that the stock should be sold or reduced.
The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
The average consensus view of analysts covering the stock has deteriorated over the past four months.
Over the past twelve months, analysts' consensus has been significantly revised downwards.
The company's earnings releases usually do not meet expectations.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Food Processing

	1st Jan change	Capi.	ESG Refinitiv
RCL FOODS LIMITED	+12.81%	454M	C
NESTLÉ S.A.	-4.93%	261B	A-
MONDELEZ INTERNATIONAL, INC.	-2.51%	94.98B	C+
KRAFT HEINZ	+3.19%	46.39B	C+
GENERAL MILLS, INC.	+8.74%	39.99B	B-
DANONE	-0.65%	39.95B	B-
THE HERSHEY COMPANY	-0.15%	38.02B	B-
ARCHER-DANIELS-MIDLAND COMPANY	-16.78%	30.16B	B-
NESTLÉ INDIA LIMITED	-6.61%	28.72B	A
ASSOCIATED BRITISH FOODS PLC	+11.32%	24.54B	A-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes