Rexel SA (RXL) AI Stock Analysis

• Market Cap: €7.52B
• Dividend Yield: 4.73%
• Average Volume (3M): 559.95K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.42
• Revenue Growth: 0.69%
• EPS Growth: -56.21%
• Country: FR
• Employees: 26,706
• Sector: Industrials
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): -0.05
• Shares Outstanding: 299,036,620
• 10 Day Avg. Volume: 580,463
• 30 Day Avg. Volume: 559,953
• PEG Ratio: 0.11
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €28.00
• Price Target Upside: 10.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: ―

Rexel SA shows strong financial fundamentals, which are its key strength, although recent profitability and cash flow declines need attention. The technical analysis reveals mixed signals, with a slight bearish tone due to trading below key moving averages. Valuation appears somewhat stretched given the high P/E ratio, but the attractive dividend yield provides a buffer. Overall, the stock is rated moderately positive, with solid financials but some caution due to technical and valuation concerns.

Rexel SA Business Overview & Revenue Model

Company Description

Rexel S.A., together with its subsidiaries, distributes electrical products and services for the residential, commercial, and industrial energy markets worldwide. The company offers smart cameras, sensors, controllers, and monitoring software; light sources, lights, and control switches; climate control products, including heat pumps, air conditioning, and water heaters; fire alarms, surveillance equipment, access controls devices, and emergency lightings; and connection cables, and switches and routers, as well as enclosures, mounts, and racks. It also provides solar modules and inverters; connected lighting, intelligent home system, home control touch screen, and smart thermostat products; residential chargers, commercial stations, and charging cables for electric vehicles; electric motors, variable speed drives, programmable logic controllers, and computers and operator interface; and fastening systems, electrical power and control, and valves and instrumentation products. The company offers products, services, and solutions in the fields of technical supply, automation, and energy management related to the construction, renovation, maintenance, and production. It operates a network of approximately 1,900 branches in 24 countries. The company was founded in 1967 and is headquartered in Paris, France.

How the Company Makes Money

Rexel SA generates revenue primarily through the distribution and sale of electrical products and solutions. The company's key revenue streams include the sale of electrical supplies such as wiring, cables, lighting, and automation products to professionals and businesses in the construction, industrial, and commercial sectors. Rexel also offers value-added services such as inventory management, technical support, and energy management solutions, which enhance customer loyalty and increase sales. Strategic partnerships with leading manufacturers and a broad distribution network further bolster Rexel's market position and revenue generation. The company's focus on sustainability and digital transformation initiatives also contribute to its earnings by meeting the evolving needs of its customers and expanding its service offerings.

Rexel SA Financial Statement Overview

Summary

Rexel SA exhibits strong financial performance with consistent revenue growth and operational efficiency. The balance sheet is solid with controlled leverage, though increasing liabilities need monitoring. Cash flow management is robust, but recent declines in profitability and free cash flow warrant attention.

Income Statement

Rexel SA has demonstrated consistent revenue growth over the past few years, with a notable increase from 2019 to 2024. The gross profit margin is healthy, and while the net profit margin has been positive, it saw a decline in the most recent year due to lower net income. The EBIT and EBITDA margins have been stable, indicating strong operational performance. The company shows resilience with steady growth, although recent profitability dip needs attention.

Balance Sheet

The balance sheet reflects a solid equity base and manageable debt levels. The debt-to-equity ratio is stable, suggesting controlled leverage. Return on equity shows a declining trend due to reduced net income but remains positive. The equity ratio indicates a strong capital structure with a healthy proportion of equity to assets, although attention to increasing liabilities is needed.

Cash Flow

Rexel SA maintains robust cash flow operations, with consistent free cash flow generation. However, the free cash flow growth rate has been negative recently due to lower free cash flow. The operating cash flow to net income ratio has been strong, indicating effective cash management. The company needs to address the recent decline in free cash flow to sustain long-term financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.02B	19.29B	19.15B	18.70B	14.69B	12.59B
	Gross Profit
4.77B	4.80B	4.51B	4.87B	3.87B	3.10B
	EBIT
1.15B	845.90M	1.26B	1.34B	911.80M	68.80M
	EBITDA
1.21B	1.32B	1.60B	1.70B	1.19B	796.70M
	Net Income Common Stockholders
698.20M	339.10M	774.70M	922.30M	597.20M	-261.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
416.90M	883.30M	912.70M	895.40M	573.50M	685.40M
	Total Assets
14.11B	14.41B	13.65B	12.91B	11.55B	9.96B
	Total Debt
4.41B	4.73B	4.18B	3.55B	3.30B	3.04B
	Net Debt
3.99B	3.84B	3.27B	2.66B	2.72B	2.35B
	Total Liabilities
8.54B	8.84B	8.12B	7.63B	6.99B	6.17B
	Stockholders Equity
5.57B	5.56B	5.53B	5.28B	4.56B	3.80B
Cash Flow		Free Cash Flow
897.70M	744.80M	783.90M	708.70M	608.30M	597.30M
	Operating Cash Flow
1.04B	876.90M	942.10M	840.10M	717.60M	706.90M
	Investing Cash Flow
-962.10M	-565.40M	-709.30M	-182.10M	-542.30M	67.60M
	Financing Cash Flow
-428.60M	-363.60M	-200.80M	-286.60M	-299.70M	-580.20M

Rexel SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RXL, the sentiment is Positive. The current price of 25.32 is above the 20-day moving average (MA) of 25.00, above the 50-day MA of 23.40, and above the 200-day MA of 23.99, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:RXL.

Rexel SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RXL	73 Outperform	€7.52B	22.47	6.11%	4.73%	0.69%	-56.21%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
ELSSF		$6.44B	15.60	9.66%	2.03%	―	―
0QAG		€2.72B	50.45	10.24%	―	―	―
0Q6Q		€501.93M	8.49	7.20%	6.07%	―	―
0R8M		€7.39B	26.95	13.56%	2.27%	―	―
SAMS	66 Neutral	€549.65M	20.79		6.27%	2.26%	-65.60%