Rexel SA (RXL) AI Stock Analysis

• Market Cap: €7.69B
• Dividend Yield: 4.62%
• Average Volume (3M): 615.89K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.49
• Revenue Growth: 2.16%
• EPS Growth: -64.02%
• Country: FR
• Employees: 26,706
• Sector: Services
• Sector Strength: N/A
• Industry: Technology Distributors
• EPS (TTM): 0.87
• Shares Outstanding: 299,036,620
• 10 Day Avg. Volume: 749,373
• 30 Day Avg. Volume: 615,889
• PEG Ratio: -3.12
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.02
• 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: €28.64
• Price Target Upside: 10.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: €30.00 ▲(15.61%Upside)

Rexel SA's stock is supported by strong technical indicators and a solid financial performance, despite recent declines in profitability and free cash flow. The stock's high P/E ratio suggests potential overvaluation, but the attractive dividend yield may appeal to some investors. Monitoring of increasing liabilities and overbought technical signals is recommended.

Rexel SA Business Overview & Revenue Model

Company Description

Rexel SA (RXL) is a leading global distributor of electrical products and services. The company operates within sectors such as construction, industrial, and residential markets, offering a wide range of products including electrical supplies, lighting, automation, and energy management solutions. With a strong presence across Europe, North America, and Asia-Pacific, Rexel serves a diverse customer base, ranging from contractors to large corporations, enabling them to improve energy efficiency and optimize their electrical systems.

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, lighting fixtures, automation products, and energy management solutions to various sectors such as construction, industrial, and residential markets. Rexel's earnings are significantly influenced by its extensive distribution network, strategic partnerships with leading manufacturers, and its ability to offer value-added services such as technical support, logistics, and energy efficiency consulting. Additionally, the company benefits from economies of scale due to its global footprint, which enhances its purchasing power and operational efficiency.

Rexel SA Financial Statement Overview

Summary

Rexel SA exhibits strong financial performance overall, with consistent revenue growth and operational efficiency. The balance sheet is solid with controlled leverage, although the company should monitor increasing liabilities. Cash flow management is commendable, but recent declines in profitability and free cash flow warrant attention to maintain financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.29B	19.15B	18.70B	14.69B	12.59B
Gross Profit	4.80B	4.51B	4.87B	3.87B	3.10B
EBITDA	1.32B	1.60B	1.70B	1.19B	796.70M
Net Income	339.10M	774.70M	922.30M	597.20M	-261.30M
Balance Sheet
Total Assets	14.41B	13.65B	12.91B	11.55B	9.96B
Cash, Cash Equivalents and Short-Term Investments	883.30M	912.70M	895.40M	573.50M	685.40M
Total Debt	4.73B	4.18B	3.55B	3.30B	3.04B
Total Liabilities	8.84B	8.12B	7.63B	6.99B	6.17B
Stockholders Equity	5.56B	5.53B	5.28B	4.56B	3.80B
Cash Flow
Free Cash Flow	744.80M	783.90M	708.70M	608.30M	597.30M
Operating Cash Flow	876.90M	942.10M	840.10M	717.60M	706.90M
Investing Cash Flow	-565.40M	-709.30M	-182.10M	-542.30M	67.60M
Financing Cash Flow	-363.60M	-200.80M	-286.60M	-299.70M	-580.20M

Rexel SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RXL, the sentiment is Neutral. The current price of 25.95 is below the 20-day moving average (MA) of 26.37, above the 50-day MA of 25.72, and above the 200-day MA of 24.43, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 39.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:RXL.

Rexel SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	79 Outperform	$5.73B	15.37	10.25%	1.86%	4.83%	52.47%
MRN	76 Outperform	€587.21M	9.93	7.20%	3.66%	2.70%	-30.94%
RXL	75 Outperform	€7.69B	30.97	4.63%	4.62%	2.16%	-64.02%
Sector *	67 Neutral	€4.00B	17.07	-1.10%	4.41%	3.06%	-13.50%
SPIE	66 Neutral	€8.66B	31.59	10.66%	1.94%	10.87%	-10.35%
SAMS	66 Neutral	€515.19M	19.49		5.35%	2.26%	-65.60%