R.E.A. Holdings plc (RE) AI Stock Analysis

• Market Cap: £53.47M
• Dividend Yield: N/A
• Average Volume (3M): 24.93K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.37
• Revenue Growth: 5.39%
• EPS Growth: N/A
• Country: UK
• Employees: 8,708
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -0.12
• Shares Outstanding: 43,831,028
• 10 Day Avg. Volume: 17,320
• 30 Day Avg. Volume: 24,934
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -5.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 14.27
• Revenue Forecast (FY): £15.04B

• Rating: 69 Neutral
• Price Target: 120.00p ▼(-1.64% Downside)

The stock's overall score is driven by strong valuation metrics and positive technical indicators. Financial performance shows recovery but is tempered by cash flow and leverage concerns. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Profitability Improvement

The significant improvement in gross profit margin indicates enhanced cost management and operational efficiency, which can support long-term profitability.

Return on Equity

The improvement in return on equity reflects better profitability and efficient use of shareholder funds, enhancing investor confidence and long-term growth potential.

Operational Efficiency

The rise in EBIT margin suggests improved operational efficiency, which can lead to sustained profitability and competitive advantage in the industry.

Negative Factors

Cash Flow Challenges

The decline in free cash flow indicates potential liquidity issues, which could impact the company's ability to invest in growth opportunities and manage debt.

High Leverage

While leverage is stable, the high debt levels pose a risk to financial flexibility, potentially affecting the company's ability to weather economic downturns.

Revenue Growth Lagging

Although revenue is growing, it is trailing the industry average, which may limit market share expansion and competitive positioning in the long term.

R.E.A. Holdings plc Business Overview & Revenue Model

Company Description

R.E.A. Holdings plc (RE) is a UK-based company primarily engaged in the agricultural sector, with a focus on the cultivation and production of palm oil. The company operates plantations in Indonesia and Malaysia, leveraging their extensive land holdings to produce crude palm oil and palm kernel oil. R.E.A. Holdings is committed to sustainable agricultural practices and aims to meet the growing global demand for palm oil while minimizing environmental impact.

How the Company Makes Money

R.E.A. Holdings generates revenue primarily through the sale of crude palm oil and palm kernel oil produced from its plantations. The company benefits from a diverse range of revenue streams, including direct sales to global markets, long-term contracts with buyers, and partnerships with other agricultural enterprises. Additionally, R.E.A. Holdings capitalizes on price fluctuations in the palm oil market, which can significantly impact earnings. The company also explores value-added products derived from palm oil, which can further enhance profitability. Factors such as production efficiency, sustainable farming practices, and market demand play crucial roles in driving the company's earnings.

R.E.A. Holdings plc Financial Statement Overview

Summary

R.E.A. Holdings plc shows a recovery in profitability with improved profit margins and return on equity. However, concerns about cash flow management and high leverage remain, posing potential risks.

Income Statement

The income statement shows a mixed performance. The gross profit margin improved significantly from 19.08% in 2023 to 27.38% in 2024, indicating better cost management. Net profit margin shifted from a negative -5.79% in 2023 to a positive 14.07% in 2024, demonstrating a strong recovery. Revenue growth was 6.35% in the latest period, which is a positive trend, but still below the industry average. EBIT and EBITDA margins have improved, with EBIT margin increasing from 8.40% in 2023 to 18.61% in 2024, and EBITDA margin rising from 23.19% to 41.92%, suggesting enhanced operational efficiency. However, the volatile net income history and previous losses are areas of concern.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio is 0.94 in 2024, which is relatively stable compared to 0.95 in 2023, indicating steady leverage levels. Return on equity has improved from -4.66% in 2023 to 11.78% in 2024, reflecting better profitability. The equity ratio is 37.47% in 2024, slightly up from 36.84% in 2023, indicating a stable equity base. Despite these positive signs, the high total debt remains a potential risk factor.

Cash Flow

The cash flow statement highlights some challenges. Free cash flow has declined from 2.77 million in 2023 to -7.4 million in 2024, which raises concerns about cash generation. However, the operating cash flow to net income ratio improved to 1.20 in 2024 from a negative ratio in 2023, indicating better conversion of earnings into cash. The free cash flow to net income ratio is negative, highlighting issues in cash retention. These mixed signals point to potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.26M	187.94M	176.72M	208.78M	191.91M	139.09M
Gross Profit	56.93M	51.46M	33.73M	60.73M	62.15M	28.13M
EBITDA	66.44M	78.80M	40.98M	66.47M	72.67M	33.22M
Net Income	23.05M	26.45M	-10.24M	27.78M	7.33M	-13.60M
Balance Sheet
Total Assets	606.98M	599.04M	540.39M	561.30M	591.45M	573.77M
Cash, Cash Equivalents and Short-Term Investments	55.21M	38.84M	14.20M	21.91M	46.89M	11.80M
Total Debt	234.05M	213.82M	198.31M	205.57M	241.38M	204.63M
Total Liabilities	318.52M	304.06M	306.28M	303.77M	348.79M	327.96M
Stockholders Equity	218.10M	224.46M	219.81M	233.91M	222.39M	226.79M
Cash Flow
Free Cash Flow	-294.53K	-7.40M	2.78M	-3.72M	19.71M	18.81M
Operating Cash Flow	41.45M	31.75M	29.63M	16.70M	36.92M	33.48M
Investing Cash Flow	-44.04M	-40.40M	-35.35M	171.00K	-10.74M	-20.29M
Financing Cash Flow	38.76M	32.12M	-1.33M	-39.09M	9.67M	-10.58M

R.E.A. Holdings plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RE, the sentiment is Positive. The current price of 122 is above the 20-day moving average (MA) of 115.13, above the 50-day MA of 113.13, and above the 200-day MA of 90.88, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RE.

R.E.A. Holdings plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RE	69 Neutral	£53.47M	4.81	10.87%	―	5.39%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DKL	50 Neutral	£6.01M	-1.19	-30.89%	―	-6.07%	50.59%
CAM	45 Neutral	£124.62M	-54.16	―	5.23%	-0.79%	87.50%
PACS	44 Neutral	£323.23K	-0.13	―	―	―	―