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R.E.A. Holdings plc (GB:RE)
LSE:RE
UK Market
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R.E.A. Holdings plc (RE) AI Stock Analysis

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GB:RE

R.E.A. Holdings plc

(LSE:RE)

Rating:66Neutral
Price Target:
92.00p
▲(3.95%Upside)
R.E.A. Holdings plc benefits from improved financial performance and a strong technical position. The undervaluation adds appeal, though cash flow issues and high leverage pose risks. Overbought technical indicators suggest caution.

R.E.A. Holdings plc (RE) vs. iShares MSCI United Kingdom ETF (EWC)

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

Company DescriptionR.E.A. Holdings plc (RE) is a UK-based company primarily engaged in the cultivation of oil palms and production of crude palm oil (CPO) and crude palm kernel oil (CPKO) in Indonesia. The company operates through its subsidiaries, focusing on sustainable agricultural practices and maintaining a significant presence in the palm oil industry. Its core products include CPO, CPKO, and palm kernel expeller (PKE), serving both domestic and international markets.
How the Company Makes MoneyR.E.A. Holdings plc generates revenue primarily through the sale of crude palm oil and related products such as crude palm kernel oil and palm kernel expeller. The company owns and operates palm oil plantations, which allow it to produce these commodities at scale. The harvested palm fruit is processed in their mills to extract the oil, which is then sold to refineries and other buyers in both local and international markets. Key revenue streams include direct sales of palm oil products and potential income from by-products. The company leverages strategic partnerships to enhance distribution channels and may engage in long-term contracts with buyers to ensure consistent sales. Additionally, sustainability certifications and adherence to environmental standards help in accessing premium markets and securing better pricing for their products.

R.E.A. Holdings plc Financial Statement Overview

Summary
R.E.A. Holdings plc shows improved profitability with better cost management, evidenced by increased profit margins and return on equity. However, cash flow challenges and high leverage remain concerns. Revenue growth is positive but trails the industry average.
Income Statement
60
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue187.94M176.72M208.78M191.91M139.09M
Gross Profit51.46M33.73M60.73M62.15M28.13M
EBITDA78.80M40.98M86.49M74.89M23.97M
Net Income26.45M-10.24M27.78M7.33M-13.60M
Balance Sheet
Total Assets599.04M540.39M561.30M591.45M573.77M
Cash, Cash Equivalents and Short-Term Investments38.84M14.20M21.91M46.89M11.80M
Total Debt211.95M209.14M207.64M241.38M204.63M
Total Liabilities304.06M306.28M303.77M348.79M327.96M
Stockholders Equity224.46M219.81M233.91M222.39M226.79M
Cash Flow
Free Cash Flow-7.40M2.78M-3.72M19.71M18.81M
Operating Cash Flow31.75M29.63M16.70M36.92M33.48M
Investing Cash Flow-40.40M-35.35M171.00K-10.74M-20.29M
Financing Cash Flow32.12M-1.33M-39.09M9.67M-10.58M

R.E.A. Holdings plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price88.50
Price Trends
50DMA
83.22
Positive
100DMA
76.04
Positive
200DMA
75.97
Positive
Market Momentum
MACD
2.16
Positive
RSI
57.97
Neutral
STOCH
51.02
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 88.5 is above the 20-day moving average (MA) of 87.25, above the 50-day MA of 83.22, and above the 200-day MA of 75.97, indicating a bullish trend. The MACD of 2.16 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 51.02 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£38.79M2.7511.67%3.46%
66
Neutral
£7.63B6.745.70%3.68%1.19%16.13%
60
Neutral
£77.46M-6.03%2.70%
55
Neutral
£144.08M-1.36%4.56%-3.71%-32.13%
51
Neutral
£6.32M-37.67%-23.72%23.19%
44
Neutral
£358.07K-46.96%10.90%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RE
R.E.A. Holdings plc
90.00
9.25
11.46%
GB:PACS
Agriterra
0.50
-0.38
-43.18%
GB:DKL
Dekel Agri-Vision
0.52
-0.56
-51.85%
GB:CARR
Carr's Group plc
150.00
18.22
13.83%
GB:CAM
Camellia
5,650.00
1,470.16
35.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2025