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

• Market Cap: £54.35M
• Dividend Yield: N/A
• Average Volume (3M): 38.41K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.59
• 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: 33,138
• 30 Day Avg. Volume: 38,412
• 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: £92.00
• Price Target Upside: -23.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 92.00p ▼(-23.97% Downside)

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 Business Overview & Revenue Model

Company Description

R.E.A. Holdings plc engages in the cultivation of oil palms in the province of East Kalimantan in Indonesia. The company produces and sells crude palm oil and crude palm kernel oil in its agricultural land allocations comprising approximately 75,000 hectares. It is also involved in stone quarrying and coal mining activities. In addition, the company holds interests in stone deposits and two coal mining concessions located in East Kalimantan. Further, the company generates renewable energy from its two methane capture plants. R.E.A. Holdings plc was founded in 1906 and is headquartered in London, the United Kingdom.

How the Company Makes Money

R.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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.94M	176.72M	208.78M	191.91M	139.09M
Gross Profit	51.46M	33.73M	60.73M	62.15M	28.13M
EBITDA	78.80M	40.98M	66.47M	72.67M	33.22M
Net Income	26.45M	-10.24M	27.78M	7.33M	-13.60M
Balance Sheet
Total Assets	599.04M	540.39M	561.30M	591.45M	573.77M
Cash, Cash Equivalents and Short-Term Investments	38.84M	14.20M	21.91M	46.89M	11.80M
Total Debt	211.95M	198.31M	207.64M	241.38M	204.63M
Total Liabilities	304.06M	306.28M	303.77M	348.79M	327.96M
Stockholders Equity	224.46M	219.81M	233.91M	222.39M	226.79M
Cash Flow
Free Cash Flow	-7.40M	2.78M	-3.72M	19.71M	18.81M
Operating Cash Flow	31.75M	29.63M	16.70M	36.92M	33.48M
Investing Cash Flow	-40.40M	-35.35M	171.00K	-10.74M	-20.29M
Financing Cash Flow	32.12M	-1.33M	-39.09M	9.67M	-10.58M

R.E.A. Holdings plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 121 is above the 20-day moving average (MA) of 104.88, above the 50-day MA of 99.09, and above the 200-day MA of 80.62, indicating a bullish trend. The MACD of 5.28 indicates Negative momentum. The RSI at 79.54 is Negative, neither overbought nor oversold. The STOCH value of 93.53 is Negative, 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	66 Neutral	£54.35M	4.87	10.87%	―	5.39%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAM	55 Neutral	£149.77M	―	-1.36%	4.37%	-0.79%	87.50%
CARR	55 Neutral	£65.46M	―	-6.03%	3.05%	―	―
DKL	45 Neutral	£6.32M	―	-30.89%	―	-6.07%	50.59%
PACS	44 Neutral	£323.23K	―	-46.96%	―	―	―