RHI Magnesita (RHIM) Share Price, News & Analysis

Company Overview

RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers around the world, with over 20,000 employees in 65 main production sites (including raw material sites), 12 recycling facilities and more than 70 sales offices. RHI Magnesita intends to leverage its leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefiting from more dynamic economic growth prospects. RHI Magnesita offers investors EBITDA and free cash flow comparable to FTSE 100 peers, the highest free cash flow yield in the UK industrials sector, a compelling M&A growth story and high operational gearing to market recovery. The Group seeks to allocate capital to maximise value generation for shareholders. After maintenance capex and dividend, M&A, organic investments and buybacks compete for capital. The global refractory industry remains fragmented and the M&A pipeline presents an opportunity to continue a value-accretive consolidation strategy. RHI Magnesita’s resilient margins and profitability support the use of debt financing to fund acquisitions, anchored by a leverage target of 1.0 - 2.0x EBITDA through the cycle and up to c.2.5x for compelling M&A opportunities. The Group is listed within the Equity Shares (Commercial Companies) category (“ESCC”) of the Official List of the London Stock Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit: www.rhimagnesita.com

Key Stats

• Today's Range: 2,870 to 2,985
• 50-Day Range: 2,685 to 3,115.85
• 52-Week Range: 1,932 to 3,350
• Volume: 27,797 shs
• Average Volume: 112,105 shs
• Market Capitalization: £1.39 billion
• P/E Ratio: 16.64
• Dividend Yield: 5.17%
• Price Target: GBX 3,271.67
• Consensus Rating: Moderate Buy

RHI Magnesita Stock Analysis - MarketRank™

RHI Magnesita scored higher than 27% of companies evaluated by MarketBeat. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.2 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

RHI Magnesita has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on no strong buy ratings, 2 buy ratings, 1 hold rating, and no sell ratings.

Upside Potential

RHI Magnesita has a consensus price target of GBX 3,271.67, representing about 10.5% upside from its current price of GBX 2,962.

Amount of Analyst Coverage

RHI Magnesita has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: N/A

Price to Earnings Ratio vs. the Market

The P/E ratio of RHI Magnesita is 16.73, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 39.84.

Price to Earnings Ratio vs. Sector

The P/E ratio of RHI Magnesita is 16.73, which means that it is trading at a less expensive P/E ratio than the Industrials sector average P/E ratio of about 27.99.

Price to Earnings Growth Ratio

RHI Magnesita has a PEG Ratio of 2.03. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

RHI Magnesita has a P/B Ratio of 1.02. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: N/A
• Short Interest Level: N/A

Short Interest

There is no current short interest data available for RHIM.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

RHI Magnesita is a leading dividend payer. It pays a dividend yield of 5.17%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

RHI Magnesita does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of RHI Magnesita is 101.69%. Payout ratios above 75% are not desirable because they may not be sustainable.

News and Social Media

• Score: 0.5 / 5
• News Sentiment: N/A

News Sentiment

RHI Magnesita has a news sentiment score of -1.27. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.66 average news sentiment score of Industrials companies.

Company Ownership

• Score: 0.5 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, RHI Magnesita insiders have not sold or bought any company stock.

Percentage Held by Insiders

8.11% of the stock of RHI Magnesita is held by insiders.

Percentage Held by Institutions

19.12% of the stock of RHI Magnesita is held by institutions.

Industry, Sector and Symbol

• Stock Exchange: LON
• Sector: Industrials
• Industry: Machinery
• Sub-Industry: N/A
• Current Symbol: LON:RHIM
• CIK: N/A
• Web: www.rhimagnesita.com
• Phone: 43 50 213 0
• Fax: N/A
• Employees: 15,659
• Year Founded: N/A

Price Target and Rating

• Average Price Target for RHI Magnesita: GBX 3,271.67
• High Price Target: GBX 4,200
• Low Price Target: GBX 2,765
• Potential Upside/Downside: +11.1%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): GBX 177
• Trailing P/E Ratio: 16.64
• Forward P/E Ratio: 5.98
• P/E Growth: 2.03
• Net Income: £217.75 million
• Net Margins: 3.37%
• Pretax Margin: N/A
• Return on Equity: 10.42%
• Return on Assets: 4.04%

Debt

• Debt-to-Equity Ratio: 169.57
• Current Ratio: 1.48
• Quick Ratio: 0.93

Sales & Book Value

• Annual Sales: £3.37 billion
• Price / Sales: 0.41
• Cash Flow: GBX 1,273.29 per share
• Price / Cash Flow: 2.31
• Book Value: GBX 2,897.01 per share
• Price / Book: 1.02

Miscellaneous

• Outstanding Shares: 47,337,000
• Free Float: N/A
• Market Cap: £1.39 billion
• Optionable: Not Optionable
• Beta: 1.51