Rexel SA (RXLSF) is a provider of electrical products and services to residential, nonresidential, and industrial markets.

Their product offerings include electrical equipment such as appliances and accessories, cables and routing, lighting, security and communication, home automation, climate control, and building management systems used in the construction, renovation, and maintenance of buildings and infrastructures.

Clients include small and midsize installers, large installers and facility managers, commercial companies, and industrial customers. Rexel's largest end market in Europe.

Rexel operates a network of approximately 1,900 branches in 21 countries. The company was founded in 1967 and is headquartered in Paris, France.

Three key data points gauge Rexel SA or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

RXLSF Price

Over the past year, Rexel’s share price grew about 41% from $16.57 to $23.36 as of Wednesday’s  market close.

If Rexel’s stock trades in the range of $6.00 to $30.00 this next year, its recent $23.36 share price might rise to $25.00 by next year. Of course, Rexel’s price could drop about the same $1.64 amount, or more.

My upside estimate of $1.64, however, is just under the $1.74 average annual gains over the past eight years.

RXLSF Dividend

Rexel’s most recent variable dividends have been paid annually. It’s most recent dividend, paid May 11, was $2.64.   Rexel’s  Annual dividend has varied between $0.00 and that $2.64 amount in the past eight years. The average of those eight payouts is $0.84 which I used as my guess for the next likely annual dividend

RXLSF Returns

Adding the $0.84 anticipated annual dividend to RXLSF’s estimated $1.64 price upside, reveals a $2.48 potential gross gain per share for the coming year.

At Tuesday’s $23.36 closing price, a little over $1000 would buy 43 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.23 per share.

Subtracting that maybe $0.23 brokerage cost from my estimated $2.48 gross gain per share makes a net gain amounting to $2.25 X 43 shares = $96.75 for about a 9.5% net gain.

This may be the time to pounce on Rexel SA shares. But beware, YCharts Rates RXLSF as a stock to avoid. Rexel missed its 2020 dividend payout. However the $36 dividend from $1000 invested comes in at 54% over the single share price. The choice is yours.

The foregoing article is based on past history of Rexel SA. The only accurate measure of future performance is from active investment in the company.

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