Daily Stock Analysis: Rexel S.A.

By Fredrik Arnold

Wednesday, February 1, 2023 8:54 PM EDT

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Rexel SA bears the ticker symbol RXLSF, and this is my first mention of Rexel SA for this new Viking Portfolio or any of my previous seven folios.

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

Their product offering includes 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 is Europe.

It operates a network of approximately 1,900 branches in 24 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:

(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

Rexel SA price per share was $19.96 at Tuesday’s market close. In the past year, RSLSF share price fell by $2.11 or about 9.5%.

If RXLSF stock trades in the range of $12.00 to $24.00 this next year, its recent $19.96 share price might reach $21.00 by next year. That upside estimate of $1.04 is about $0.06 under the average of one year price gains recorded over the past seven years.

RXLSF Dividends

Rexel SA most recent annual variable dividend of $0.80 casts a forward annual yield of 4.01%.

RXLSF Returns

Adding the $0.80 annual estimated Rexel SA dividend to my one-year price upside estimate of $1.04 reveals a $1.84 potential gross gain estimate per share.

At Tuesday’s $19.96 closing price, a little under $1000 would buy 50 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $1.84 gross gain makes a net gain of $1.64 X 50 shares = $82.00 for an 8.2% net gain including the 4.o1% annual dividend yield.

In the next year our $1K investment in shares of Rexel SA would generate $40.10 in cash dividends. However, a single share of RXLSF stock at Tuesday’s $19.96 price is over 2 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to buy Rexel SA shares based on their dividends for 2023. The current dividend from $1K invested is 2.01 times higher than the RXLSF single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Rexel SA. Only time and money invested in this stock will determine its future market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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