Rexel S.A. (RXL.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Rexel S.A., together with its subsidiaries, distributes electrical products and services for the residential, commercial, and industrial energy markets worldwide.The company offers smart cameras, sensors, controllers, and monitoring software; light sources, lights, and control switches; climate control products, including heat pumps, air conditioning, and water heaters; fire alarms, surveillance equipment, access controls devices, and emergency lightings; and connection cables, and switches and routers, as well as enclosures, mounts, and racks.It also provides solar modules and inverters; connected lighting, intelligent home system, home control touch screen, and smart thermostat products; residential chargers, commercial stations, and charging cables for electric vehicles; electric motors, variable speed drives, programmable logic controllers, and computers and operator interface; and fastening systems, electrical power and control, and valves and instrumentation products.

The company offers products, services, and solutions in the fields of technical supply, automation, and energy management related to the construction, renovation, maintenance, and production.It operates a network of approximately 1,900 branches in 24 countries.The company was founded in 1967 and is headquartered in Paris, France.

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1.b. Last Insights on RXL

Rexel's recent performance was driven by accelerating same-day sales growth, fueled by North American volume and pricing. The company's Q2 sales and H1 2025 results showed a positive momentum, with sales up +1.6% on a same-day basis. Non-cable selling prices rose +0.9%, with a positive impact from US tariffs. Rexel's profitability remained resilient, thanks to self-help actions. The company confirmed its full-year guidance, despite a challenging European environment. Additionally, Rexel's share buyback program, which aims to reduce outstanding shares, has been ongoing, with several purchases made in August.

1.c. Company Highlights

Last Price	32.88
Change Percentage	0.43%
Open	32.94
Previous Close	32.74
Market Cap ( Millions)	9714
Volume	339797
Year High	33.35
Year Low	18.8
M A 50	29.85
M A 200	26.69

FCF Yield	5.78%
Dividend Yield	3.65%
ROE	4.63%
Debt / Equity	94.15%
Net Debt / EBIDTA	369.77%
Price To Book	1.9
Price Earnings Ratio	39.3
Price To FCF	17.29
Price To sales	0.5
EV / EBITDA	11.88

2. Rexel's H1 2025 Earnings: Resilient Performance Amidst Mixed Macroeconomic Backdrop

Rexel's H1 2025 sales reached EUR 9.8 billion, up 1.6% on a same-day basis, with Q2 growth accelerating to 1.8%. The company's adjusted EBITA margin remained resilient at 5.8% despite a mixed macroeconomic backdrop. The actual EPS came out at '0.87', lower than estimates at '1.02'. Free cash flow before interest and tax was EUR 251 million, representing a 42% conversion rate. Guillaume Texier mentioned that "our Axelerate 2028 program continues to drive transformation, strengthening operational efficiency."

Publication Date: Jul -30

                                    📋 Highlights
                                    H1 2025 Sales Growth:
                                                Rexel's H1 2025 sales reached EUR9.8 billion, up 1.6% on a same-day basis, with Q2 growth accelerating to 1.8%, driven by North America.
Digital Sales Penetration:
                                                Digital sales accounted for 34% of total sales in Q2, up nearly 200 basis points year-on-year.
Free Cash Flow Performance:
                                                Free cash flow before interest and tax was EUR251 million, representing a 42% conversion rate.
Adjusted EBITA Margin Resilience:
                                                Adjusted EBITA margin remained resilient at 5.8% despite a mixed macroeconomic backdrop.
Acquisition Strategy:
                                                The company completed 5 acquisitions so far this year, reinforcing its competitive position.

                                

Segmental Performance

North America saw significant acceleration, with sales up 8.7% driven by volume growth in non-residential segments like data centers. Europe remained challenging, down 3%, due to base effects and lower solar activity. The company's digital sales accounted for 34% of total sales in Q2, up nearly 200 basis points year-on-year.

Margin Analysis

The company maintained its gross margin at 25% despite competitive pressures. Adjusted EBITA margin was impacted by a negative calendar effect and operating leverage. The gross margin was stable, and cost initiatives absorbed the inflation gap.

Guidance and Outlook

Rexel confirms its full-year guidance, expecting stable to slightly positive same-day sales growth, an adjusted EBITA margin of around 6%, and a free cash flow conversion of approximately 65%, excluding the EUR 124 million fine. Analysts estimate next year's revenue growth at 2.8%.

Valuation Metrics

The company's current valuation metrics are as follows: P/E Ratio at 15.9, P/B Ratio at 1.5, P/S Ratio at 0.57, EV/EBITDA at 13.16, Dividend Yield at 4.32%, Free Cash Flow Yield at 6.89%, ROIC at 5.84%, ROE at 9.45%, and Net Debt / EBITDA at 4.19. These metrics indicate that the company is trading at a reasonable valuation, considering its growth prospects and dividend yield.

3. NewsRoom

REXEL: Disclosure of trading in own shares from November 24 to November 28, 2025

Dec -01

Source:

REXEL: Disclosure of trading in own shares from November 17 to November 21, 2025

Nov -24

Source:

Rexel (ENXTPA:RXL): Is the Market Overpricing the Electrification Leader’s Growth Narrative?

Nov -19

Source:

Rexel: Disclosure of trading in own shares from Nov. 10 to Nov. 14, 2025

Nov -17

Source:

Rexel: Disclosure of trading in own shares from Nov. 3 to Nov. 7, 2025

Nov -10

Source:

Rexel: Disclosure of trading in own shares from Oct. 27 to October 31, 2025

Nov -03

Source:

How the Narrative Around Rexel Is Evolving Amid Analyst Revisions and Market Shifts

Nov -01

Source:

Rexel: Disclosure of trading in own shares from October 20 to October 24, 2025

Oct -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.35%)

6. Segments

Warehouse

Expected Growth: 8%

Rexel S.A.'s warehouse segment growth of 8% is driven by increasing demand for energy-efficient solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization and e-commerce platforms has improved customer experience, leading to increased sales. Furthermore, Rexel's efforts to optimize its logistics and supply chain have resulted in cost savings, which have been reinvested in growth initiatives.

Direct

Expected Growth: 10%

Rexel S.A.'s 10% growth driven by increasing demand for energy-efficient solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong relationships with suppliers contribute to its growth momentum.

Rebates, Discount and Services

Expected Growth: 7%

Rexel S.A.'s 7% growth driven by strategic rebates to loyal customers, competitive discounts on bulk purchases, and value-added services such as energy-efficient solutions and technical support, enhancing customer stickiness and attracting new clients in the electrical distribution market.

7. Detailed Products

Electrical Distribution

Rexel S.A. offers a wide range of electrical distribution products, including circuit breakers, switchgear, and electrical panels, designed to ensure safe and efficient distribution of electrical power.

Lighting and Luminaires

Rexel S.A. provides a comprehensive range of lighting and luminaire products, including LED lighting, industrial lighting, and emergency lighting, designed to meet specific application requirements.

Industrial Automation and Control

Rexel S.A. offers industrial automation and control products, including programmable logic controllers (PLCs), human-machine interfaces (HMIs), and sensors, designed to optimize industrial processes and improve efficiency.

HVAC and Refrigeration

Rexel S.A. provides heating, ventilation, and air conditioning (HVAC) and refrigeration products, including air conditioning units, heating systems, and refrigeration equipment, designed to maintain comfortable indoor environments.

Security and Access Control

Rexel S.A. offers security and access control products, including CCTV cameras, intrusion detection systems, and access control systems, designed to ensure safety and security.

Data and Communication

Rexel S.A. provides data and communication products, including network infrastructure, data cabling, and communication equipment, designed to support high-speed data transmission and communication.

8. Rexel S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rexel S.A. operates in the electrical distribution industry, where substitutes are limited. However, the increasing adoption of energy-efficient solutions and renewable energy sources may pose a moderate threat to the company's business.

Bargaining Power Of Customers

Rexel S.A. has a diverse customer base, including electrical contractors, industrial companies, and retailers. While some large customers may have bargaining power, the company's broad customer base mitigates this risk.

Bargaining Power Of Suppliers

Rexel S.A. relies on a network of suppliers for its products. While the company has established relationships with its suppliers, it is still exposed to supplier concentration risks and potential price increases.

Threat Of New Entrants

The electrical distribution industry has high barriers to entry, including significant capital requirements and complex logistics. New entrants would need to invest heavily to establish a competitive presence.

Intensity Of Rivalry

The electrical distribution industry is highly competitive, with several established players competing for market share. Rexel S.A. faces intense competition from rivals, which may lead to pricing pressure and margin erosion.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.49%
Debt Cost	5.85%
Equity Weight	64.51%
Equity Cost	11.83%
WACC	9.71%
Leverage	55.02%

11. Quality Control: Rexel S.A. passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Computacenter

A-Score: 5.7/10

Value: 4.9

Growth: 6.9

Quality: 5.7

Yield: 5.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Avnet

A-Score: 5.6/10

Value: 6.9

Growth: 5.2

Quality: 3.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

A-Score: 5.5/10

Value: 7.7

Growth: 6.3

Quality: 4.7

Yield: 4.4

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Rexel

A-Score: 5.3/10

Value: 4.9

Growth: 5.2

Quality: 3.0

Yield: 7.5

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

Indra Sistemas

A-Score: 5.3/10

Value: 3.4

Growth: 6.9

Quality: 5.6

Yield: 1.9

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

ALSO Holding

A-Score: 4.6/10

Value: 5.8

Growth: 3.9

Quality: 4.8

Yield: 3.1

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

5.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.71%

Rexel S.A. - FR0010451203

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RXL

1.c. Company Highlights

Higher Yield

Cheaper

Medium Volatility

Earnings Miss

Average Growth

Revenues Beats

Average Quality

Revenues Miss

Fairly Valued

Lower Quality

Stable Momentum

Less Volatile

2. Rexel's H1 2025 Earnings: Resilient Performance Amidst Mixed Macroeconomic Backdrop

Segmental Performance

Margin Analysis

Guidance and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.35%)

6. Segments

Warehouse

Expected Growth: 8%

Direct

Expected Growth: 10%

Rebates, Discount and Services

Expected Growth: 7%

7. Detailed Products

Electrical Distribution

Lighting and Luminaires

Industrial Automation and Control

HVAC and Refrigeration

Security and Access Control

Data and Communication

8. Rexel S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Rexel S.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.88$

Current Price

32.88$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA