RHI Magnesita NV (RHIM) AI Stock Analysis

• Market Cap: £1.57B
• Dividend Yield: 4.74%
• Average Volume (3M): 18.74K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.13
• Revenue Growth: -4.96%
• EPS Growth: -13.52%
• Country: UK
• Employees: 15,016
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial Goods
• EPS (TTM): 2.70
• Shares Outstanding: 47,197,270
• 10 Day Avg. Volume: 25,558
• 30 Day Avg. Volume: 18,741
• PEG Ratio: 0.27
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.53
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 4.40
• 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: 4,016.67p
• Price Target Upside: 20.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

RHI Magnesita NV shows a robust financial foundation with effective cash flow management and a reasonable valuation. The stock currently faces bearish technical indicators, but the recent acquisition of Resco Group could enhance long-term growth prospects. The company's high dividend yield further supports its investment appeal.

RHI Magnesita NV Business Overview & Revenue Model

Company Description

RHI Magnesita NV (RHIM) is a leading global supplier of high-grade refractory products, systems, and solutions critical for high-temperature industrial processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals, glass, and energy. Headquartered in Vienna, Austria, and registered in the Netherlands, the company operates globally, serving customers in over 180 countries with a diverse portfolio of products essential for maintaining operational efficiency and longevity in extreme conditions.

How the Company Makes Money

RHI Magnesita NV generates revenue primarily through the manufacture and sale of refractory products and solutions, which are indispensable in high-temperature industrial applications. The company's key revenue streams include the production of customized refractory materials and the provision of comprehensive services and solutions that include installation, maintenance, and recycling. Additionally, RHI Magnesita benefits from strategic partnerships and long-term contracts with major industrial players across steel, cement, and other sectors, ensuring a steady and diversified income. The company also invests in innovation and sustainability, offering advanced solutions that enhance the efficiency and environmental footprint of its clients' operations, thus adding value and fostering customer loyalty.

RHI Magnesita NV Financial Statement Overview

Summary

RHI Magnesita NV maintains a strong financial position with stable profitability and effective cash flow management. Despite a recent dip in revenue and EBIT margin, the company holds a balanced debt level and demonstrates effective equity utilization. Continued focus on operational efficiency could further enhance financial resilience.

Income Statement

RHI Magnesita NV demonstrates solid gross and net profit margins over recent years, with a notable gross profit margin of 24.32% and a net profit margin of 4.07% in the latest year. However, there is a slight decline in revenue by 2.37% from the previous year. The EBIT margin has fluctuated with the latest data showing a decline to 0%, indicating potential operational challenges. Nevertheless, the EBITDA margin remains healthy at 13.54%.

Balance Sheet

The company's balance sheet reflects a relatively stable debt-to-equity ratio of 1.51, which is manageable but indicates a moderate leverage level. The return on equity (ROE) is 11.81%, showcasing decent profitability relative to shareholder equity. The equity ratio stands at 26.27%, suggesting a balanced approach to financing through equity and liabilities.

Cash Flow

RHI Magnesita NV's cash flow generation capacity appears robust, with a free cash flow to net income ratio of 2.03 and an operating cash flow to net income ratio of 3.05, highlighting strong cash conversion. Free cash flow has been stable, with a slight decrease recently, but remains positive, indicating effective management of operating and capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.57B	3.49B	3.57B	3.32B	2.55B	2.26B
	Gross Profit
859.30M	848.00M	857.40M	763.40M	583.50M	550.10M
	EBIT
306.05M	0.00	306.80M	343.60M	360.90M	211.90M
	EBITDA
453.30M	472.00M	507.30M	477.80M	463.20M	351.60M
	Net Income Common Stockholders
185.60M	142.00M	164.60M	155.70M	243.10M	24.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
577.00M	577.00M	708.00M	495.50M	559.10M	587.20M
	Total Assets
4.58B	4.58B	4.85B	4.07B	3.91B	3.05B
	Total Debt
1.82B	1.82B	2.00B	1.67B	1.59B	1.16B
	Net Debt
1.24B	1.24B	1.31B	1.18B	1.03B	572.20M
	Total Liabilities
3.20B	3.20B	3.49B	3.03B	3.09B	2.39B
	Stockholders Equity
1.20B	1.20B	1.20B	1.00B	785.90M	646.10M
Cash Flow		Free Cash Flow
311.90M	288.00M	320.20M	77.10M	-343.90M	162.10M
	Operating Cash Flow
496.40M	433.00M	499.70M	233.80M	-91.80M	319.00M
	Investing Cash Flow
-333.90M	-154.00M	-482.00M	-199.70M	-128.90M	-137.90M
	Financing Cash Flow
-312.00M	-409.00M	178.00M	-83.90M	197.70M	-17.70M

RHI Magnesita NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3320.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RHIM, the sentiment is Negative. The current price of 3320 is below the 20-day moving average (MA) of 3623.00, below the 50-day MA of 3464.50, and below the 200-day MA of 3350.36, indicating a bearish trend. The MACD of -13.39 indicates Positive momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 9.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RHIM.

RHI Magnesita NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	$65.15B	19.20	16.00%	1.67%	1.78%	15.53%
HLMA	80 Outperform	£10.49B	36.48	15.48%	0.79%	11.94%	20.48%
FERG	74 Outperform	£33.69B	20.24	29.81%	1.83%	0.64%	-5.66%
RHIM	69 Neutral	£1.57B	13.07	11.81%	4.74%	-4.96%	-13.52%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
BLND	60 Neutral	£3.60B	19.79	-0.02%	6.33%	-30.83%	―

RHI Magnesita NV Corporate Events

RHI Magnesita Shows Resilience Amidst Challenging Market Conditions in 2024

RHI Magnesita reported its 2024 full-year results, showcasing resilience in margin and cash flow despite challenging market conditions. The company’s revenue slightly declined by 2% to €3,487 million, while adjusted EBITA remained stable at €407 million. Strategic moves included the acquisition of Resco, contributing to a total M&A deal value of €1.2 billion since December 2021, and a record recycling rate of 14.2%. Despite weak market demand, particularly in China, the company maintained strong operational efficiency and cost discipline. Looking ahead, RHI Magnesita anticipates modest growth in adjusted EBITA for 2025, supported by the Resco acquisition and ongoing network optimization efforts.

RHI Magnesita to Announce 2024 Full-Year Financial Results

RHI Magnesita has announced that it will release its full-year financial results for 2024 on February 27, 2025. This announcement underscores the company’s strategic positioning in the market, as it continues to leverage its substantial scale and global presence. The forthcoming results are anticipated to provide insights into the company’s performance and its adaptation to market trends, which could have implications for its operations and stakeholders.

RHI Magnesita Announces Share Capital and Voting Rights Update

RHI Magnesita announced that its total issued share capital, as of January 31, 2025, consists of 47,197,269 ordinary shares, with 2,280,436 of these held in treasury, resulting in 47,197,269 shares having voting rights. This information is crucial for shareholders and others with notification obligations under the FCA’s Disclosure Guidance and Transparency Rules, as it determines the denominator for calculating changes in their interest in the company.

RHI Magnesita Completes Acquisition of Resco Group, Expanding North American Reach

RHI Magnesita has completed its $410 million acquisition of Resco Group, a US-based producer of alumina monolithics and various refractories, enhancing its market presence in North America. The acquisition is expected to bolster RHI Magnesita’s product portfolio, supply security, and operational efficiency, while generating synergies through supply chain optimization and increased local production in the US and Canada. The transaction reflects the company’s strategic focus on expanding in regions with dynamic economic growth, particularly in the alumina-based refractories sector.

RHI Magnesita Updates Shareholders on Voting Rights and Capital Structure

RHI Magnesita announced that as of December 31, 2024, its issued share capital included 47,195,936 ordinary shares, with an additional 2,281,769 shares held in treasury. This update on voting rights is crucial for shareholders to determine their notification obligations under regulatory guidelines, impacting how they manage their interests in the company.