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RCL Foods Limited (RCL) Fair Value & Analysis

Consumer Defensive · ZA · Market cap 7.5B ZAC

RF RCL Foods Limited RCL · JSE
PriceR7.85
Fair ValueR32.89
Upside+319.0%
Quality94/100
Evidence: Low Range R20.25 – R41.39

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 3 days ago

Share price −3.6% over the past month.

Price vs Fair Value (12 months)

R11.29 R7.76 Fair Value R32.89 Jun 2025 Jun 2026

12‑month range R7.76 – R11.29 · fair‑value band R20.25 – R41.39 · the R7.85 price screens below the R32.89 fair value. As of Jun 26, 2026.

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Analysis

RCL Foods Limited (RCL) currently trades at R7.85, while our model-based Fair Value estimate is R32.89 — implying the stock looks roughly 319.0% undervalued today. We read business quality at 94/100 (high quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low) — always confirm before acting.

Over the trailing twelve months, RCL Foods Limited generated revenue of 26.2B ZAR at a net margin of 4.1%. Revenue declined 1.9% year over year. It earns a return on equity of 10.7%. Net debt stands at 452M ZAR. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 26.2B ZAC
Revenue growth (YoY) -1.9%
Net margin 4.1%
Return on equity 10.7%
Free cash flow 1.3B ZAC FY2025
P/E ratio 6.9
More key figures
Operating margin 6.2%
EPS (TTM) R1.21
Dividend yield 0.1%
EPS growth (YoY) -43.7%
Net debt 452M ZAC FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

RCL Foods Limited operates as a food manufacturer in South Africa. The company operates through the Groceries, Baking, and Sugar segments. It is involved in culinary products, including mayonnaise, peanut butter, and rusks; milling, specialty, and bakery products; breads, buns, rolls, and pies; as well as pet food products and beverages, and sugar and molasses-based feed operations. The company sells its products primarily under the Ouma, Nola, Yum Yum, Nutso, Bobtail, Catmor, Dogmor, Ultra Dog, Canine Cuisine, Optimizer, Feline Cuisine, Mageu Number 1, Monati, Mnandi, Supreme, Tafelberg, Safari, A1, 5 Star, Sunbake, Piemans, Sunshine, and Selati brands. In addition, it engages in treasury, international investments, farming, marketing, and food innovation and research activities. The company was formerly known as Rainbow Chicken Limited and changed its name to RCL Foods Limited in August 2013. RCL Foods Limited was founded in 1960 and is based in Durban, South Africa.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RCL Foods Limited reported revenue of R26.5B in FY2025 versus R31.7B in FY2021, a compound −4.4%/yr. Reported net income was R1.4B in FY2025, compounding +9.3%/yr from FY2021.

Revenue −4.4%/yr
FY21 R31.7B
FY22 R34.9B
FY23 R37.8B
FY24 R26.0B
FY25 R26.5B
Net income +9.3%/yr
FY21 R993M
FY22 R1.0B
FY23 R616M
FY24 R1.6B
FY25 R1.4B

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Similar stocks

6 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Jun 26, 2026).

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Nestlé S.A NSRGF $97.58 $65.41 -33%
Foshan Haitian Flavouring and Food Company 603288 ¥35.10 ¥25.34 -28%
Nestlé India Limited NESTLEIND ₹1,438 ₹362.37 -75%
Grupo Bimbo, S.A. BIMBOA 57.10 MXN 72.19 MXN +26%
Uni-President Enterprises Corp 1216 75.10 TWD 72.54 TWD -3%
Britannia Industries Limited BRITANNIA ₹5,218 ₹3,567 -32%

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Frequently asked questions

Is RCL Foods Limited (RCL) undervalued?
As of Jun 26, 2026, our model estimates a fair value of R32.89 versus a price of R7.85 — about +319% (undervalued). Model-based estimate, not financial advice.
What is the fair value of RCL?
Our 21-model fair value for RCL Foods Limited is R32.89 (as of Jun 26, 2026), built from audited fundamentals. The current price is R7.85.
What is the quality score of RCL?
RCL Foods Limited has a Quality Score of 94/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of RCL Foods Limited (RCL)?
RCL Foods Limited reported trailing-twelve-month revenue of about 26.2B ZAR (latest available figure, as of Jun 26, 2026).
What is the net profit margin of RCL?
The net profit margin of RCL Foods Limited is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does RCL Foods Limited pay a dividend?
RCL Foods Limited currently shows a dividend yield of about 0.07% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.