RCL Foods Limited (RCLFF) fair value: what the stock is really worth
As of Sep 18, 2026: fair value of RCL Foods Limited $1.71, price $0.57, upside +199.3%, quality 68 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $0.2337 – $0.5713 · fair‑value band $1.14 – $2.38 · the $0.5713 price screens below the $1.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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RCL Foods Limited operates as a food manufacturer in South Africa. The company operates through the Groceries, Baking, and Sugar segments.
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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.
Stock analysis
RCL Foods Limited (RCLFF) currently trades at $0.5713, while our model-based Fair Value estimate is $1.71, implying the stock looks roughly 66.6% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $1.82 per share, and 23 of the 24 models we run sit above the $0.5713 price.
Bear case: the Asset-Based group reads lowest at $0.4717, and 1 of the 24 models stay below the price. Evidence for this calculation is low.
Scenario range: $1.14 (bear) to $2.38 (bull), the price of $0.5713 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Consumer Defensive sector.
Mixed Growth: Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
RCL Foods Limited reported revenue of 26.5B ZAR in FY2025 versus 31.7B ZAR in FY2021, a compound −4.4%/yr. Reported net income was 1.4B ZAR in FY2025, compounding +9.3%/yr from FY2021.
Key figures
Market cap $514M · P/E ratio 6.3 · P/S ratio 0.34 · EPS (TTM) $0.0900 · Net margin 5.4% · Return on equity 10.7% · Return on assets (EBIT) 6.3% · Operating margin 6.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (low confidence).
What moves the price
The share trades at its 52-week high and 76% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −2% fair-value upside, at 199%, RCLFF screens cheaper than that median.
Fair Value models
Bear $1.14Fair Value $1.71Bull $2.38
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
What shareholders gained per year (last 5 years), in ZAR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.1%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7% vs 10%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 7%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−11.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in ZAR, South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about −14.1% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Packaged Foods · 667 stocks
Beats the industry median on 12/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+199% · Top 25%
Profitability
Return on equity (TTM)11% · Above median
Return on assets5% · Above median
Net margin (TTM)4% · Above median
Operating margin (TTM)6% · Above median
Growth and dividend
Revenue growth−2% · Below median
Dividend yield (TTM)96.3% · Top 25%
Balance sheet
Debt / equity0.15× · Above median
Valuation Multiplesvs Packaged Foods median · lower = cheaper
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Is RCL Foods Limited (RCLFF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $1.71 versus a price of $0.5713, about +199% upside (undervalued).
What is the fair value of RCLFF?
Our model-based fair value for RCL Foods Limited is $1.71 (as of Sep 24, 2026), built from audited fundamentals. The current price: $0.5713.
What is the quality score of RCLFF?
RCL Foods Limited has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RCL Foods Limited (RCLFF)?
Our model-based price target is the fair value of $1.71 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $1.14, optimistic scenario $2.38. It is a calculation from audited fundamentals, not an analyst target.
What is the RCL Foods Limited stock forecast for 2026?
Our models put fair value at $1.71, about +199% upside versus a price of $0.5713 (undervalued). Cautious scenario $1.14, optimistic scenario $2.38. The calculation is refreshed regularly with new filings.
What is the revenue of RCL Foods Limited (RCLFF)?
RCL Foods Limited reported trailing-twelve-month revenue of about 26.2B ZAR (latest available figure, as of Sep 24, 2026).
What growth is priced into RCL Foods Limited (RCLFF)?
For today's price to be fair in a discounted-cash-flow model, RCL Foods Limited would have to grow free cash flow by -11.3 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -1.0 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of RCLFF use?
Our models discount RCL Foods Limited at 9.8 %: a base by market capitalisation (small), damped by beta 0.09, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RCL Foods Limited that is -11.3 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has RCL Foods Limited (RCLFF) delivered so far?
Over the past 5 years revenue at RCL Foods Limited grew -1.0 % a year. The price currently implies -11.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of RCL Foods Limited (RCLFF) growing?
The median revenue growth in the sector is +2.8 % a year. That is the yardstick for the growth priced into RCL Foods Limited (-11.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of RCL Foods Limited (RCLFF)?
The free-cash-flow yield on the price is 15.94 %: that much free cash flow RCL Foods Limited produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RCL Foods Limited (RCLFF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RCL Foods Limited it is $1.71 per share (as of Sep 24, 2026), against a price of $0.5713. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is RCL Foods Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, RCLFF trades below its calculated fair value: price $0.5713, fair value $1.71, a gap of about +199% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RCLFF?
No. The price is what the market pays today ($0.5713); the fair value is what the company's own numbers justify ($1.71). For RCL Foods Limited the two are $1.14 per share apart. That gap is exactly why we show both numbers side by side.
How much is RCL Foods Limited worth?
The market values RCL Foods Limited at about $514M (market capitalisation, as of Sep 24, 2026). Per share that is $0.5713; our models calculate a fair value of $1.71 per share.
What do the bullish and bearish scenarios say about RCLFF?
Our models span a range for RCL Foods Limited: cautious scenario $1.14, base $1.71, optimistic $2.38 per share (as of Sep 24, 2026, price $0.5713). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RCLFF?
RCL Foods Limited trades at a price-to-earnings ratio of 6.3 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $1.71 is built from several models across several years. Other multiples: P/B 0.8, P/S 0.3, EV/EBITDA 4.2.
How solid is the balance sheet of RCL Foods Limited (RCLFF)?
Balance-sheet figures for RCL Foods Limited (as of Sep 24, 2026): return on equity 10.7%, debt of 0.15 per unit of equity. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is RCLFF from its 52-week high?
RCL Foods Limited trades at $0.5713, at its 52-week high of $0.5713 and 76% above the low of $0.3241 (as of Sep 18, 2026). Distance from the high says nothing about value: that is what the fair value of $1.71 is for.
Which stocks are comparable to RCL Foods Limited?
From the same area (Consumer Defensive) we also value Nestlé S.A, Danone S.A, The Kraft Heinz Company, Foshan Haitian Flavouring and Food Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RCL Foods Limited stock attractive at the current price?
The data as of Sep 24, 2026: price $0.5713, calculated fair value $1.71 (+199%), Quality Score 68/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RCLFF calculated?
We run RCL Foods Limited through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $1.71, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. RCL Foods Limited currently trades 199 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RCL Foods Limited (RCLFF)?
The closing price on Sep 18, 2026 was $0.5713. Our model-based fair value is $1.71, about +199% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RCL Foods Limited right now?
The price is below even our cautious bear case ($1.14). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($1.14 to $2.38) leaves room in how you read the outcome.
Where does the earnings growth of RCL Foods Limited (RCLFF) come from?
Earnings per share at RCL Foods Limited grew +9.8 % a year from 2015 to 2025. Broken into its drivers: revenue per share +2.2 %, EBIT margin +1.3 %, tax rate −0.2 %, residual (interest, one-offs) +6.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of RCL Foods Limited
How large is the market capitalisation of RCL Foods Limited (RCLFF)?
The market capitalisation of RCL Foods Limited is $514M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RCL Foods Limited (RCLFF)?
The price-to-sales ratio of RCL Foods Limited is 0.34 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RCL Foods Limited (RCLFF)?
Earnings per share at RCL Foods Limited are $0.0900 (price ÷ EPS = P/E 6.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of RCL Foods Limited (RCLFF)?
The net margin of RCL Foods Limited is 5.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RCL Foods Limited (RCLFF)?
The return on equity (ROE) of RCL Foods Limited is 10.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RCL Foods Limited (RCLFF)?
On an EBIT basis the return on assets of RCL Foods Limited is 6.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RCL Foods Limited (RCLFF)?
The operating margin of RCL Foods Limited is 6.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RCL Foods Limited (RCLFF)?
Revenue at RCL Foods Limited is growing −1.9% versus a year earlier (3y avg −8.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RCL Foods Limited (RCLFF)?
Earnings per share at RCL Foods Limited are growing −43.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does RCL Foods Limited (RCLFF) carry?
The net debt of RCL Foods Limited is 452M ZAR (fiscal year 2025, ≈ 0.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Sep 24, 2026