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Reunert Limited (RLO) Fair Value & Analysis

Industrials · ZA · Market cap 9.4B ZAC

RL Reunert Limited RLO · JSE
PriceR59.56
Fair ValueR112.54
Upside+89.0%
Quality57/100
Mixed Growth
Thin margins · 6.4% net margin
Low debt · generates free cash flow
0.06% dividend yield
Ranks above peers (11/15)
Narrow moat 43/100
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Evidence: High Range R69.99 – R154.69 Share as image

Fair value as of: Jul 19, 2026

From 25 valuation models · updated 16 days ago

Share price −1.5% over the past month.

A solid business, screening 89% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R69.99). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R69.99 to R154.69) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R82.38 R36.84 Fair Value R112.54 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range R36.84 – R82.38 · fair‑value band R69.99 – R154.69 · the R59.56 price screens below the R112.54 fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Reunert Limited (RLO) currently trades at R59.56, while our model-based Fair Value estimate is R112.54, implying the stock looks roughly 89.0% undervalued today. We read business quality at 57/100 (solid quality), in the Industrials 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: high), always confirm before acting.

Over the trailing twelve months, Reunert Limited generated revenue of 14.0B ZAR at a net margin of 6.4%. Revenue grew 1.5% year over year. It earns a return on equity of 12.1%. Net debt stands at 70.0M ZAR. Fundamentals as of Jul 19, 2026

Our scenario range runs from R69.99 (bear case) to R154.69 (bull case); at R59.56, the current price sits below that range. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 89%, RLO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF R35.12 R46.85 R62.31 80
Residual Income R46.33 R52.56 R82.22 76
Rev-Margin DCF R67.49 R109.08 R153.71 74
All 25 models by family
DCF Models
FCF DCF R34.42 R47.24 R64.96 38
Owner Earnings R74.60 R104.81 R146.56 31
5Y Revenue Exit R67.49 R109.44 R162.15 39
5Y EBITDA Exit R80.05 R131.98 R190.92 41
5Y P/E Exit R64.41 R103.92 R143.83 38
10Y Revenue Exit R51.98 R86.49 R130.92 36
10Y EBITDA Exit R62.12 R101.44 R151.57 37
10Y P/E Exit R52.53 R82.82 R117.77 35
Earnings-Based
Graham-Dodd R40.07 R99.22 R128.59 54
PEG = 1.0 R17.99 R25.69 R33.40 46
EPV R70.02 R80.32 R89.20 59
Dividend Discount
Gordon GGM R32.75 R58.61 R90.97 70
DDM Multi-Stage R32.75 R48.59 R65.13 61
Multiples
P/E Multiple R88.40 R117.86 R147.33 63
P/S Multiple R75.14 R100.18 R125.23 58
P/B Multiple R75.14 R100.18 R125.23 55
EV/EBIT R134.98 R178.37 R221.75 53
EV/EBITDA R121.72 R160.69 R199.65 54
EV/Revenue R92.56 R130.16 R167.76 43
Asset-Based
NCAV (Graham) R25.60 R34.30 R51.19 50
Growth DCF
Growth DCF R35.12 R46.85 R62.31 80
Rev-Margin DCF R67.49 R109.08 R153.71 74
Economic Profit
Residual Income R46.33 R52.56 R82.22 76
ROIC Compounder R72.42 R87.56 R104.38 72
Growth Earnings
Growth-Adj P/E R68.18 R97.41 R126.63 68

Widest divergence: Multiples (R117.86) versus Asset-Based (R34.30). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 14.0B ZAC
Revenue growth (YoY) +1.5%
Net margin 6.4%
Return on equity 12.1%
Free cash flow 454M ZAC FY2025
P/E ratio 10.5
More key figures
Operating margin 6.9%
EPS (TTM) R5.68
Dividend yield 0.1%
EPS growth (YoY) -9.8%
Net debt 70.0M ZAC FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 58 · Market factors (momentum, volatility) 50

Profitability 48
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Reunert Limited operates in the fields of electrical engineering, information communication technologies (ICT), and applied electronics in South Africa, rest of Africa, the United States, Australia, Asia, and Europe.

Full company description

Reunert Limited operates in the fields of electrical engineering, information communication technologies (ICT), and applied electronics in South Africa, rest of Africa, the United States, Australia, Asia, and Europe. Its Electrical Engineering segment designs, manufactures, installs, and maintains power cables; manufactures and supplies low-voltage distribution, protection, and control equipment, as well as supplies high and medium-voltage switchgears. This segment is also involved in the wheeling business. The company's ICT segment offers office equipment, communication equipment, automation products, and related devices; cloud-based virtual private branch exchange (VBX) offerings, hosted call recording, and business internet access products; converged networking, communications, and security solutions; and wireless, fibre, satellite, and LTE connectivity solutions, as well as consulting services, digital solutions, managed services, and cloud services. Its Applied Electronics segment provides search and tracking radar systems; radar sensor systems; ground and naval search and tracking radar systems; communication systems; cryptographic products and solutions; electronic components and printed circuit boards; remote controlled stabilized weapons platforms; and energy engineering and storage solutions. This segment also offers military and commercial products, including technology solutions; and electronic manufacturing services. It serves municipalities, parastatals, utilities, the mining and building industries, corporate and retail customers, small to medium-sized enterprises (SMEs), government, and state-owned entities, and defense forces. Reunert Limited was founded in 1888 and is headquartered in Sandton, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Reunert Limited reported revenue of R13.9B in FY2025 versus R9.6B in FY2021, a compound +9.7%/yr. Reported net income was R926M in FY2025, compounding +4.5%/yr from FY2021.

Growth Quality 73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
13.9B ZAR
Latest YoY
−3.9%
Avg. growth/yr (3Y)
+7.6%
Avg. growth/yr (5Y)
+12.8%
Avg. growth/yr (23Y)
+4.5%
Revenue +9.7%/yr
FY21 R9.6B
FY22 R11.1B
FY23 R13.8B
FY24 R14.4B
FY25 R13.9B
Net income +4.5%/yr
FY21 R777M
FY22 R827M
FY23 R919M
FY24 R1.0B
FY25 R926M

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Cite: Fair Value Calculator (2026). "Reunert Limited Fair Value". https://www.fairvalue-calculator.com/stock/RLO

Peer Group

Electrical Equipment & Parts · 577 stocks

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.

Quality Score 56 · Above median
Fair Value upside +89% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 10.5× · Cheaper than 75% of peers
P/B 1.16× · Cheaper than median
P/S (TTM) 0.67× · Cheaper than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 5.4× · Cheaper than 75% of peers
PEG 71.71× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 8 · sector 57
PAST 48 · sector 23
HEALTH 94 · sector 97
DIVIDEND 1 · sector 17

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 12.39 SGD 1.48 SGD -88%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Reunert Limited (RLO) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of R112.54 versus a price of R59.56, about +89% (undervalued).
What is the fair value of RLO?
Our model-based fair value for Reunert Limited is R112.54 (as of Jul 19, 2026), built from audited fundamentals. The current price is R59.56.
What is the quality score of RLO?
Reunert Limited has a Quality Score of 57/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Reunert Limited (RLO)?
Reunert Limited reported trailing-twelve-month revenue of about 14.0B ZAR (latest available figure, as of Jul 19, 2026).
What is the net profit margin of RLO?
The net profit margin of Reunert Limited is about 6.4%, meaning it keeps roughly 6.4% of revenue as net income. Based on the latest reported figures.
Does Reunert Limited pay a dividend?
Reunert Limited currently shows a dividend yield of about 0.06% relative to its recent price (as of Jul 19, 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.

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