7.125% Fixed-Rate Reset Subordinated Debentures due 2052
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 Fundamental Analysis
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) shows weak financial fundamentals with a PE ratio of 12.21, profit margin of 5.05%, and ROE of 9.48%. The company generates $23.7B in annual revenue with weak year-over-year growth of -99.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -55.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RZC's fundamental strength across five key dimensions:
Efficiency Score
WeakRZC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRZC trades at attractive valuation levels.
Growth Score
WeakRZC faces weak or negative growth trends.
Financial Health Score
ModerateRZC shows balanced financial health with some risks.
Profitability Score
WeakRZC struggles to sustain strong margins.
Key Financial Metrics
Is RZC Expensive or Cheap?
P/E Ratio
RZC trades at 12.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RZC's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.72 times EBITDA. This is generally considered low.
How Well Does RZC Make Money?
Net Profit Margin
For every $100 in sales, 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 keeps $5.05 as profit after all expenses.
Operating Margin
Core operations generate 6.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.48 in profit for every $100 of shareholder equity.
ROA
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 generates $0.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 produces operating cash flow of $4.15B, showing steady but balanced cash generation.
Free Cash Flow
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 generates strong free cash flow of $4.15B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $61.90 in free cash annually.
FCF Yield
RZC converts 28.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How RZC Stacks Against Its Sector Peers
| Metric | RZC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.21 | 18.73 | Better (Cheaper) |
| ROE | 9.48% | 847.00% | Weak |
| Net Margin | 5.05% | 3919.00% | Weak |
| Debt/Equity | 0.42 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.75% | -21563.00% (disorted) | Weak |
RZC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews 7.125% Fixed-Rate Reset Subordinated Debentures due 2052's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-99.86%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-99.92%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
280.01%
Industry Style: Value, Dividend, Cyclical
High Growth