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Rubicon (RBC)

Business description

Rubicon is an NZX-listed investment company whose ArborGen subsidiary is the world’s largest integrated developer, manufacturer and commercial supplier of advanced forestry seedlings with operations in the US, Brazil and Australasia.

Stock data

Market cap.NZ$122.4m
Last closeNZ$0.25
High / Low (52 weeks)NZ$0.3 / NZ$0.2
Stock market listingNZ
Forecast net debt (US$m)19
Forecast gearing ratio (%)13
SectorConstruction & Building Materials

Price performance

Relative *0.2(7.9)24.1

* % Relative to local index

Other companies in sector Show

Company news

Y/E Mar Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2017A N/A N/A N/A N/A N/A N/A
2018A 35.0 6.0 4.0 1.2 13.6 20.0
2019E 51.0 5.0 5.0 1.1 14.9 11.4
2020E 59.0 9.0 10.0 2.0 8.2 8.0

Last updated on 22/10/2018

Investment summary

The simplified corporate structure presents investors in Rubicon (RBC) with a pure-play, advanced forestry genetics business with leading positions in large international markets for its seedlings. The conversion of these positions into profitable growth through customer migration to more advanced seedlings is the likely driver of further share price outperformance, in our view. Our own DCF analysis - implicitly more conservative than the company’s - yields a NZ$0.74 per share valuation. At the company’s ASM, management noted that it is pursuing another opportunity similar to the Taylor nursery agreement and also a new seedling supply contract in New Zealand. The company notes some storm damage at one of its US nurseries but has maintained current year guidance.

Last updated on 26/10/2018

Industry outlook

The economic growth outlook in each of its core countries being the USA, Brazil, New Zealand and Australia is either good or improving, according to OECD data. Consequently, the primary end-markets served by its plantation forestry customer base (being construction, and the pulp and paper industries) are in a positive cyclical phase.

Last updated on 26/10/2018

Key management

Luke Moriarty, CEO
Sharon Ludher-Chandra, Business Development Executive
Alex Brown, IT
Mark Taylor, Chief Financial Officer and Company Secretary

Company address

PO Box 68 249, Newton
New Zealand
+649356 9800
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