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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$127.3m
Last closeNZ$0.26
High / Low (52 weeks)NZ$0.3 / NZ$0.2
Stock market listingNZ
Forecast net debt (US$m)19
Forecast gearing ratio (%)13
TeamIndustrials
SectorConstruction & Building Materials

Price performance

%1m3m12m
Actual(3.7)(7.1)36.8
Relative *(4.8)(9.8)19.3

* % 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 14.5 21.2
2019E 51.0 5.0 5.0 1.1 15.8 12.1
2020E 59.0 9.0 10.0 2.0 8.7 8.5

Last updated on 10/09/2018

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.

Last updated on 10/09/2018

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
Auckland
1145
New Zealand
+649356 9800
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