REXAM UNDER VALUED


Summary Analysis

REX.L is undervalued compared to its Price of $487.5GBX per share, has somewhat above average safety, and is currently rated a Hold.

Graphs

Rexam Plc


Container (Metal\\Glass)





Detailed Analysis


Capital Appreciation

Value: Value is a measure of a stock\'s current worth. REX.L has a current Value of $660.52GBX per share. Therefore, it is undervalued compared to its Price of $487.5GBX per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock\'s Price and Value always will converge.

RV (Relative Value): RV is an indicator of long-term price appreciation potential. REX.L has an RV of 1.10, which is good on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.



RS (Relative Safety): RS is an indicator of risk. REX.L has an RS rating of 1.16, which is good on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company\'s financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.

RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock\'s price trend. REX.L has a Relative Timing rating of 0.94, which is fair on a scale of 0.00 to 2.00. RT is computed from an analysis of the direction, magnitude, and dynamics of a stock\'s price movements over one day, one week, one quarter and one year time periods. Once a stock\'s price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00.

VST (VST-Vector): VST is the master indicator for ranking every stock in the VectorVest database. REX.L has a VST rating of 1.06, which is fair on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price.

Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. REX.L has a Hold recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.

REX Rexham.

Brokers bullish on the stock
and its trading on a forward P/E
of just 10.4 to 2013

REXAM PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
16-03-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.40 37.47 15.47 517.84 41.35 16.56

1 Month Change 0.14 0.01 -0.00 0.07 0.01 0.00
3 Month Change -0.16 -0.22 0.01 21.29 1.73 -0.32


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.88% 10.36%
DPS 5.83% 21.83% 7.00%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.95% 3.60% 3.85%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.69x 11.48x 10.40x
PEG 0.41f 6.10f 1.00f
Net Asset Value PS 15.68p 349.10p 378.20p

REX Rexham.

Brokers bullish on the stock
and its trading on a forward P/E
of just 10.4 to 2013

REXAM PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
16-03-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.40 37.47 15.47 517.84 41.35 16.56

1 Month Change 0.14 0.01 -0.00 0.07 0.01 0.00
3 Month Change -0.16 -0.22 0.01 21.29 1.73 -0.32


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.88% 10.36%
DPS 5.83% 21.83% 7.00%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.95% 3.60% 3.85%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.69x 11.48x 10.40x
PEG 0.41f 6.10f 1.00f
Net Asset Value PS 15.68p 349.10p 378.20p

REX Rexham.

Brokers bullish on the stock
and its trading on a forward P/E
of just 10.4 to 2013

REXAM PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
16-03-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.40 37.47 15.47 517.84 41.35 16.56

1 Month Change 0.14 0.01 -0.00 0.07 0.01 0.00
3 Month Change -0.16 -0.22 0.01 21.29 1.73 -0.32


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.88% 10.36%
DPS 5.83% 21.83% 7.00%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.95% 3.60% 3.85%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.69x 11.48x 10.40x
PEG 0.41f 6.10f 1.00f
Net Asset Value PS 15.68p 349.10p 378.20p

REXAM Broker Views

Date Broker Recommendation Price Old target price New target price Notes

21 Mar Alexander David Securities Buy 429.75 - - Reiterates
02 Mar Goldman Sachs Neutral 429.75 400.00 470.00 Retains
01 Mar Oriel Securities Add 429.75 - 450.00 Reiterates
23 Feb HB Markets Buy 429.75 - - Reiterates
23 Feb Credit Suisse Outperform 429.75 445.00 485.00 Retains

REX Rexham

Upgrade from broker Credit Suisse today........

REXAM Broker Views

Date Broker Recommendation Price Old target price New target price Notes

26 Mar Credit Suisse Outperform 435.25 485.00 485.00 Retains
21 Mar Alexander David Securities Buy 435.25 - - Reiterates
02 Mar Goldman Sachs Neutral 435.25 400.00 470.00 Retains
01 Mar Oriel Securities Add 435.25 - 450.00 Reiterates
23 Feb HB Markets Buy 435.25 - - Reiterates

REXHAM (rex)

Brokers still bullish on this and it
certainly is too cheap on a P/E of just
10.5 going into 2013 and NAV of 378.2p.

Derd cheap in fact.
REXAM PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
23-03-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.44 37.47 15.47 517.86 41.35 16.56

1 Month Change 0.19 0.02 -0.00 0.10 0.01 0.00
3 Month Change -0.11 -0.22 0.01 21.31 1.73 -0.32


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.89% 10.35%
DPS 5.83% 21.83% 7.01%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.91% 3.55% 3.80%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.86x 11.64x 10.54x
PEG 0.41f 6.15f 1.02f
Net Asset Value PS 15.68p 349.10p 378.20p

Rexham REX

Broker Upgrade just out..........

Rexam FTSE 100 Industrial Buy 538 427.7 25.8% AlphaValue

SP Target 538p 25.8% Upside.


Very Nice.

Rexham REX....

Positive broker backing

REXAM PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
23-03-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.44 37.47 15.47 517.86 41.35 16.56

1 Month Change 0.19 0.02 -0.00 0.10 0.01 0.00
3 Month Change -0.11 -0.22 0.01 21.31 1.73 -0.32


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.89% 10.35%
DPS 5.83% 21.83% 7.01%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.97% 3.62% 3.88%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.61x 11.40x 10.33x
PEG 0.41f 6.02f 1.00f
Net Asset Value PS 15.68p 349.10p 378.20p

REX REXHAM

Broker upgrade......

Rexam FTSE 100 Industrial Buy 533 418.6 27.3% AlphaValue


SP Target 533p 27.35% Upside

REXAM PLC

P/E of just over 10 to 2013.

Far too cheap for a quality company.

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Charles Stanley
13-04-12 ACCU 464.00 37.00 15.50 515.00 41.10 16.50
Seymour Pierce
01-02-12 BUY 483.60 38.70 15.40 525.30 42.00 16.70

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 469.55 37.48 15.47 517.92 41.36 16.56
1 Month Change 0.15 0.01 0.00 0.08 0.01 0.00
3 Month Change 0.26 -0.19 0.01 21.91 1.78 -0.33


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS 28.61% 1.92% 10.34%
DPS 5.83% 21.83% 7.01%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £191.00m £755.10m £799.60m
EBIT £m £557.50m £587.40m
Dividend Yield 2.98% 3.63% 3.88%
Dividend Cover 2.90x 2.42x 2.50x
PER 11.59x 11.37x 10.31x
PEG 0.40f 5.93f 1.00f
Net Asset Value PS 15.68p 349.10p 378.20p

REX REXHAM

On the brink of a 12 month breakout...

REX REXHAM

Some price targets form the
brokers..........

32.70 PEG 1.74

REXAM Broker Views
Date Broker Recommendation Price Old target price New target price Notes

30 Mar Credit Suisse Outperform 436.10 485.00 485.00 Retains
26 Mar Credit Suisse Outperform 436.10 485.00 485.00 Retains
21 Mar Alexander David Securities Buy 436.10 - - Reiterates
02 Mar Goldman Sachs Neutral 436.10 400.00 470.00 Retains
01 Mar Oriel Securities Add 436.10 - 450.00 Reiterates

REX REHAM

Nearing a breakout (again) and brokers
show still quite a bit left in this...

REXAM Broker Views
Date Broker Recommendation Price Old target price New target price Notes

08 Oct Credit Suisse Neutral 453.75 490.00 490.00 Reiterates
01 Oct Oriel Securities Buy 453.75 500.00 500.00 Reiterates
27 Sep Beaufort Buy 453.75 - - Reiterates
26 Sep Barclays Capital Overweight 453.75 - 550.00 Initiates/Starts
21 Sep Deutsche Bank Buy 453.75 480.00 480.00 Reiterates

StockMarketWire.com
Rexam said following completion of the sale of the Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business it will shortly post a circular (the Circular) to shareholders regarding the proposed Return of Cash by way of a B/C Share Scheme and a Share Capital Consolidation.

It would also post notice of a general meeting to approve the Return of Cash. The General Meeting has been convened for 11.00 am on Thursday 29 May 2014 at 4 Millbank, London SW1P 3XR.

Highlights of the Return of Cash:

- Shareholders to receive 57 pence per existing ordinary share, equating to an aggregate return of approximately £450m

- Return to be implemented by way of a B/C Share Scheme which, as with Rexam's previous return of cash in 2013, is intended to provide shareholders (other than those who are resident in a Prohibited Territory, as defined in the Circular) with a choice to receive the cash either as capital or as income, or as a combination of the two. Where the capital option is selected, shareholders also have a choice as to the timing of such return

- 8 for 9 share consolidation of the Existing Ordinary Shares into New Ordinary Shares.