09:45:28 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Rona Inc
Symbol RON
Shares Issued 115,991,010
Close 2014-11-14 C$ 14.39
Market Cap C$ 1,669,110,634
Recent Sedar Documents

Inv Reporter says hold Rona

2014-11-15 00:20 ET - In the News

The Investment Reporter, in its Nov. 7, 2014, issue, says hold Rona Inc., recently $14.07. The Reporter said buy four times from July 3, 2009, to Feb. 14, 2014, at prices ranging from $10.86 to $13.84. A $1,000 investment for each of the four buys would now be worth $4,530. The Reporter has downgraded Rona to a hold. The recent surge in its share price has cut the potential for short-term gains because, according to the Reporter, "the shares have gone up too far, too fast." The home improvement retailer expects to earn 72 cents a share in 2014, up from 41 cents a share in 2013. Based on this estimate, the shares trade at an excessive forward price-to-earnings ratio of 19.5 times. In 2015, however, earnings are set to rise by nearly 28 per cent a share. This would give the stock a more reasonable P/E ratio of 15.3 times. Given Rona's relatively low earnings, its return on equity is an unimpressive 5.7 per cent. Its management owns only 0.2 per cent of the shares, meaning it has relatively little "skin in the game." The company carries little debt. On balance, Rona is a hold. Its dividend of 14 cents a share offers a small yield of under 1 per cent.

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