RXEEY - COVID-19 Worries Overshadowing Real Progress At Rexel

• Rexel's third quarter sales contracted 4% in organic terms, but came in a little better than expected, with outperformances in all three operating regions.
• Healthy residential and recovering industrial markets are driving better results in France and Germany, while the U.S. is a much more muddled situation, hurt by weakness in large commercial/industrial projects.
• The future benefits of Rexel's digital transformation are still underappreciated by the market; driving the digital sales mix toward 50% can double country-level EBITDA margins and improving working capital efficiency.
• Near-term EBITDA margins in the 5%-6% range and long-term FCF growth of around 6% can support double-digit annualized returns from today's price.

For further details see: