The factors in favour of a rise in the Rexel share price:
First of all, the Rexel group's positioning on the world market is of course one of its main assets. Indeed, Rexel is the international leader in the professional distribution of electrical supplies for industry, commercial construction and residential building. Rexel holds more than 8% of the market share in this business sector.
We can also appreciate the distribution of the group's activities with regard to its various products. There are seven main product families, with electrical installation equipment accounting for more than 40% of sales, lighting ducts or cables each accounting for 20% of sales, security and communication, HVAC engineering, tools and white and brown products. This diversity of products provides the group with an interesting protection against the risks associated with one and the same type of product.
From a geographical point of view, Rexel's activities are also particularly well distributed. Thus, Rexel generates 56% of its sales in Europe, 43% in the United States and 10% in Asia. Here again, this gives it less exposure to the geographical risk associated with a single sector.
Also with regard to the Rexel Group's customers, there is an interesting distribution between the different end markets. Thus, the commercial building sector generates 44% of the Group's sales, the industrial sector generates 35% and the residential sector generates 21%.
The Rexel Group also benefits from a definite advantage over its competitors, as it generates more than two-thirds of its sales in markets in which it is either the leader or the second largest. We can also appreciate the very interesting rise in digital sales, which alone account for more than 16% of sales.
Finally, the Rexel Group is currently benefiting from a growth driver in energy savings and renewable energies, which are of course two sectors that have been booming in recent years.
From a strictly financial point of view, it should also be noted that Rexel follows strict discipline in order to reduce its level of debt, which is already bearing fruit.