7.125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC)
Valuation Overview•Is 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
RZC demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (12.8% 3Y CAGR) paired with highly explosive earnings growth (32.3% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 6.5%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.5M | +3.4% | +12.8% | +9.3% | +8.1% | |
| EBITDA | $441K | — | +27.9% | — | — | |
| Net Income | $331K | +64.9% | +31.7% | — | +8.9% | |
| EPS (Diluted) | $0.00 | +64.9% | +32.3% | +22.9% | +9.0% | |
| Free Cash Flow | $2.9B | -56.3% | +45.9% | +4.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 17.4% | 16.5% | 14.2% | 14.3% |
| Operating Margin | 6.5% | 5.8% | 6.1% | 6.7% |
| Net Margin | 4.9% | 4.4% | 4.8% | 5.9% |
| FCF Margin | 30.5% | 27.5% | 23.3% | 19.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $6.97 | — | ||
| Q1'26 | — | $7.75 | — | ||
| Q1'24 | — | $4.73 | — | ||
| Q4'23 | — | $5.57 | — | ||
| Q3'23 | — | $4.40 | — | ||
| Q2'23 | — | $5.16 | — | ||
| Q1'23 | — | $2.99 | — | ||
| Q4'22 | — | $4.19 | — |
Total return is +7.1% (1Y), lagging the benchmark by -17.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +2.6% | -6.7% | — |
| 1Y | +7.1% | -17.9% | +6.9% |
| 3YCAGR | +6.6% | -13.0% | +20.9% |
| 5YCAGR | +4.8% | -7.7% | +25.1% |
| 10YCAGR | +2.4% | -11.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) valuation, health, and returns.
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +712.3% upside to DCF intrinsic value of $208.83)
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 has multiple valuation anchors: DCF Intrinsic Value: $208.83 | Peer Relative Fair Value: $553.29. A convergence of these signals offers higher conviction.
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 displays fair financial health with a composite quality score of 59/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 8.3%.
7.125% Fixed-Rate Reset Subordinated Debentures due 2052 pays a 14.0% dividend yield, covered by a 20% payout ratio with 0 years of growth, supplemented by a 10.1% buyback yield.
7.125% Fixed-Rate Reset Subordinated Debentures due 2052's current growth trajectory is Decelerating. The company achieved +3.4% 1Y revenue growth and +64.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +12.8%.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for 7.125% Fixed-Rate Reset Subordinated Debentures due 2052 include: -3.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.12x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.