Renold plc (RNO) AI Stock Analysis

• Market Cap: £96.84M
• Dividend Yield: 1.16%
• Average Volume (3M): 917.18K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.28
• Revenue Growth: -6.48%
• EPS Growth: N/A
• Country: UK
• Employees: 1,824
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 225,417,740
• 10 Day Avg. Volume: 688,603
• 30 Day Avg. Volume: 917,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 3.80
• P/FCF Ratio: 3.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Renold plc demonstrates strong financial performance with robust profitability and cash flow, albeit with some historical instability. Technical indicators are mixed, pointing to potential downward momentum, but valuation metrics suggest the stock is undervalued. The absence of earnings call and corporate events data does not impact the analysis. Overall, Renold plc presents a balanced investment opportunity with potential for growth.

Renold plc Business Overview & Revenue Model

Company Description

Renold plc is a global engineering company that specializes in the manufacture of high-quality power transmission products and services. The company operates in the industrial engineering sector, focusing on the production of chains, gearboxes, couplings, and related components. Renold serves a wide range of industries, including manufacturing, transportation, energy, and mining, providing reliable solutions for various mechanical power transmission needs.

How the Company Makes Money

Renold plc generates revenue through the sale of its power transmission products and services. The company's key revenue streams include the production and distribution of industrial chains, gearboxes, and couplings, which are critical components used in machinery across various sectors. Renold benefits from a diverse customer base, including manufacturers, industrial operators, and service providers. The company's earnings are influenced by its global distribution network, strategic partnerships, and a focus on innovation to meet the evolving needs of industrial clients. Renold also invests in research and development to enhance its product offerings and maintain a competitive edge in the market.

Renold plc Financial Statement Overview

Summary

Renold plc demonstrates solid profitability with stable gross and net profit margins. Despite inconsistent revenue growth, the company shows strong operational efficiency and robust cash flow. The balance sheet indicates improved financial stability, although historical financial instability is noted.

Income Statement

Renold plc demonstrates a solid profitability trajectory, with stable gross profit and net profit margins. The gross profit margin has improved over the years, reaching 13.42% in the latest period. The net profit margin also shows a positive trend, increasing to 7.08%. Revenue growth has been inconsistent, with a recent decline, but overall profitability metrics such as EBIT and EBITDA margins remain strong, indicating efficient operations.

Balance Sheet

The balance sheet reflects improved equity and leverage positions. The debt-to-equity ratio has decreased significantly, indicating reduced leverage risk. The equity ratio has improved, signaling stronger financial stability. However, the company has previously experienced negative equity, suggesting potential historical financial instability.

Cash Flow

Renold plc shows a robust cash flow position, with significant growth in free cash flow. The operating cash flow to net income ratio suggests effective cash generation from operations. The company has been able to maintain positive free cash flow, enhancing financial flexibility and capability to reinvest in business operations.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
241.40M	247.10M	195.20M	165.30M	189.40M
	Gross Profit
32.40M	27.10M	18.20M	8.10M	14.90M
	EBIT
29.40M	24.70M	16.20M	6.90M	13.30M
	EBITDA
38.40M	31.70M	23.80M	10.90M	19.10M
	Net Income Common Stockholders
17.10M	11.80M	10.20M	4.60M	3.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.80M	19.30M	10.50M	19.90M	15.60M
	Total Assets
238.00M	249.70M	197.60M	188.70M	216.00M
	Total Debt
57.80M	69.30M	36.30M	53.70M	69.30M
	Net Debt
40.00M	50.00M	25.80M	33.80M	53.70M
	Total Liabilities
187.80M	210.60M	190.60M	203.40M	216.40M
	Stockholders Equity
50.20M	39.10M	7.00M	-14.70M	-400.00K
Cash Flow		Free Cash Flow
22.00M	5.30M	12.50M	21.60M	-1.00M
	Operating Cash Flow
32.20M	13.70M	17.80M	24.70M	8.20M
	Investing Cash Flow
-14.80M	-22.90M	-5.60M	-2.90M	-11.00M
	Financing Cash Flow
-20.10M	17.10M	-20.40M	-20.30M	-2.70M

Renold plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNO, the sentiment is Positive. The current price of 43 is above the 20-day moving average (MA) of 40.83, above the 50-day MA of 42.45, and below the 200-day MA of 50.37, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RNO.

Renold plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMIN	75 Outperform	£5.66B	18.95	13.99%	2.59%	6.10%	33.05%
IMI	73 Outperform	£4.23B	17.35	23.50%	1.75%	0.64%	4.92%
SPX	71 Outperform	£4.26B	22.28	16.16%	2.79%	-1.03%	4.06%
RNO	70 Outperform	£96.84M	5.99	27.26%	1.16%	-6.48%	―
WEIR	69 Neutral	£5.42B	17.36	17.83%	1.84%	-4.95%	36.95%
VCT	68 Neutral	£641.02M	37.26	3.58%	8.08%	-5.21%	-72.13%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%

Renold plc Corporate Events

Jupiter Fund Management Reduces Stake in Renold PLC

Renold PLC, a UK-based public limited company, has undergone a notable change in its shareholding structure. Jupiter Fund Management PLC has reduced its voting rights in Renold PLC from 11.13% to 10.64%, as reported on January 27, 2025. This adjustment reflects a strategic shift in Jupiter Fund Management’s investment approach, potentially impacting Renold’s market dynamics and stakeholders.