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Renault (FR:RNO)
:RNO
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Renault (RNO) AI Stock Analysis

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FR:RNO

Renault

(LSE:RNO)

Rating:70Neutral
Price Target:
€37.00
▲(9.63%Upside)
Renault's overall stock score is driven by solid financial performance, particularly in cash flow generation and revenue growth. While valuation is fair, technical analysis suggests mixed signals with bearish trends observed. Key areas for improvement include enhancing profitability metrics to boost shareholder returns.
Positive Factors
Financial Position
Renault’s €7.1bn net auto net financial position positively surprised, and now equals approximately 50% of its current market capitalization.
Partnerships
Cooperation with Geely continues to take shape, creating opportunities for growth and synergies.
Product Development
The upcoming Twingo BEV boasts a development time of less than two years and will have a price tag below €20k, making it a truly affordable BEV.
Negative Factors
Earnings Expectations
Renault's 2024 results and 2025 outlook are both towards the low end of market expectations, leaving no room for upgrades.
Profit Margins
CO2 compliance was a bigger than feared overhang, impacting margins due to Renault's 18% EU share in light commercial vehicles.
Stock Downgrade
The analyst downgrades the stock to Hold due to reduced earnings and lower net liquidity.

Renault (RNO) vs. iShares MSCI France ETF (EWQ)

Renault Business Overview & Revenue Model

Company DescriptionRenault SA designs, manufactures, sells, and distributes vehicles in France and internationally. The company operates through Automotive, AVTOVAZ, Sales Financing, and Mobility Services segments. It offers passenger and light commercial, and electric vehicles primarily under the Renault, Dacia, Renault Samsung Motors, Alpine, LADA, Jinbei & Huaasong, and Eveasy, as well as under the Nissan, Datsun, and Infiniti brands. The company also sells powertrains and used vehicles, and spare parts; and provides various services, including vehicle sales financing, rental, maintenance, and service contracts. In addition, it offers finance for the purchase on inventories of new and used vehicles, and replacement parts; designs, produces, and sells converted vehicles; Renault EASY CONNECT for Fleet, a connected service for business users; and produces driving aids, such as steering-wheel mounted accelerators and brakes, multifunction remote control units to operate indicators, lights and horns, pedal transfers, etc.; and manual or electric swivel seats. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.
How the Company Makes MoneyRenault makes money primarily through the design, manufacture, and sale of vehicles. Its revenue streams are diversified across several segments, including passenger cars, commercial vehicles, and electric vehicles. A significant part of Renault's income comes from its global sales network, which includes dealerships, service centers, and online platforms. Additionally, Renault benefits from its strategic alliances, particularly the Renault-Nissan-Mitsubishi Alliance, which enables cost-sharing in research and development, production, and marketing. The company also generates revenue through aftersales services, financial services, and leasing agreements. Key factors contributing to Renault's earnings include its strong presence in Europe, growth in emerging markets, and investments in innovative technologies such as electric mobility and connected cars.

Renault Financial Statement Overview

Summary
Renault exhibits solid revenue growth and robust cash flow management, as evidenced by a 7.37% increase in revenue and a 194.11% growth in free cash flow. However, the net profit margin of 1.34% and ROE of 2.48% indicate moderate profitability and efficiency challenges, suggesting the need for improvement in generating shareholder value.
Income Statement
74
Positive
Renault's income statement reflects a positive trajectory in revenue growth, with a 7.37% increase from 2023 to 2024. The gross profit margin is healthy at 20.78%, although the net profit margin is relatively low at 1.34%, indicating moderate profitability challenges. The EBIT margin of 4.58% and EBITDA margin of 10.54% suggest adequate operational efficiency, though improvements could enhance overall profitability.
Balance Sheet
68
Positive
The balance sheet shows a solid equity base with an equity ratio of 23.43%. The debt-to-equity ratio is 0.32, indicating reasonable leverage. However, the return on equity (ROE) is low at 2.48%, highlighting challenges in generating returns for shareholders. The company's financial stability is supported by a substantial cash balance.
Cash Flow
81
Very Positive
Renault demonstrates robust cash flow management, with a significant free cash flow growth rate of 194.11% from 2023 to 2024. The operating cash flow to net income ratio is strong at 9.52, indicating efficient cash generation relative to net income. Free cash flow to net income ratio is notably high at 5.47, reflecting excellent free cash flow conversion.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue56.23B52.38B46.39B41.66B43.47B
Gross Profit11.69B10.90B8.27B6.87B6.01B
EBITDA5.93B6.39B7.59B4.80B3.65B
Net Income752.00M2.20B-338.00M888.00M-8.01B
Balance Sheet
Total Assets129.37B121.91B118.32B113.74B115.74B
Cash, Cash Equivalents and Short-Term Investments23.07B20.20B22.36B22.82B22.12B
Total Debt9.57B65.08B64.34B61.96B64.89B
Total Liabilities98.26B91.28B88.78B85.85B90.40B
Stockholders Equity30.31B29.75B28.80B27.32B24.77B
Cash Flow
Free Cash Flow4.11B1.40B929.00M-277.00M1.54B
Operating Cash Flow7.16B4.46B3.61B2.41B5.75B
Investing Cash Flow-2.04B-2.23B-3.24B-1.62B-4.23B
Financing Cash Flow-3.23B-3.08B-532.00M-629.00M5.59B

Renault Technical Analysis

Technical Analysis Sentiment
Negative
Last Price33.75
Price Trends
50DMA
41.82
Negative
100DMA
43.37
Negative
200DMA
43.09
Negative
Market Momentum
MACD
-2.17
Positive
RSI
29.65
Positive
STOCH
6.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RNO, the sentiment is Negative. The current price of 33.75 is below the 20-day moving average (MA) of 38.47, below the 50-day MA of 41.82, and below the 200-day MA of 43.09, indicating a bearish trend. The MACD of -2.17 indicates Positive momentum. The RSI at 29.65 is Positive, neither overbought nor oversold. The STOCH value of 6.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RNO.

Renault Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
€9.83B12.302.50%6.52%7.36%-64.31%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
€1.98B10.39-4.21%4.96%
€1.97B13.382.80%
€2.52B15.544.44%4.05%
$27.04B13.5610.41%0.11%
55
Neutral
€3.12B103.18
0.07%15.42%160.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:RNO
Renault
33.75
-8.20
-19.55%
GB:0MGR
Forvia
10.19
0.07
0.69%
GB:0HV8
Peugeot Invest SA
78.50
-2.85
-3.50%
GB:0RH5
Valeo
10.34
1.44
16.18%
MGDDF
Compagnie Générale des Établissements Michelin
37.75
0.03
0.08%
FR:MLHK
H&K AG
80.50
-32.38
-28.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025