Renault (RNO) AI Stock Analysis

• Market Cap: €8.26B
• Dividend Yield: 6.19%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.06
• Revenue Growth: 8.44%
• EPS Growth: -937.75%
• Country: FR
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 2.75
• Shares Outstanding: 295,722,260
• 10 Day Avg. Volume: 1,001,853
• 30 Day Avg. Volume: 1,051,508
• PEG Ratio: <0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -13.73
• 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: €37.79
• Price Target Upside: 32.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 6.76
• Revenue Forecast (FY): €59.10B

• Rating: 48 Neutral
• Price Target: €28.00 ▼(-1.79% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily held down by weak financial performance in 2025 (large losses, higher leverage, and negative free cash flow). Technicals are mildly bearish with the stock below key longer-term moving averages and a slightly negative MACD. Valuation is partially supported by a high dividend yield, but the negative P/E reflects current loss-making profitability.

Positive Factors

Alliance & R&D partnerships

Membership in the Renault‑Nissan‑Mitsubishi Alliance and technology partnerships create a durable structural advantage: shared R&D and platform costs lower per-unit development spend, accelerate EV/autonomy rollouts, and expand geographic reach, supporting competitiveness over years.

Sustained revenue growth and scale

Consistent top-line expansion to ~€57.9B in 2025 reflects growing scale. Larger scale supports manufacturing efficiencies, supplier bargaining power, and broader distribution, which are durable fundamentals that help absorb cycles and enable continued investment in product and technology.

Demonstrated cash-generation ability in some years

Although volatile, the company has shown it can convert earnings into meaningful free cash flow in stronger years. That intrinsic cash-conversion capability underpins long-term capacity to fund capex, EV investments, or deleverage when operating performance normalizes.

Negative Factors

High leverage and weakened equity cushion

Elevated debt and a materially reduced equity base significantly constrain financial flexibility. A ~3.3x debt-to-equity ratio increases refinancing and interest-rate exposure, limits room for strategic investments or shocks, and raises medium-term risk of forced deleveraging.

Sharp 2025 profitability deterioration

A rapid shift from modest profit to large net losses indicates structural pressure on the operating model—either cost, mix, or pricing issues. Persistent inability to translate steady gross margins into operating profit risks sustained earnings weakness absent operational fixes.

Volatile cash flow and recent negative free cash flow

Significant cash-flow volatility and a recent negative FCF reduce capacity to fund capex, service debt, or maintain dividends without external financing. This structural volatility heightens refinancing and funding risk and limits strategic optionality over the medium term.

Renault Business Overview & Revenue Model

Company Description

Renault 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 Money

Renault generates revenue primarily through the sale of vehicles, which includes passenger cars and commercial vehicles. The company has diversified its revenue streams by investing in electric vehicle technologies, with a growing range of EV models that cater to the increasing demand for sustainable transportation solutions. Additionally, Renault earns money through financing activities via its Renault Financial Services, which offers loans and leasing options to customers. Partnerships within the Renault-Nissan-Mitsubishi Alliance facilitate cost-sharing in research and development, allowing Renault to enhance its product offerings while reducing expenses. Furthermore, the company benefits from strategic collaborations with technology firms to advance autonomous driving and connectivity features, which may create additional revenue opportunities.

Renault Financial Statement Overview

Summary

Despite strong revenue growth over the period, 2025 saw a sharp deterioration with deep operating and net losses, weaker equity, higher leverage (debt-to-equity rising to ~3.3x), and free cash flow turning negative. Operating cash flow remained positive but fell materially versus 2024, highlighting volatility and balance-sheet risk.

Income Statement

Revenue has expanded strongly over the period (from ~€43.5B in 2020 to ~€57.9B in 2025), showing improving scale. However, profitability is volatile and deteriorated sharply in 2025, swinging from a modest profit in 2024 (net margin ~1.3%) to a large loss (net margin ~-18.9%), with operating results also deeply negative. Gross margin has been fairly steady around the high-teens/low-20s, but the inability to translate that into consistent operating and net profits meaningfully pressures the score.

Balance Sheet

The balance sheet is asset-heavy (~€121B assets in 2025) with high leverage: debt remains elevated (~€68.9B in 2025) and debt-to-equity rose to ~3.3x in 2025 (from ~2.2–2.6x in prior years). Equity also declined materially in 2025 (to ~€20.8B from ~€30.3B in 2024), which reduces the cushion against downturns. The key positive is that leverage had been relatively stable before the 2025 hit, but the latest year shows a clear weakening in financial flexibility.

Cash Flow

Cash generation is mixed. Operating cash flow stayed positive in 2025 (~€2.3B) but fell sharply versus 2024 (~€7.2B), and free cash flow turned negative in 2025 (~-€0.7B) after strong positive free cash flow in 2024 (~€4.1B). The business has demonstrated an ability to produce meaningful free cash flow in some years (notably 2024 and 2020), but the recent reversal and high year-to-year volatility reduce confidence in consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.92B	56.23B	52.38B	46.33B	41.66B
Gross Profit	11.05B	11.69B	10.90B	9.06B	7.92B
EBITDA	-5.83B	3.85B	5.26B	4.78B	4.08B
Net Income	-10.93B	752.00M	2.20B	-354.00M	888.00M
Balance Sheet
Total Assets	121.01B	129.37B	121.91B	118.29B	113.74B
Cash, Cash Equivalents and Short-Term Investments	19.28B	23.07B	21.18B	22.36B	22.82B
Total Debt	68.94B	71.69B	66.50B	64.34B	61.96B
Total Liabilities	98.71B	98.26B	91.28B	88.60B	85.85B
Stockholders Equity	20.79B	30.31B	29.75B	28.95B	27.32B
Cash Flow
Free Cash Flow	-705.00M	4.11B	1.40B	929.00M	-277.00M
Operating Cash Flow	2.34B	7.16B	4.46B	3.61B	2.41B
Investing Cash Flow	-3.30B	-2.02B	-2.13B	-3.24B	-1.62B
Financing Cash Flow	-1.33B	-3.25B	-3.08B	-532.00M	-629.00M

Renault Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 28.51 is below the 20-day moving average (MA) of 31.47, below the 50-day MA of 32.45, and below the 200-day MA of 35.13, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 28.26 is Positive, neither overbought nor oversold. The STOCH value of 6.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ML	72 Outperform	€21.34B	11.99	8.49%	4.95%	-3.62%	-17.91%
PEUG	64 Neutral	€1.67B	3.76	0.83%	4.29%	-48.21%	-64.53%
FRVIA	63 Neutral	€2.04B	-10.74	-11.30%	3.79%	-0.90%	-324.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLHK	61 Neutral	€1.23B	31.98	―	0.14%	8.61%	110.91%
FR	52 Neutral	€2.62B	14.37	3.67%	3.66%	-4.16%	-48.55%
RNO	48 Neutral	€8.26B	9.53	-46.54%	6.19%	8.44%	-937.75%