Renault (0NQF) AI Stock Analysis

• Market Cap: €12.45B
• Dividend Yield: 5.12%
• Average Volume (3M): 838.42K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 98,636
• Sector: Industrials
• Sector Strength: 91
• Industry: Auto - Manufacturers
• EPS (TTM): -2.00
• Shares Outstanding: 295,722,260
• 10 Day Avg. Volume: 311,416
• 30 Day Avg. Volume: 838,420
• PEG Ratio: -0.37
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.36
• 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: €52.82
• Price Target Upside: 22.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Positive Factors

Financial Position

Renault’s €7.1bn net auto net financial position positively surprised, and now equals c.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.

Earnings Guidance

Guidance of adj EBIT and FCF reaching at least 7% and €2bn respectively is not far from consensus and gives little room for upgrades.

Regulatory Compliance

CO2 compliance was a bigger than feared overhang, impacting margins due to Renault's 18% EU share in light commercial vehicles.

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 Financial Statement Overview

Summary

Renault exhibits solid revenue growth and cash flow performance, although profitability metrics suggest room for improvement. The balance sheet remains stable with moderate leverage, but enhancing return on equity will be key to maximizing shareholder value. Overall, Renault is navigating its financial landscape with positive cash flow momentum, while addressing profitability challenges.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.23B	52.38B	46.39B	41.66B	43.47B
	Gross Profit
11.69B	10.90B	8.27B	6.87B	6.01B
	EBIT
2.58B	2.48B	2.60B	1.15B	-337.00M
	EBITDA
5.93B	6.39B	7.59B	4.80B	3.65B
	Net Income Common Stockholders
752.00M	2.20B	-338.00M	888.00M	-8.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.07B	20.20B	22.36B	22.82B	22.12B
	Total Assets
129.37B	121.91B	118.32B	113.74B	115.74B
	Total Debt
9.57B	65.08B	64.34B	61.96B	64.89B
	Net Debt
-12.97B	45.39B	42.57B	40.03B	43.20B
	Total Liabilities
98.26B	91.28B	88.78B	85.85B	90.40B
	Stockholders Equity
30.31B	29.75B	28.80B	27.32B	24.77B
Cash Flow		Free Cash Flow
4.11B	1.40B	929.00M	-277.00M	1.54B
	Operating Cash Flow
7.16B	4.46B	3.61B	2.41B	5.75B
	Investing Cash Flow
-2.04B	-2.23B	-3.24B	-1.62B	-4.23B
	Financing Cash Flow
-3.23B	-3.08B	-532.00M	-629.00M	5.59B

Renault Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0NQF		€12.45B	15.57	2.50%	5.12%	―	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
0MGR		€1.51B	10.39	-4.21%	6.50%	―	―
0HV8		€1.84B	12.56	2.80%	4.38%	―	―
0RH5		€2.09B	12.88	4.44%	4.88%	―	―
MGDDF		$26.34B	13.60	10.41%	3.83%	―	―
MLHK		€4.36B	161.78		0.05%	―	―