Renold plc (RNO) AI Stock Analysis

• Market Cap: £106.30M
• Dividend Yield: 1.06%
• Average Volume (3M): 896.17K
• Price to Earnings (P/E): 6.6
• 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: 871,131
• 30 Day Avg. Volume: 896,170
• 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's score reflects solid profitability and cash flow, coupled with a compelling valuation. Technical analysis suggests caution due to mixed signals. The recent strong financial performance report bolsters the outlook, positioning the stock as a balanced investment opportunity with growth potential.

Renold plc Business Overview & Revenue Model

Company Description

Renold plc manufactures and sells high precision engineered power transmission products in the United Kingdom, rest of Europe, the United States, Australasia, China, India, and internationally. The company operates through two segments, Chain and Torque Transmission. It offers standard, welded steel, and draw bench conveyor chains, as well as conveyor and trident chains for theme parks; and bucket elevator, escalator, heavy duty drag, and waste water treatment chains, as well as standard attachments and screen chains. The company also provides flexible, jaw, standard, pin and bush, marine propulsion, generator set, and ajax couplings; freewheel clutches for use in overrunning, indexing, and backstopping applications; and worm gears, bevel, helical gears, transit escalator drive solutions, custom gearing solutions, carter gear refurbishment, and oil condition monitoring systems. In addition, it offers leaf chains for materials handling applications; processing equipment and vibratory drives, such as shakers, QE vibrators, rotary electric vibrators, vibratory fill stations, vibratory conveyors, vibratory feeders, and bulk bag unloaders; and chain accessories, including sprockets, chain wear guides, chain pin extractors, and chain tensioners. Further, the company provides transmission chains, which include general transmission, low maintenance, abrasion resistant, corrosion resistant, standard attachment, and polymer block chains. It serves clients in transportation, mining and quarrying, materials handling, manufactured products, environmental, food and drink, energy, and construction machinery, as well as agriculture, forestry, and fishing sectors through original equipment manufacturers, and distributors. The company was founded in 1864 and is headquartered in Manchester, the United Kingdom.

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: 46.50
• 50DMA: Positive
• 100DMA: Positive
• 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 46.5 is above the 20-day moving average (MA) of 41.86, above the 50-day MA of 42.17, and below the 200-day MA of 50.17, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 83.07 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	£6.14B	20.63	13.99%	2.38%	6.10%	33.05%
RNO	73 Outperform	£106.30M	6.57	27.26%	1.06%	-6.48%	―
SPX	71 Outperform	£4.42B	23.15	16.16%	2.69%	-1.03%	4.06%
IMI	69 Neutral	£4.39B	18.06	23.50%	1.68%	0.64%	4.92%
WEIR	69 Neutral	£5.67B	18.15	17.83%	1.76%	-4.95%	36.95%
VCT	68 Neutral	£684.50M	39.79	3.58%	7.39%	-5.21%	-72.13%
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%

Renold plc Corporate Events

Renold plc Reports Strong Financial Performance for FY25

Renold plc has reported a strong trading update for the year ending March 31, 2025, with adjusted operating profit and EPS exceeding market expectations for the third consecutive year. The company achieved a revenue of approximately £245.1 million, marking a 3.8% increase at constant exchange rates, and improved its operating margin to around 13%. Despite challenges from international trade policies, Renold’s global manufacturing footprint and strong customer relationships position it well to handle potential tariff impacts.

Spark’s Take on GB:RNO Stock

According to Spark, TipRanks’ AI Analyst, GB:RNO is a Outperform.

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.

To see Spark’s full report on GB:RNO stock, click here.

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.