Renold plc (RNO) AI Stock Analysis

• Market Cap: £163.06M
• Dividend Yield: 0.7%
• Average Volume (3M): 737.00K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.30
• Revenue Growth: -6.48%
• EPS Growth: N/A
• Country: UK
• Employees: 1,824
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 225,417,740
• 10 Day Avg. Volume: 430,939
• 30 Day Avg. Volume: 737,004
• PEG Ratio: -0.51
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.40
• 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

• Rating: 75 Outperform
• Price Target: ―

Renold plc is well-positioned with strong financials and an attractive valuation. While technical indicators are mixed, recent corporate events and solid profitability suggest potential for growth. Maintaining strong cash flow and managing leverage effectively will be crucial to continue its positive trajectory.

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 shows strong profitability with stable profit margins and a robust cash flow position. Despite some revenue fluctuations, the balance sheet is improving, and financial stability is on the rise.

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
239.50M	241.40M	247.10M	195.20M	165.30M	189.40M
	Gross Profit
102.20M	158.90M	27.10M	18.20M	8.10M	14.90M
	EBIT
28.20M	29.40M	24.70M	16.20M	6.90M	13.30M
	EBITDA
36.20M	38.40M	31.70M	23.80M	10.90M	19.10M
	Net Income Common Stockholders
14.50M	17.10M	11.80M	10.20M	4.60M	3.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.40M	17.80M	19.30M	10.50M	19.90M	15.60M
	Total Assets
198.10M	238.00M	249.70M	197.60M	188.70M	216.00M
	Total Debt
33.30M	57.80M	69.30M	36.30M	53.70M	69.30M
	Net Debt
16.90M	40.00M	50.00M	25.80M	33.80M	53.70M
	Total Liabilities
190.30M	187.80M	210.60M	190.60M	203.40M	216.40M
	Stockholders Equity
5.10M	50.20M	39.10M	7.00M	-14.70M	-400.00K
Cash Flow		Free Cash Flow
20.30M	22.00M	5.30M	12.50M	21.60M	-1.00M
	Operating Cash Flow
31.70M	32.20M	13.70M	17.80M	24.70M	8.20M
	Investing Cash Flow
-36.00M	-14.80M	-22.90M	-5.60M	-2.90M	-11.00M
	Financing Cash Flow
5.10M	-20.10M	17.10M	-20.40M	-20.30M	-2.70M

Renold plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 72 is above the 20-day moving average (MA) of 64.64, above the 50-day MA of 52.21, and above the 200-day MA of 50.33, indicating a bullish trend. The MACD of 6.49 indicates Positive momentum. The RSI at 78.20 is Negative, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, 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
AVG	76 Outperform	£130.71M	30.25	3.87%	1.22%	14.30%	-25.58%
MGAM	76 Outperform	£601.43M	12.16	14.06%	5.67%	-1.26%	6.56%
RNO	75 Outperform	£163.06M	10.08	27.26%	0.70%	-6.48%	―
GDWN	74 Outperform	£549.70M	28.18	16.39%	1.76%	3.13%	24.54%
MPAC	71 Outperform	£136.08M	50.26	1.63%	―	7.18%	-28.05%
CGS	71 Outperform	£116.47M	9.90	9.51%	6.87%	-10.79%	-21.64%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%

Renold plc Corporate Events

Renold plc Extends and Expands Banking Facilities to Support Strategic Growth

Renold plc has successfully refinanced its core banking facilities, extending them until May 2028 and increasing its multi-currency revolving credit facility to £105 million. This extension and increase, along with an uncommitted £25 million accordion, will support Renold’s acquisition program under its STEP2 strategy, providing a stable financial platform for its strategic development.

Spark’s Take on GB:RNO Stock

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

Renold plc presents a strong investment opportunity with robust financial performance and attractive valuation metrics. Despite mixed technical signals, the company’s solid profitability, improved financial stability, and strong cash flow suggest potential for growth. The positive corporate event further supports a favorable outlook, highlighting the company’s resilience and effective strategy execution.

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

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.