Renold plc (RNO) AI Stock Analysis

• Market Cap: £164.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.06
• Revenue Growth: 1.53%
• EPS Growth: -7.99%
• Country: UK
• Employees: 1,824
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 226,809,980
• 10 Day Avg. Volume: 2,234,782
• 30 Day Avg. Volume: 1,467,345
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 89.00p ▲(8.80% Upside)

Renold plc's overall stock score is driven by its solid financial performance and attractive valuation, despite challenges in cash flow generation and leverage. The technical indicators support a stable outlook, with no immediate risks or opportunities highlighted by recent corporate events or earnings calls.

Renold plc Business Overview & Revenue Model

Company Description

Renold plc (RNO) is a leading global manufacturer and supplier of industrial chains, power transmission products, and associated services. Established in 1880 and headquartered in Manchester, UK, Renold operates in various sectors including manufacturing, mining, agriculture, and construction. The company’s core products include roller chains, block chains, couplings, and high-performance gears, which are essential for the efficient operation of machinery across multiple industries.

How the Company Makes Money

Renold plc generates revenue primarily through the sale of its industrial chains and power transmission products. The company has a diversified revenue model comprising direct sales to customers, distribution partnerships, and international exports. Key revenue streams include the manufacturing and sale of standard and bespoke chain solutions, as well as aftermarket services such as maintenance and repair. Additionally, Renold benefits from strategic partnerships with distributors and suppliers, which enhance its market reach and customer base. Fluctuations in demand across various industrial sectors and regions, along with the company’s ability to innovate and offer specialized products, significantly contribute to its earnings.

Renold plc Financial Statement Overview

Summary

Renold plc demonstrates solid financial performance with consistent revenue growth and strong profitability margins. However, challenges exist in cash flow generation and leverage management, as indicated by a significant decrease in free cash flow and a moderate debt-to-equity ratio.

Income Statement

Renold plc has shown consistent revenue growth over the years, with a recent growth rate of 2.34%. The company maintains a strong gross profit margin of 67.28% and a healthy EBIT margin of 10.49%. However, the net profit margin has slightly decreased to 6.16%, indicating some pressure on net profitability. Overall, the income statement reflects a stable and growing revenue base with solid profitability metrics.

Balance Sheet

The company's debt-to-equity ratio stands at 1.28, indicating a moderate level of leverage. The return on equity is 22.40%, which is a positive indicator of profitability relative to shareholder equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. The balance sheet shows a stable financial position but highlights potential risks associated with leverage.

Cash Flow

Renold plc's free cash flow has decreased significantly by 43.35%, which is a concern. The operating cash flow to net income ratio is 0.34, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.46, suggesting that cash flow generation is not as strong as net income figures might imply. Overall, the cash flow statement indicates challenges in maintaining strong cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.50M	245.10M	241.40M	247.10M	195.20M	165.30M
Gross Profit	102.20M	164.90M	158.90M	27.10M	18.20M	8.10M
EBITDA	36.20M	37.90M	38.40M	31.70M	23.80M	10.90M
Net Income	14.50M	15.10M	17.10M	11.80M	10.20M	4.60M
Balance Sheet
Total Assets	272.60M	278.70M	238.00M	249.70M	197.60M	188.70M
Cash, Cash Equivalents and Short-Term Investments	20.70M	22.00M	17.80M	19.30M	10.50M	19.90M
Total Debt	81.90M	86.10M	57.80M	69.30M	36.30M	53.70M
Total Liabilities	218.00M	211.30M	187.80M	210.60M	190.60M	203.40M
Stockholders Equity	54.60M	67.40M	50.20M	39.10M	7.00M	-14.70M
Cash Flow
Free Cash Flow	20.30M	11.50M	22.00M	5.30M	12.50M	21.60M
Operating Cash Flow	31.70M	25.00M	32.20M	13.70M	17.80M	24.70M
Investing Cash Flow	-36.00M	-35.40M	-14.80M	-22.90M	-5.60M	-2.90M
Financing Cash Flow	5.10M	15.80M	-20.10M	17.10M	-20.40M	-20.30M

Renold plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 81.8 is above the 20-day moving average (MA) of 81.56, above the 50-day MA of 81.15, and above the 200-day MA of 65.36, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
CGS	71 Outperform	£104.34M	25.00	3.19%	7.67%	-21.14%	-75.01%
RNO	70 Outperform	£164.10M	10.76	25.68%	―	1.53%	-7.99%
GDWN	66 Neutral	£1.70B	69.38	18.87%	0.60%	14.88%	45.73%
AVG	65 Neutral	£159.03M	24.22	5.87%	1.03%	14.49%	76.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGAM	60 Neutral	£559.38M	20.35	8.04%	5.18%	-7.30%	-59.71%
MPAC	56 Neutral	£106.76M	―	-17.46%	―	21.17%	-237.25%

Renold plc Corporate Events

Renold plc Acquisition by MPE Bid Co Nears Completion

Renold plc has announced the satisfaction of regulatory conditions for its acquisition by MPE Bid Co, a corporation controlled by MPE Management. The acquisition, structured as a court-sanctioned scheme of arrangement, is set to be completed by 29 October 2025, following a court hearing scheduled for 27 October 2025. This acquisition is expected to impact Renold’s operations by transferring its ordinary shares to Endurance PT Technology Buyer Corporation, a member of the Wider Bidco Group, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (GB:RNO) stock is a Buy with a £89.00 price target. To see the full list of analyst forecasts on Renold plc stock, see the GB:RNO Stock Forecast page.

Renold plc Successfully Passes All Resolutions at 2025 AGM

Renold plc announced that all resolutions proposed at its 2025 annual general meeting were successfully passed. This outcome reflects the company’s stable governance and may positively influence its operations and stakeholder confidence, reinforcing its position in the industrial chain and power transmission market.

The most recent analyst rating on (GB:RNO) stock is a Buy with a £89.00 price target. To see the full list of analyst forecasts on Renold plc stock, see the GB:RNO Stock Forecast page.

Renold plc Releases 2025 Annual Report and AGM Notice

Renold plc has published its 2025 Annual Report and Accounts, along with the notice for its Annual General Meeting (AGM) scheduled for 30 September 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, reinforcing its position in the industrial chains and power transmission products market.

Renold plc Approves Cash Acquisition by MPE Bid Co

Renold plc announced the approval of a recommended cash acquisition by MPE Bid Co, a corporation controlled by MPE Mgt. Co., LLC, through a court-sanctioned scheme of arrangement. The acquisition, which involves the re-registration of Renold as a private company and the cancellation of its preference stock, received the necessary shareholder approvals at the Court and General Meetings. This move is expected to impact Renold’s market positioning by transitioning it from a public to a private entity, potentially affecting its stakeholders and operational strategies.