Renold plc (RNO) AI Stock Analysis

• Market Cap: £161.37M
• Dividend Yield: 0.62%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.13
• 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: 225,417,740
• 10 Day Avg. Volume: 685,565
• 30 Day Avg. Volume: 1,672,356
• 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: £89.00
• Price Target Upside: 9.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: 89.00p ▲(9.88% 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: 81.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 is above the 20-day moving average (MA) of 80.89, above the 50-day MA of 80.66, and above the 200-day MA of 61.17, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 12.76 is Positive, 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
GDWN	72 Outperform	983.76M	40.04	17.78%	1.58%	14.88%	45.73%
AVG	72 Outperform	155.52M	23.71	―	0.86%	14.49%	76.33%
CGS	71 Outperform	113.26M	27.14	―	7.06%	-21.14%	-75.01%
RNO	70 Outperform	£161.37M	10.66	25.68%	0.62%	1.53%	-7.99%
MGAM	66 Neutral	602.44M	21.87	14.22%	4.14%	-7.30%	-59.71%
MPAC	64 Neutral	96.99M	-7.76	1.30%	―	21.17%	-237.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.