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Renold PLC (GB:RNO)
LSE:RNO

Renold plc (RNO) AI Stock Analysis

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GB

Renold plc

(LSE:RNO)

Rating:75Outperform
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 (RNO) vs. iShares MSCI United Kingdom ETF (EWC)

Renold plc Business Overview & Revenue Model

Company DescriptionRenold 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 MoneyRenold 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
75
Positive
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
68
Positive
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
80
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
239.50M241.40M247.10M195.20M165.30M189.40M
Gross Profit
102.20M158.90M27.10M18.20M8.10M14.90M
EBIT
28.20M29.40M24.70M16.20M6.90M13.30M
EBITDA
36.20M38.40M31.70M23.80M10.90M19.10M
Net Income Common Stockholders
14.50M17.10M11.80M10.20M4.60M3.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.40M17.80M19.30M10.50M19.90M15.60M
Total Assets
198.10M238.00M249.70M197.60M188.70M216.00M
Total Debt
33.30M57.80M69.30M36.30M53.70M69.30M
Net Debt
16.90M40.00M50.00M25.80M33.80M53.70M
Total Liabilities
190.30M187.80M210.60M190.60M203.40M216.40M
Stockholders Equity
5.10M50.20M39.10M7.00M-14.70M-400.00K
Cash FlowFree Cash Flow
20.30M22.00M5.30M12.50M21.60M-1.00M
Operating Cash Flow
31.70M32.20M13.70M17.80M24.70M8.20M
Investing Cash Flow
-36.00M-14.80M-22.90M-5.60M-2.90M-11.00M
Financing Cash Flow
5.10M-20.10M17.10M-20.40M-20.30M-2.70M

Renold plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price72.00
Price Trends
50DMA
52.21
Positive
100DMA
48.59
Positive
200DMA
50.33
Positive
Market Momentum
MACD
6.49
Positive
RSI
78.20
Negative
STOCH
25.00
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAVG
76
Outperform
£130.71M30.253.87%1.22%14.30%-25.58%
76
Outperform
£601.43M12.1614.06%5.67%-1.26%6.56%
GBRNO
75
Outperform
£163.06M10.0827.26%0.70%-6.48%
74
Outperform
£549.70M28.1816.39%1.76%3.13%24.54%
71
Outperform
£136.08M50.261.63%7.18%-28.05%
GBCGS
71
Outperform
£116.47M9.909.51%6.87%-10.79%-21.64%
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RNO
Renold plc
72.00
9.57
15.33%
GB:AVG
Avingtrans
395.00
14.52
3.82%
GB:CGS
Castings
275.00
-82.52
-23.08%
GB:GDWN
Goodwin
7,540.00
1,318.99
21.20%
GB:MPAC
Mpac Group PLC
490.00
-19.00
-3.73%
GB:MGAM
Morgan Advanced Materials
214.50
-81.03
-27.42%

Renold plc Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Renold plc Extends and Expands Banking Facilities to Support Strategic Growth
Positive
Apr 23, 2025

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.

Business Operations and StrategyFinancial Disclosures
Renold plc Reports Strong Financial Performance for FY25
Positive
Apr 15, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.