Renew Holdings plc (RNWH) AI Stock Analysis

• Market Cap: £547.76M
• Dividend Yield: 2.75%
• Average Volume (3M): 273.38K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.68
• Revenue Growth: 9.49%
• EPS Growth: -4.24%
• Country: UK
• Employees: 4,429
• Sector: Industrials
• Sector Strength: 66
• Industry: Engineering & Construction
• EPS (TTM): 0.53
• Shares Outstanding: 79,156,690
• 10 Day Avg. Volume: 311,826
• 30 Day Avg. Volume: 273,377
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.54
• Price to Cash Flow (P/CF): 11.10
• P/FCF Ratio: 0.00
• 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: 1,200.00p
• Price Target Upside: 81.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Renew Holdings plc demonstrates strong financial performance with efficient cost management and solid growth prospects. The stock's valuation is attractive, with a low P/E ratio and a decent dividend yield. However, technical indicators show bearish momentum, which poses a risk. Positive corporate events and insider confidence provide a supportive backdrop, but the technical weakness tempers the overall score.

Renew Holdings plc Business Overview & Revenue Model

Company Description

Renew Holdings plc (RNWH) is a UK-based engineering services company that operates primarily in the infrastructure, energy, and environmental sectors. The company specializes in providing multidisciplinary engineering services to support the maintenance and development of critical infrastructure. Its core services include civil engineering, mechanical and electrical engineering, and specialist building services, catering to both public and private sector clients.

How the Company Makes Money

Renew Holdings makes money through a revenue model that is primarily based on delivering engineering services projects to clients in regulated and non-regulated sectors. Key revenue streams include long-term service contracts and project-based work in areas such as rail, water, and energy infrastructure. The company benefits from significant partnerships and frameworks with government bodies and major corporations, allowing it to secure recurring revenue streams. Additionally, Renew Holdings strategically focuses on essential maintenance and renewal services, which are less susceptible to economic downturns, thereby ensuring stable income.

Renew Holdings plc Financial Statement Overview

Summary

Renew Holdings plc shows a commendable financial position with strong revenue and profit growth, efficient cost management, and prudent leverage usage. Despite a decline in Free Cash Flow, overall cash flow metrics are robust, positioning the company well for future growth and stability.

Income Statement

Renew Holdings plc demonstrates strong revenue growth with a 9.47% increase from 2023 to 2024, reflecting consistent business expansion. The Gross Profit Margin stands at a solid 14.04%, and the Net Profit Margin is 4.12%, indicating stable profit generation. EBIT and EBITDA margins are healthy at 6.06% and 7.94% respectively, showcasing operational efficiency and sound management of costs.

Balance Sheet

The company maintains a manageable Debt-to-Equity Ratio of 0.37, indicating prudent use of leverage. With Return on Equity at 20.14%, Renew Holdings displays strong profitability relative to shareholder equity. The Equity Ratio of 37.69% underscores financial stability with a robust equity base supporting total assets.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.07, reflecting healthy cash generation from operations. Although there is a decline in Free Cash Flow from the previous year, the Free Cash Flow to Net Income Ratio remains strong at 0.92, indicating effective cash management and reinvestment in growth opportunities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
995.64M	1.01B	921.55M	816.28M	775.64M	620.38M
	Gross Profit
136.44M	141.66M	135.05M	115.82M	102.72M	87.57M
	EBIT
58.25M	61.17M	58.97M	47.07M	41.28M	33.64M
	EBITDA
80.35M	80.10M	74.52M	67.19M	58.54M	48.68M
	Net Income Common Stockholders
44.33M	41.57M	43.38M	37.66M	30.46M	20.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.00M	80.22M	35.66M	27.56M	881.00K	13.40M
	Total Assets
294.34M	547.71M	449.63M	400.86M	374.12M	358.79M
	Total Debt
31.12M	76.58M	17.68M	21.86M	30.21M	28.52M
	Net Debt
22.12M	-3.64M	-17.98M	-5.69M	29.33M	15.12M
	Total Liabilities
212.22M	341.32M	270.24M	252.18M	249.30M	238.34M
	Stockholders Equity
82.13M	206.39M	179.40M	148.68M	124.82M	120.45M
Cash Flow		Free Cash Flow
50.69M	38.29M	48.63M	52.39M	35.20M	48.24M
	Operating Cash Flow
55.33M	44.44M	54.14M	57.44M	39.25M	52.00M
	Investing Cash Flow
-7.64M	-30.66M	-17.22M	-3.54M	-36.12M	-43.54M
	Financing Cash Flow
-22.58M	28.25M	-21.12M	-24.33M	-25.86M	-6.70M

Renew Holdings plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 662.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNWH, the sentiment is Neutral. The current price of 662 is below the 20-day moving average (MA) of 671.80, below the 50-day MA of 706.68, and below the 200-day MA of 950.37, indicating a neutral trend. The MACD of -6.16 indicates Negative momentum. The RSI at 51.37 is Neutral, neither overbought nor oversold. The STOCH value of 72.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RNWH.

Renew Holdings plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	78 Outperform	£347.55M	8.81	35.97%	4.37%	22.39%	179.53%
RNWH	74 Outperform	£547.76M	13.17	22.82%	2.75%	9.49%	-4.24%
MGNS	74 Outperform	£1.59B	12.01	21.67%	3.54%	10.41%	11.04%
KIE	67 Neutral	£555.54M	12.97	10.20%	3.97%	8.04%	6.94%
Sector *	62 Neutral	$8.06B	13.61	3.91%	3.11%	3.80%	-14.06%

Renew Holdings plc Corporate Events

Swedbank Robur Fonder AB Increases Stake in Renew Holdings PLC

Renew Holdings PLC, a UK-based company, has announced a change in its major holdings. Swedbank Robur Fonder AB has increased its voting rights in the company to 6.009599%, up from a previous position of 5.043162%. This acquisition of voting rights may influence the company’s decision-making processes and impact its strategic direction, potentially affecting stakeholders and market perception.

Octopus Investments Reduces Stake in Renew Holdings PLC

Renew Holdings PLC has reported a change in the voting rights held by Octopus Investments Limited, as the latter has reduced its stake in the company. As of February 19, 2025, Octopus Investments’ voting rights have decreased from 13.94% to 12.98%, reflecting a disposal of shares. This update can impact the company’s shareholder structure and potentially influence its future strategic decisions.

Swedbank Robur Fonder AB Increases Stake in Renew Holdings PLC

Renew Holdings PLC has announced a change in its voting rights, with Swedbank Robur Fonder AB increasing its holdings to 5.043162%. This acquisition marks a significant shift in the shareholder structure, potentially impacting the company’s governance and strategic decisions. The increased stake by Swedbank Robur Fonder AB reflects confidence in Renew Holdings’ market position and future prospects, possibly influencing other stakeholders’ perceptions about the company’s growth trajectory.

Renew Holdings Reports Increase in Major Shareholding by Swedbank Robur Fonder AB

Renew Holdings plc, a UK-based issuer, announced a change in major shareholdings with Swedbank Robur Fonder AB increasing their stake. The acquisition led to Swedbank Robur Fonder AB holding 4.461993% of the voting rights, up from a previous 3.157632%, reflecting an enhanced influence in the company’s decision-making process.

Renew Holdings plc Announces Change in Major Shareholdings

Renew Holdings plc announced a change in major holdings due to an acquisition or disposal of voting rights by Swedbank Robur Fonder AB. The change, effective as of January 31, 2025, results in Swedbank Robur Fonder holding 3.157632% of the voting rights, equating to 2,499,477 shares. This adjustment in holdings could influence the company’s decision-making processes and strategic direction, potentially impacting its market position and stakeholder relationships.

Renew Holdings Announces Directorate Change Amidst Continued Focus on UK Infrastructure

Renew Holdings plc announced the retirement of Andries Liebenberg from his position as Executive Director (Rail), recognizing his significant contributions to the company’s growth. This change in the directorate is part of the company’s ongoing efforts to support the maintenance and renewal of critical UK infrastructure, which is a core focus of its operations.

Renew Holdings Director Increases Stake in Strategic Move

Renew Holdings plc announced that Liz Barber, a Non-Executive Director, purchased 2,830 ordinary shares of the company, representing 0.004% of the issued share capital. This transaction highlights ongoing insider confidence in the company’s market positioning and operations, reinforcing its commitment to maintaining and enhancing infrastructure through strategic investments.

Renew Holdings plc Announces Successful AGM Outcomes

Renew Holdings plc announced that all resolutions were passed at its recent Annual General Meeting, reinforcing its stable governance and continued focus on supporting critical UK infrastructure. This development underscores the company’s robust operational framework, which benefits from long-term visibility and committed funding, potentially strengthening its position in regulated markets.

Renew Holdings Chairman Increases Shareholding

Renew Holdings plc disclosed that its Non-Executive Chairman, David Brown, has acquired 2,822 ordinary shares at 705p each, slightly increasing his shareholding in the company to 15,742 shares, representing 0.02% of the issued share capital. This transaction reflects continued confidence in the company’s performance and steady growth within the engineering services sector, maintaining its crucial role in the upkeep of vital infrastructure, which is supported by non-discretionary spending and long-term funding commitments.

Renew Holdings Director Acquires Additional Shares, Signaling Confidence in Company’s Future

Stephanie Hazell, a Non-Executive Director of Renew Holdings plc, has purchased 2,836 shares at a price of 705p per share, increasing her holding to 10,704 shares, which represents 0.01% of the company’s issued share capital. This move by a member of the board reflects confidence in the company’s stable position in the engineering services sector, particularly in regulated markets with consistent funding. Such investments can positively impact stakeholder perception and indicate a strong outlook for the company’s future operations.

Director’s Spouse Purchases Shares in Renew Holdings, Signaling Confidence

Renew Holdings announced that Dina Dasani, wife of Non-Executive Director Shatish Dasani, purchased 3,000 ordinary shares at 712.1p each, bringing their total shareholding to 24,000 shares, or 0.03% of the company. This transaction reflects internal confidence in the company’s operations and can potentially enhance stakeholder trust by demonstrating a commitment from the leadership, aligning their interests with those of investors.

Renew Holdings Faces Rail Sector Challenges While Environmental Sector Surges

Renew Holdings plc has reported a trading update indicating challenges in its Rail sector due to the slow start of the Control Period 7. This has led to expectations of full-year trading falling below market expectations, although adjusted operating profit is anticipated to surpass the previous year’s figures. Despite these challenges, the Environmental segment, particularly in Water, is performing well, with promising momentum as it approaches the new control period AMP8. The integration of recent acquisitions is progressing as planned, and the company’s order book has reached a record level, ensuring long-term visibility.