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Renew Holdings plc (GB:RNWH)
:RNWH
UK Market

Renew Holdings plc (RNWH) AI Stock Analysis

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GB

Renew Holdings plc

(LSE:RNWH)

Rating:78Outperform
Price Target:
904.00p
▲(8.39%Upside)
Renew Holdings plc is positioned well with strong financial growth, positive technical indicators, and strategic corporate developments. While technical indicators suggest caution due to overbought conditions, the company's sound financial health and strategic progress support a favorable outlook.

Renew Holdings plc (RNWH) vs. iShares MSCI United Kingdom ETF (EWC)

Renew Holdings plc Business Overview & Revenue Model

Company DescriptionRenew Holdings plc operates as a contractor in the field of engineering services and specialist building in the United Kingdom. The company provides services to the energy, environmental, rail, and infrastructure markets. It offers operational support and asset care; critical planned and reactive maintenance and renewals; civil, mechanical, and electrical engineering services; geotechnical and earthworks; plant, power, and signaling renewals; 24/7 emergency services; asset renewal and refurbishment; tunnel and shaft refurbishment, fencing, and devegetation; and in-house design services, as well as wireless telecoms installations; 3G, 4G, 5G, and Wi-Fi technologies; temporary sites and special events; and maintenance and decommissioning services. The company also provides nuclear decommissioning and decontamination; and specialist fabrication and manufacturing services. In addition, it offers flood risk management programs; clean and wastewater rehabilitation infrastructure; and port, harbor, and sea defenses, as well as maintains strategic water mains and mains drainage. Further, the company provides soil and groundwater remediation; in-house technology and environmental engineering resources; and specialist restoration and convention, as well as designs remediation and ground engineering solutions. Additionally, it undertakes residential refurbishment, and research and laboratory schemes; temporary structural engineering works; sale of land, and the leasing and sub-leasing of properties; and refurbishment of private residential assets, as well as the construction, renovation, and refurbishment of science facilities. The company was formerly known as Montpellier Group Plc and changed its name to Renew Holdings plc in December 2005. Renew Holdings plc was founded in 1786 and is headquartered in Leeds, the United Kingdom.
How the Company Makes MoneyRenew Holdings makes money primarily through its Engineering Services sector, which accounts for a significant portion of its revenue. The company secures contracts with large governmental and private clients to provide essential maintenance and renewal services for critical infrastructure, such as rail networks, water systems, and energy facilities. Their revenue is generated from long-term contracts, often involving recurring maintenance work, which ensures a steady income stream. Additionally, Renew Holdings benefits from strategic partnerships with key organizations in the infrastructure sectors, allowing them to leverage industry expertise and expand their service offerings. The focus on essential infrastructure projects ensures a stable demand for their services, contributing to their financial performance.

Renew Holdings plc Financial Statement Overview

Summary
Renew Holdings plc exhibits strong financial position with solid revenue growth and profit margins. The company has efficient cost management and prudent leverage usage. While cash flow metrics show robust performance, there is room for improvement in free cash flow growth. Overall, the financial health is sound, positioning the company well for future growth and stability.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
1.01B921.55M816.28M775.64M620.38M
Gross Profit
141.66M135.05M115.82M102.72M87.57M
EBIT
61.17M58.97M47.07M41.28M33.64M
EBITDA
80.10M74.52M67.19M58.54M48.68M
Net Income Common Stockholders
41.57M43.38M37.66M30.46M20.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
80.22M35.66M27.56M881.00K13.40M
Total Assets
547.71M449.63M400.86M374.12M358.79M
Total Debt
76.58M17.68M21.86M30.21M28.52M
Net Debt
-3.64M-17.98M-5.69M29.33M15.12M
Total Liabilities
341.32M270.24M252.18M249.30M238.34M
Stockholders Equity
206.39M179.40M148.68M124.82M120.45M
Cash FlowFree Cash Flow
38.29M48.63M52.39M35.20M48.24M
Operating Cash Flow
44.44M54.14M57.44M39.25M52.00M
Investing Cash Flow
-30.66M-17.22M-3.54M-36.12M-43.54M
Financing Cash Flow
28.25M-21.12M-24.33M-25.86M-6.70M

Renew Holdings plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price834.00
Price Trends
50DMA
752.77
Positive
100DMA
729.02
Positive
200DMA
871.11
Negative
Market Momentum
MACD
17.99
Positive
RSI
66.10
Neutral
STOCH
59.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNWH, the sentiment is Positive. The current price of 834 is above the 20-day moving average (MA) of 822.76, above the 50-day MA of 752.77, and below the 200-day MA of 871.11, indicating a neutral trend. The MACD of 17.99 indicates Positive momentum. The RSI at 66.10 is Neutral, neither overbought nor oversold. The STOCH value of 59.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RNWH.

Renew Holdings 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
79
Outperform
£351.08M11.4013.45%3.11%-6.07%41.18%
GBKLR
79
Outperform
£1.06B7.6825.66%4.38%0.70%60.51%
78
Outperform
£657.79M14.5322.62%3.21%3.23%2.00%
GBKIE
77
Outperform
£730.51M17.1410.20%2.33%8.04%6.94%
77
Outperform
£401.53M10.2035.97%4.14%22.39%179.53%
75
Outperform
£1.78B13.5221.67%4.73%10.41%11.04%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RNWH
Renew Holdings plc
831.00
-215.67
-20.61%
GB:KIE
Kier Group plc
176.20
43.98
33.26%
GB:COST
Costain
129.00
50.83
65.02%
GB:GFRD
Galliford Try
409.50
188.66
85.43%
GB:MGNS
Morgan Sindall
3,850.00
1,366.25
55.01%
GB:KLR
Keller Group plc
1,514.00
333.62
28.26%

Renew Holdings plc Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Renew Holdings Reports Strong Revenue Growth and Strategic Progress
Positive
May 13, 2025

Renew Holdings plc reported a 13% increase in group revenue to £569.3 million for the first half of 2025, driven by diversified market exposure and demand for its mission-critical services. Despite challenges in the Rail sector, the company maintained its adjusted operating profit and expanded its order book to a record £908 million. The acquisition of Full Circle has strengthened its position in the renewable energy market, and the company remains confident in its growth strategy, supported by a robust M&A pipeline and a strong balance sheet.

The most recent analyst rating on (GB:RNWH) stock is a Buy with a £1250.00 price target. To see the full list of analyst forecasts on Renew Holdings plc stock, see the GB:RNWH Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Renew Holdings Reports Steady H1 2025 Performance Amid Strategic Growth
Positive
Apr 1, 2025

Renew Holdings plc has provided a trading update for the first half of 2025, indicating that performance has aligned with revised expectations. The Rail sector faced delays due to a slow start to the new control period, but this was mitigated by increased demand for maintenance services. In the Environmental sector, the company is well-positioned for the new control period, AMP8, with significant framework positions secured. The Energy and Infrastructure sectors remain stable, and recent acquisitions are integrating well. The company’s order book is at record levels, and it remains confident in meeting full-year expectations with an anticipated increase in operating profit.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.