Renew Holdings plc (RNWH) AI Stock Analysis

• Market Cap: £657.79M
• Dividend Yield: 3.21%
• Average Volume (3M): 153.41K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.96
• Revenue Growth: 3.23%
• EPS Growth: 2.00%
• Country: UK
• Employees: 4,429
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 0.28
• Shares Outstanding: 79,156,690
• 10 Day Avg. Volume: 134,052
• 30 Day Avg. Volume: 153,409
• PEG Ratio: 0.52
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.58
• 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: £1,200.00
• Price Target Upside: 43.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• 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 Business Overview & Revenue Model

Company Description

Renew 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 Money

Renew 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

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.01B	921.55M	816.28M	775.64M	620.38M
	Gross Profit
141.66M	135.05M	115.82M	102.72M	87.57M
	EBIT
61.17M	58.97M	47.07M	41.28M	33.64M
	EBITDA
80.10M	74.52M	67.19M	58.54M	48.68M
	Net Income Common Stockholders
41.57M	43.38M	37.66M	30.46M	20.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.22M	35.66M	27.56M	881.00K	13.40M
	Total Assets
547.71M	449.63M	400.86M	374.12M	358.79M
	Total Debt
76.58M	17.68M	21.86M	30.21M	28.52M
	Net Debt
-3.64M	-17.98M	-5.69M	29.33M	15.12M
	Total Liabilities
341.32M	270.24M	252.18M	249.30M	238.34M
	Stockholders Equity
206.39M	179.40M	148.68M	124.82M	120.45M
Cash Flow		Free Cash Flow
38.29M	48.63M	52.39M	35.20M	48.24M
	Operating Cash Flow
44.44M	54.14M	57.44M	39.25M	52.00M
	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 Price: 834.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	79 Outperform	£351.08M	11.40	13.45%	3.11%	-6.07%	41.18%
KLR	79 Outperform	£1.06B	7.68	25.66%	4.38%	0.70%	60.51%
RNWH	78 Outperform	£657.79M	14.53	22.62%	3.21%	3.23%	2.00%
KIE	77 Outperform	£730.51M	17.14	10.20%	2.33%	8.04%	6.94%
GFRD	77 Outperform	£401.53M	10.20	35.97%	4.14%	22.39%	179.53%
MGNS	75 Outperform	£1.78B	13.52	21.67%	4.73%	10.41%	11.04%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Renew Holdings plc Corporate Events

Renew Holdings Reports Strong Revenue Growth and Strategic Progress

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.

Renew Holdings Reports Steady H1 2025 Performance Amid Strategic Growth

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.