Renew Holdings plc (RNWH) AI Stock Analysis

• Market Cap: £708.45M
• Dividend Yield: 2.16%
• Average Volume (3M): 219.18K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.27
• Revenue Growth: 7.13%
• EPS Growth: 17.31%
• Country: UK
• Employees: 4,429
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.31
• Shares Outstanding: 79,156,690
• 10 Day Avg. Volume: 271,761
• 30 Day Avg. Volume: 219,179
• PEG Ratio: 0.77
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 12.06
• 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: £1,267.50
• Price Target Upside: 41.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 1,003.00p ▲(12.07% Upside)

Renew Holdings plc demonstrates strong financial performance with consistent revenue growth and solid cash management, which are the most significant factors contributing to the score. The technical analysis indicates some short-term weakness, but potential for a rebound exists. The valuation is reasonable, suggesting the stock is fairly valued with a moderate dividend yield. The absence of earnings call and corporate events data did not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and successful market positioning, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling investment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management, reducing risk and enhancing the company's ability to fund future growth.

Negative Factors

Asset Decrease

A decrease in total assets could limit the company's ability to leverage its resources for growth, potentially impacting long-term strategic initiatives.

Margin Pressure

Lower net profit margins can constrain profitability, affecting the company's ability to reinvest in business operations and sustain competitive advantages.

Technical Weakness

While primarily a short-term indicator, persistent technical weakness may reflect broader market concerns, potentially affecting investor confidence.

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 generates revenue through its comprehensive suite of engineering and asset management services. Key revenue streams include long-term contracts in infrastructure maintenance, project-based work in engineering services, and consultancy fees for environmental management. The company has established significant partnerships with government bodies and private sector clients, which contribute to a stable income flow. Additionally, Renew’s focus on sustainable practices and compliance with regulatory requirements enhances its competitive edge, leading to ongoing contract renewals and new project opportunities.

Renew Holdings plc Financial Statement Overview

Summary

Renew Holdings plc exhibits a strong financial position with consistent revenue growth, solid profitability, and effective cash management. The company maintains a low leverage ratio, ensuring financial stability. While the balance sheet shows a slight decrease in total assets, the overall financial health is robust, positioning the company well for future opportunities in the engineering and construction industry.

Income Statement

Renew Holdings plc has demonstrated consistent revenue growth with a 5.17% increase in the latest year, indicating strong demand for its services. The company maintains healthy margins with a gross profit margin of approximately 14.1% and a net profit margin of 4.12%. The EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and profitability.

Balance Sheet

The balance sheet of Renew Holdings plc is solid with a low debt-to-equity ratio of 0.115, indicating prudent financial management and low leverage. The return on equity is strong at 20.21%, showcasing effective use of shareholder funds. The equity ratio stands at 45.45%, suggesting a stable financial structure. However, the total assets have slightly decreased, which could be a point of concern if it continues.

Cash Flow

The cash flow statement reflects robust free cash flow growth of 35.48%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating efficient conversion of income to cash. The free cash flow to net income ratio is also strong, suggesting good cash management. Overall, the cash flow position is healthy and supports future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.08B	1.01B	921.55M	816.28M	775.64M
Gross Profit	156.80M	152.35M	141.66M	135.05M	115.82M	102.72M
EBITDA	86.05M	86.33M	80.10M	75.16M	67.19M	58.54M
Net Income	48.81M	48.81M	41.57M	43.38M	37.66M	30.46M
Balance Sheet
Total Assets	530.65M	530.65M	547.71M	449.63M	400.86M	374.12M
Cash, Cash Equivalents and Short-Term Investments	6.22M	6.22M	80.22M	35.66M	27.56M	881.00K
Total Debt	27.73M	27.73M	76.58M	17.68M	21.86M	30.21M
Total Liabilities	289.51M	289.51M	341.32M	270.24M	252.18M	249.30M
Stockholders Equity	241.14M	241.14M	206.39M	179.40M	148.68M	124.82M
Cash Flow
Free Cash Flow	52.96M	53.16M	38.29M	48.63M	52.39M	35.20M
Operating Cash Flow	58.82M	59.02M	44.44M	54.14M	57.44M	39.25M
Investing Cash Flow	-51.93M	-52.13M	-30.66M	-17.22M	-3.54M	-36.12M
Financing Cash Flow	-78.35M	-78.35M	28.25M	-21.12M	-24.33M	-25.86M

Renew Holdings plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 895.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 895 is below the 20-day moving average (MA) of 908.15, below the 50-day MA of 920.24, and above the 200-day MA of 822.05, indicating a neutral trend. The MACD of -8.91 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 25.52 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
KLR	80 Outperform	£1.14B	8.42	24.69%	3.13%	-1.17%	12.31%
MGNS	78 Outperform	£2.21B	14.46	24.19%	2.49%	6.93%	21.50%
COST	78 Outperform	£421.94M	13.53	13.21%	1.90%	-12.98%	5.51%
KIE	74 Outperform	£937.82M	17.49	10.87%	3.22%	4.40%	31.59%
RNWH	73 Outperform	£708.45M	14.51	19.85%	2.16%	7.13%	17.31%
GFRD	71 Outperform	£507.94M	15.51	27.48%	3.63%	5.78%	-6.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Renew Holdings plc Corporate Events

Renew Holdings Secures Enhanced Revolving Credit Facility

Renew Holdings plc has successfully refinanced its Revolving Credit Facility, increasing it from £120 million to £140 million with improved terms and an extended maturity until October 2029. This move demonstrates the confidence of its banking partners in the company’s resilient business model and growth prospects, providing Renew with the financial resources to pursue both organic and inorganic growth strategies.

The most recent analyst rating on (GB:RNWH) stock is a Buy with a £1017.00 price target. To see the full list of analyst forecasts on Renew Holdings plc stock, see the GB:RNWH Stock Forecast page.

Renew Holdings Expands into Overhead Line Market with Emerald Power Acquisition

Renew Holdings plc has announced the acquisition of Emerald Power Ltd, a specialist in overhead line maintenance and repair, for up to £12.3 million. This strategic acquisition allows Renew to expand into the fast-growing overhead line market, enhancing its position in the regulated electricity distribution sector. The acquisition is expected to be immediately earnings enhancing and aligns with the significant investment in the UK electricity sector aimed at decarbonizing the grid by 2030.

The most recent analyst rating on (GB:RNWH) stock is a Buy with a £1017.00 price target. To see the full list of analyst forecasts on Renew Holdings plc stock, see the GB:RNWH Stock Forecast page.

Renew Holdings Achieves Record Financial Performance and Strong Market Positioning

Renew Holdings plc announced that its full-year performance for the year ending September 30, 2025, aligns with market expectations, achieving record revenues and operating profit. The company ended the year with a strong balance sheet and a modest net cash position, exceeding market expectations, which provides flexibility for potential acquisitions. Renew has diversified its market and service offerings, positioning itself to leverage long-term growth drivers and maintain a record order book, instilling confidence in future performance.

The most recent analyst rating on (GB:RNWH) stock is a Buy with a £872.00 price target. To see the full list of analyst forecasts on Renew Holdings plc stock, see the GB:RNWH Stock Forecast page.