Renew Holdings plc (RNWH) AI Stock Analysis

• Market Cap: £739.32M
• Dividend Yield: 2.11%
• Average Volume (3M): 219.18K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.25
• Revenue Growth: 3.23%
• EPS Growth: 2.00%
• Country: UK
• Employees: 4,429
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.28
• Shares Outstanding: 79,156,690
• 10 Day Avg. Volume: 271,761
• 30 Day Avg. Volume: 219,179
• PEG Ratio: -5.51
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 21.74
• 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: £1,283.33
• Price Target Upside: 40.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 1,017.00p ▲(11.39% Upside)

Renew Holdings plc exhibits strong financial performance and positive technical indicators, which are the most significant factors contributing to the stock's score. The valuation is reasonable, providing a balanced investment opportunity. The absence of earnings call data and corporate events does not impact the overall assessment.

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 demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and prudent leverage usage. The company maintains a solid financial position with healthy cash generation, although there is room for improvement in free cash flow growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.01B	921.55M	816.28M	775.64M	620.38M
Gross Profit	144.29M	141.66M	135.05M	115.82M	102.72M	87.57M
EBITDA	87.07M	80.10M	75.16M	67.19M	58.54M	48.68M
Net Income	45.26M	41.57M	43.38M	37.66M	30.46M	20.75M
Balance Sheet
Total Assets	531.34M	547.71M	449.63M	400.86M	374.12M	358.79M
Cash, Cash Equivalents and Short-Term Investments	8.21M	80.22M	35.66M	27.56M	881.00K	13.40M
Total Debt	44.92M	76.58M	17.68M	21.86M	30.21M	28.52M
Total Liabilities	309.99M	341.32M	270.24M	252.18M	249.30M	238.34M
Stockholders Equity	221.35M	206.39M	179.40M	148.68M	124.82M	120.45M
Cash Flow
Free Cash Flow	39.23M	38.29M	48.63M	52.39M	35.20M	48.24M
Operating Cash Flow	45.66M	44.44M	54.14M	57.44M	39.25M	52.00M
Investing Cash Flow	-74.57M	-30.66M	-17.22M	-3.54M	-36.12M	-43.54M
Financing Cash Flow	-5.38M	28.25M	-21.12M	-24.33M	-25.86M	-6.70M

Renew Holdings plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 913.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 913 is below the 20-day moving average (MA) of 938.50, above the 50-day MA of 874.34, and above the 200-day MA of 789.42, indicating a neutral trend. The MACD of 12.21 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 14.75 is Positive, 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
KLR	80 Outperform	£1.09B	7.97	24.69%	1.25%	-1.17%	12.31%
KIE	78 Outperform	£900.43M	16.67	10.87%	3.45%	4.40%	31.59%
RNWH	76 Outperform	£739.32M	16.33	22.62%	2.11%	3.23%	2.00%
MGNS	76 Outperform	£2.14B	14.02	24.19%	2.61%	6.93%	21.50%
COST	76 Outperform	£408.07M	13.09	13.21%	2.01%	-12.98%	5.51%
GFRD	71 Outperform	£494.47M	14.94	27.48%	3.90%	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.