Renishaw (RSW) AI Stock Analysis

• Market Cap: £2.70B
• Dividend Yield: 2.12%
• Average Volume (3M): 128.55K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.93
• Revenue Growth: 3.15%
• EPS Growth: -13.57%
• Country: UK
• Employees: 5,256
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.62
• Shares Outstanding: 72,788,540
• 10 Day Avg. Volume: 118,168
• 30 Day Avg. Volume: 128,546
• PEG Ratio: -1.84
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 20.47
• 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: £3,880.00
• Price Target Upside: 4.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 4,077.00p ▲(9.89% Upside)

Renishaw's overall stock score reflects strong financial stability and positive technical indicators, tempered by high valuation and sector-specific challenges. Strategic initiatives and a strong cash position support future growth, but maintaining profitability amid cost pressures is crucial.

Positive Factors

Product Innovation

Renishaw's focus on product innovation with successful launches enhances its competitive edge, supporting long-term growth across diverse sectors.

Strong Cash Position

A robust cash position provides Renishaw with flexibility for strategic investments, acquisitions, or returning value to shareholders, bolstering financial stability.

Cost Reduction Success

Effective cost management through structural changes enhances profitability and operational efficiency, positioning Renishaw for sustainable growth.

Negative Factors

Declining Profit Margins

Falling profit margins indicate rising costs and potential pricing pressures, which could challenge Renishaw's ability to maintain profitability long-term.

Additive Manufacturing Revenue Decline

A decline in additive manufacturing revenue highlights sector variability and challenges, potentially impacting Renishaw's growth in this innovative area.

Weakness in Automotive Sector

Continued struggles in the automotive sector could hinder Renishaw's revenue growth and market share in key regions, affecting overall performance.

Renishaw Business Overview & Revenue Model

Company Description

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. The company offers co-ordinate measuring machine (CMM) products, machine tool probe and software, performance measurement systems, gauging systems, fixtures, and styli for touch probe systems; interferometric laser, magnetic, and optical encoders; additive manufacturing systems; plastics and metal vacuum casting machines; and mapping sensors. It also provides healthcare products, such as dental scanners, neurosurgical robots and accessories, neurosurgical planning software, drug delivery systems, Raman microscopes, craniomaxillofacial customized implants, analysers, and hybrid Raman systems. In addition, the company offers asset financing and travel agency services. It serves the aerospace, agriculture, automotive, construction, consumer electronics, healthcare, power generation, resource exploration, energy, heavy, medical, and precision manufacturing industries, as well as scientific, research, and analysis industries. The company was incorporated in 1973 and is headquartered in Wotton-under-Edge, the United Kingdom.

How the Company Makes Money

Renishaw generates revenue through multiple streams, primarily from the sale of metrology products, which include probe systems, software, and calibration equipment. The company also earns income from its healthcare division, which focuses on dental and surgical products, including dental CAD/CAM systems and neurostimulation devices. Key revenue streams include direct product sales, after-sales services, and maintenance contracts. Additionally, Renishaw benefits from partnerships with other technology companies and institutions, contributing to its research and development efforts, which help to drive innovation and expand its product offerings. The company also sees growth from international markets, which represent a significant portion of its revenue base, owing to its global presence and distribution networks.

Renishaw Financial Statement Overview

Summary

Renishaw demonstrates a solid financial position with strong balance sheet metrics and improving cash flow management. However, declining profit margins highlight potential cost management issues. The company's low leverage and strong equity position provide a cushion against financial volatility, but maintaining profitability will be crucial for future growth.

Income Statement

Renishaw's income statement shows a stable revenue growth with a slight increase in the latest year. However, there is a noticeable decline in gross profit margin from 61% to 46% over the past year, indicating increased cost pressures. The net profit margin has also decreased, suggesting challenges in maintaining profitability. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.017, indicating minimal leverage and financial risk. The equity ratio is robust, showcasing a solid capital structure. However, the return on equity has slightly decreased, which may affect investor returns. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation from operations. However, the free cash flow to net income ratio is moderate, which could imply limited cash available for reinvestment or dividends.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	713.04M	713.04M	691.30M	688.57M	673.70M	567.44M
Gross Profit	330.83M	330.83M	421.74M	434.00M	438.78M	369.64M
EBITDA	133.90M	133.90M	156.07M	166.39M	174.02M	172.36M
Net Income	83.76M	83.76M	96.89M	116.10M	120.35M	111.46M
Balance Sheet
Total Assets	1.14B	1.14B	1.05B	1.04B	992.77M	856.88M
Cash, Cash Equivalents and Short-Term Investments	273.65M	273.65M	217.84M	206.39M	253.16M	215.01M
Total Debt	15.64M	15.64M	18.54M	13.33M	16.26M	20.01M
Total Liabilities	209.36M	209.36M	148.56M	146.88M	177.60M	153.55M
Stockholders Equity	926.44M	926.44M	903.40M	897.24M	815.75M	703.91M
Cash Flow
Free Cash Flow	101.62M	101.62M	49.30M	6.27M	82.58M	111.81M
Operating Cash Flow	147.90M	147.90M	124.08M	90.87M	122.24M	135.53M
Investing Cash Flow	-51.67M	-128.64M	-31.50M	-94.68M	-6.65M	-134.43M
Financing Cash Flow	-54.67M	-55.81M	-52.70M	-61.40M	-55.89M	-17.84M

Renishaw Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3710.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RSW, the sentiment is Positive. The current price of 3710 is above the 20-day moving average (MA) of 3519.00, above the 50-day MA of 3481.97, and above the 200-day MA of 3034.86, indicating a bullish trend. The MACD of 52.66 indicates Negative momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RSW.

Renishaw Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	77 Outperform	£580.57M	22.40	8.49%	2.09%	0.49%	61.73%
RSW	74 Outperform	£2.70B	32.22	9.15%	2.12%	3.15%	-13.57%
SDI	70 Neutral	£78.43M	17.12	9.34%	―	7.36%	31.93%
JDG	69 Neutral	£384.43M	34.91	12.24%	1.89%	5.46%	-26.44%
GHH	67 Neutral	£167.55M	45.13	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£199.43M	-2.85	-31.42%	―	-16.33%	-448.12%

Renishaw Corporate Events

Renishaw Announces Key Share Transactions by Management

Renishaw plc has announced a series of transactions involving the acquisition and disposal of shares by persons discharging managerial responsibilities and persons closely associated with them. These transactions, conducted outside a trading venue, involve significant volumes of ordinary shares at a consistent price of £34.35. The movements in shares reflect strategic financial decisions by key stakeholders and could impact the company’s market positioning and shareholder value.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4400.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Appoints Interim Finance Director and Passes AGM Resolutions

Renishaw plc announced the appointment of Rob Macdonald as the Interim Group Finance Director following Allen Roberts’ resignation. Macdonald, with a 26-year tenure at the company, will assume the role on December 1, 2025, while the search for a permanent CFO continues. At the Annual General Meeting, all proposed resolutions were passed, including the re-election of several directors and the authorization for the company to purchase its own shares, indicating strong shareholder support and stable governance.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4400.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Founders’ Families Establish Holding Company for Generational Transfer

Renishaw plc has announced the creation of Deltam Holdings Limited, a joint family holding company established by the families of its founders, to hold 50.25% of Renishaw’s issued share capital. This move is part of a generational transfer strategy, ensuring long-term family commitment to the company. The governance structure of Deltam allows for specific voting rights and arrangements, maintaining the influence of the McMurtry and Deer families. The UK Panel on Takeovers and Mergers has confirmed that Deltam will not be required to make a mandatory offer under the City Code on Takeovers and Mergers, allowing the company to maintain its current operations without additional regulatory obligations.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4400.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Executives Receive Shares Under Incentive Plan

Renishaw plc announced the vesting of awards under its Deferred Annual Equity Incentive Plan, resulting in the issuance of ordinary shares to key executives. The CEO, Will Lee, and Group Finance Director, Allen Roberts, received shares and sold portions to cover tax liabilities, reflecting the company’s commitment to aligning executive incentives with shareholder interests.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4400.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Grants Share Awards to Key Executives

Renishaw plc announced the grant of share awards under its Deferred Annual Equity Incentive Plan to key managerial personnel, including CEO Will Lee, Group Finance Director Allen Roberts, and Group General Counsel & Company Secretary Kasim Hussain. The awards, totaling 15,585 ordinary shares, are set to vest in 2028, reflecting the company’s commitment to aligning management incentives with long-term shareholder value. This move underscores Renishaw’s strategic focus on retaining top talent and enhancing its competitive positioning in the market.

The most recent analyst rating on (GB:RSW) stock is a Hold with a £3530.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Reports Steady Start to FY2026 Amid Mixed Market Conditions

Renishaw plc reported a steady start to FY2026 despite mixed market conditions, with a 2.8% growth in revenue at constant currency. The company successfully launched new Industrial Metrology products and implemented a £20m cost reduction program. Regional performance varied, with strong growth in the Americas and APAC, while EMEA faced challenges due to weak demand and ERP system implementation. Strategic initiatives, including product launches and operational efficiencies, are expected to drive further growth.

The most recent analyst rating on (GB:RSW) stock is a Hold with a £3940.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Updates Voting Arrangement Post-Share Transfer

Renishaw plc announced a change in the voting arrangement following the transfer of shares from the late Sir David McMurtry to a trust benefiting Lady Teresa McMurtry. The new voting agreement involves the trustees and the Deers, maintaining similar terms as before, potentially impacting future company resolutions and governance until May 2028.

The most recent analyst rating on (GB:RSW) stock is a Hold with a £3940.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Releases 2025 Annual Report and Announces AGM

Renishaw plc has released its Annual Report for the year ending 30 June 2025 and announced the Notice of its Annual General Meeting (AGM) scheduled for 26 November 2025. These documents have been submitted to the National Storage Mechanism and are available online, reflecting the company’s commitment to transparency and shareholder engagement. The AGM will take place at the company’s headquarters, providing an opportunity for stakeholders to engage with the company’s leadership and discuss future strategies.

The most recent analyst rating on (GB:RSW) stock is a Hold with a £3530.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.