Renishaw PLC (GB:RSW)
LSE:RSW
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Renishaw
(LSE:RSW)
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Rating:72Outperform
Price Target:
3,936.00 p
▲(11.00% Upside)
Action:ReiteratedDate:02/11/26
The score is led by strong underlying financial stability (low leverage) and a positive earnings outlook with demonstrated cost savings, supported by an improving technical trend. These positives are partially offset by margin compression in recent financials and a relatively high P/E with only a modest dividend yield.
Positive Factors
Very strong balance sheet and minimal leverage
Extremely low leverage and a robust equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, lets management fund R&D, capex and targeted investments in emerging businesses through cycles, and supports strategic optionality over the next 2–6 months.
Negative Factors
Material margin compression
A sharp drop in gross margin signals cost or mix pressures that erode durable profitability. Even with cost programs, reduced product margin limits earnings leverage from revenue growth, constrains free cash flow expansion and could necessitate ongoing efficiency measures to restore historic margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet and minimal leverage
Extremely low leverage and a robust equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, lets management fund R&D, capex and targeted investments in emerging businesses through cycles, and supports strategic optionality over the next 2–6 months.
Read all positive factors
Renishaw (RSW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.58B
Dividend Yield2.12%
Average Volume (3M)128.55K
Price to Earnings (P/E)17.6
Beta (1Y)1.01
Revenue Growth3.15%
EPS Growth-13.57%
CountryUK
Employees5,256
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.63
Shares Outstanding72,788,540
10 Day Avg. Volume118,168
30 Day Avg. Volume128,546
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)2.25
Price to Sales (P/S)2.92
P/FCF Ratio20.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£4,013.33Price Target Upside13.18% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.56
Revenue Forecast (FY)£758.65M
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 prob...
How the Company Makes Money
Renishaw makes money mainly by selling engineered hardware systems, high-precision components, and associated software and services across its core end-markets.
1) Industrial metrology (measurement and inspection)
- Product sales: A major revenue...
Renishaw Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and strategic picture: record H1 revenue growth, strong regional results in the Americas and APAC, significant progress in emerging businesses (Additive Manufacturing and inductive encoders), successful product launches, and clear cost-reduction benefits improving margins and cash management. Offsetting these positives were material currency headwinds, regional weakness in EMEA (notably German machine tool demand), working capital pressures, ERP implementation disruption, and inherent order-book volatility. Management provided positive revenue and profit guidance and highlighted a strong innovation pipeline, but acknowledged short-term uncertainties.Positive Updates
Record First-Half Revenue Growth
Reported revenue up 7.1% year-on-year and up 11.5% at constant currency, driven by a notable Q2 pickup and growth across all three reporting segments.
Negative Updates
Material Currency Headwinds
Currency movements created a margin headwind of c.3.6 percentage points (GBP13.2m combined impact: ~GBP8m less contract income and ~GBP5.2m operating margin movement) despite hedging activity that provided c.GBP5m of offset.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Revenue Growth
Reported revenue up 7.1% year-on-year and up 11.5% at constant currency, driven by a notable Q2 pickup and growth across all three reporting segments.
Read all positive updates
Company Guidance
Renishaw gave positive trading guidance for FY26—expecting “strong revenue and profit growth”—supported by H1 results: revenue +7.1% reported (+11.5% constant currency), operating profit +11.4% to £57.5m and PBT +11.5% to £64.1m. Management reiterated a flat dividend of 16.8p, full‑year CapEx of ~£40m (H1 £17m), an adjusted effective tax rate around 21.8% for H2, cash conversion ~68% and cash balances just over £240m. They expect to realize ~£23m of annualized cost savings (c.£9m delivered in H1), have cut gross engineering costs by 8.5% and reduced headcount ~7% to just below 5,000, while managing c.£13.2m of currency headwinds (c.£5m hedge income). Key segment/region metrics underpinning the outlook: Industrial Metrology +4.3% (8.8% cc), Position Measurement +7.4% (~12% cc, 23.4% operating margin), Specialized Technologies >25% cc (margin up ≈22ppt to just short of breakeven), Americas +15% (>20% cc), APAC >10% (>15% cc) and EMEA -5%; ROIC rose to 13.2% (15% target).Renishaw Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 737.26M | 713.04M | 691.30M | 688.57M | 673.70M | 567.44M |
| Gross Profit | 383.90M | 330.83M | 421.74M | 434.00M | 438.78M | 369.64M |
| EBITDA | 122.99M | 133.90M | 156.07M | 166.39M | 174.02M | 172.36M |
| Net Income | 74.15M | 83.76M | 96.89M | 116.10M | 120.35M | 111.46M |
Balance Sheet | ||||||
| Total Assets | 1.11B | 1.14B | 1.05B | 1.04B | 992.77M | 856.88M |
| Cash, Cash Equivalents and Short-Term Investments | 240.88M | 273.65M | 217.84M | 206.39M | 253.16M | 215.01M |
| Total Debt | 14.66M | 15.64M | 18.54M | 13.33M | 16.26M | 20.01M |
| Total Liabilities | 199.53M | 209.36M | 148.56M | 146.88M | 177.60M | 153.55M |
| Stockholders Equity | 913.76M | 926.44M | 903.40M | 897.24M | 815.75M | 703.91M |
Cash Flow | ||||||
| Free Cash Flow | 67.89M | 101.62M | 49.30M | 6.27M | 82.58M | 111.81M |
| Operating Cash Flow | 108.12M | 147.90M | 124.08M | 90.87M | 122.24M | 135.53M |
| Investing Cash Flow | -48.33M | -128.64M | -31.50M | -94.68M | -6.65M | -134.43M |
| Financing Cash Flow | -59.24M | -55.81M | -52.70M | -61.40M | -55.89M | -17.84M |
Renishaw Technical Analysis
Negative
3546.00
Price Trends
3913.40
Negative
3719.78
Negative
3449.24
Positive
Market Momentum
-110.70
Positive
35.89
Neutral
26.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RSW, the sentiment is Negative. The current price of 3546 is below the 20-day moving average (MA) of 3775.55, below the 50-day MA of 3913.40, and above the 200-day MA of 3449.24, indicating a neutral trend. The MACD of -110.70 indicates Positive momentum. The RSI at 35.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RSW.
Renishaw Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £531.55M | 10.73 | 8.34% | 2.09% | 0.49% | 61.73% | |
72 Outperform | £2.58B | 17.58 | 8.06% | 2.12% | 3.15% | -13.57% | |
70 Neutral | £70.06M | 12.03 | 9.07% | ― | 7.36% | 31.93% | |
69 Neutral | £283.73M | 31.22 | 12.26% | 1.89% | 5.46% | -26.44% | |
67 Neutral | £210.75M | 25.56 | 3.10% | 2.19% | 10.66% | 21.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £208.38M | -4.02 | -31.21% | ― | -16.33% | -448.12% |
* Technology Sector Average
GB:RSW
Renishaw
3,546.00
1,328.32
59.90%
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378.96
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4,260.00
-2,342.31
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67.00
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35.35%
GB:TTG
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GB:DSCV
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Renishaw Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Renishaw posts record H1 revenue and raises confidence in FY2026 outlook
Positive
Feb 11, 2026
Renishaw reported record first-half revenue of £365.6m for FY2026, up 7.1% year on year, driven by broad-based growth across Industrial Metrology, Position Measurement and Specialised Technologies, and strong demand in the Americas and APAC. ...
Business Operations and StrategyDividendsFinancial Disclosures
Renishaw posts record H1 revenue and lifts guidance on growing order book
Positive
Feb 11, 2026
Renishaw reported record first-half revenue of £365.6m for FY2026, up 7.1% at actual rates and 11.5% at constant currency, driven by growth across all three segments and strong demand in the Americas and APAC, particularly in defence and semi...
Business Operations and StrategyFinancial Disclosures
Renishaw Sets Date for Interim Results and Investor Presentation
Neutral
Jan 29, 2026
Renishaw plc has announced that it will publish its interim results for the six months ended 31 December 2025 on 11 February 2026 at 07:00 GMT, followed by an in-person investor and analyst presentation in London led by Chief Executive Officer Wil...
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.