Renishaw (RSW) AI Stock Analysis

• Market Cap: £2.82B
• Dividend Yield: 2.12%
• Average Volume (3M): 128.55K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.12
• Revenue Growth: 3.15%
• EPS Growth: -13.57%
• Country: UK
• Employees: 5,256
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.63
• 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: £4,013.33
• Price Target Upside: 3.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.56
• Revenue Forecast (FY): £756.69M

• Rating: 72 Outperform
• Price Target: 4,312.00 p ▲(11.13% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 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 low leverage / strong balance sheet

A debt-to-equity of ~0.017 signals minimal financial risk and large capacity to absorb cyclical downturns. This durable capital strength supports ongoing R&D, targeted CapEx (~£40m guidance), opportunistic M&A or buybacks, and preserves flexibility across 2–6 months of demand variability.

Improving cash generation and sizeable cash balance

Rising free cash flow and ~£240m cash provide a durable buffer to fund investment in plants, AM scale-up and software, plus support dividends. Even with sub-target cash conversion, stronger FCF reduces refinancing risk and enables strategic investments that underpin medium-term growth.

Diversified product mix with high-growth segments

Growth across Additive Manufacturing and Position Measurement alongside core metrology spreads revenue risk across automotive, aerospace, semiconductors and medical markets. Structural demand in automation/semiconductor and AM adoption supports sustainable top-line expansion beyond short-term cyclical swings.

Negative Factors

Sharp gross margin compression

A 15pp fall in gross margin indicates meaningful cost, mix or pricing pressure that erodes operating leverage. If persistent, this reduces reinvestment capacity and ROIC, forcing either structural cost programs or price increases to restore profitability over the medium term.

Material currency headwinds

Significant FX effects (~£13.2m) show the company is exposed to volatile exchange rates across global revenues. Hedging only partially offsets this, making reported margins and cash flow vulnerable to sustained currency moves and complicating medium-term planning and guidance.

ERP disruption and working-capital pressure

Raised working capital and ERP roll-out issues reduce cash conversion and create execution risk. Continued operational disruption can delay deliveries, raise costs and depress near-term margins, limiting the company's ability to convert revenue growth into free cash over the next several quarters.

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

Strong balance sheet strength (very low leverage and solid equity position) and improving free cash flow are positives, but the income statement shows notable margin compression (gross margin down sharply and net margin lower), which tempers overall financial quality.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 3880.00
• 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:RSW, the sentiment is Negative. The current price of 3880 is below the 20-day moving average (MA) of 4134.05, below the 50-day MA of 3909.45, and above the 200-day MA of 3369.93, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	77 Outperform	£551.74M	10.73	8.49%	2.09%	0.49%	61.73%
RSW	72 Outperform	£2.82B	17.58	8.06%	2.12%	3.15%	-13.57%
SDI	70 Neutral	£79.48M	12.03	9.07%	―	7.36%	31.93%
JDG	69 Neutral	£274.41M	31.22	12.26%	1.89%	5.46%	-26.44%
GHH	65 Neutral	£202.54M	25.56	3.10%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£211.54M	-4.83	-31.42%	―	-16.33%	-448.12%

Renishaw Corporate Events

Renishaw posts record H1 revenue and raises confidence in FY2026 outlook

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. Adjusted operating margin improved to 15.7% and adjusted profit before tax rose 11.5%, although statutory profit was hit by £18m of restructuring-related redundancy and impairment charges, as the company invests in productivity and capacity to support a growing order book.

The group highlighted particularly strong momentum in defence and semiconductor markets and in emerging product lines such as additive manufacturing systems, co-ordinate measuring and gauging systems, and enclosed optical encoders. Despite mixed conditions in general industrial markets and currency and tariff headwinds, Renishaw reiterated confidence in strong full-year growth, guiding FY2026 revenue to £740m–£780m and adjusted profit before tax to £132m–£157m, while maintaining its interim dividend and emphasizing a solid balance sheet and higher return on invested capital.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4077.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw posts record H1 revenue and lifts guidance on growing order book

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 semiconductor markets. The company highlighted rising momentum in emerging product lines, including coordinate measuring and gauging systems, additive manufacturing platforms and enclosed optical encoders, supported by structural trends such as industrial automation, electrification and decarbonisation.

Adjusted operating margin improved to 15.7% as productivity gains and fixed cost reductions outweighed currency and tariff headwinds, lifting adjusted profit before tax by 11.5%, although statutory profit fell 20% due to £18m of restructuring-related redundancy and impairment charges. With record Q2 sales, a strengthening order book, solid cash and deposits of £240.9m and return on invested capital up to 13.2%, management maintained the interim dividend and guided for full-year FY2026 revenue of £740m–£780m and adjusted pre-tax profit of £132m–£157m, signalling confidence despite mixed industrial markets and geopolitical uncertainty.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4077.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Sets Date for Interim Results and Investor Presentation

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 Will Lee and Director of Group Strategic Development Marc Saunders. The company is offering both a live video webcast and a later recording of the session, underlining its efforts to maintain transparent communication with investors and other stakeholders and to provide access to management’s commentary on recent trading and strategic developments.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4077.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

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.