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Renewi plc (GB:RWI)
:RWI

Renewi plc (RWI) AI Stock Analysis

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Renewi plc

(LSE:RWI)

63Neutral
Renewi plc's overall score is driven by a mix of operational challenges and strategic growth initiatives. The positive technical trends and recent corporate developments provide optimism, but profitability issues and high leverage weigh down the financial performance. Valuation concerns, highlighted by a negative P/E ratio, also impact the overall score.
Positive Factors
Financial Performance
Renewi has released a solid set of 1H25 results, with underlying EBIT up c.9% to €53.2m.
Strategic Initiatives
The group's Simplify programme is expected to result in c.€15m annualised cost reductions, with some benefit seen in 1H.
Negative Factors
Market Conditions
Inbound volumes declined in both the Netherlands and Belgium during the first half, primarily due to ongoing demand weakness.

Renewi plc (RWI) vs. S&P 500 (SPY)

Renewi plc Business Overview & Revenue Model

Company DescriptionRenewi plc (RWI) is a leading waste-to-product company in Europe, primarily operating in the waste management sector. The company focuses on recycling and converting waste into usable products, thereby promoting sustainability and reducing landfill waste. Renewi serves a diverse range of industries, offering services such as collection, sorting, treatment, and recycling of waste materials.
How the Company Makes MoneyRenewi plc generates revenue by providing comprehensive waste management services that include the collection, recycling, and disposal of waste. The company earns money through service contracts with municipalities, businesses, and industrial clients, charging fees for waste collection and processing. Additionally, Renewi generates income from the sale of recycled materials and refurbished products, which are derived from their waste processing operations. The company may also benefit from government incentives and partnerships focused on promoting environmental sustainability and circular economy initiatives.

Renewi plc Financial Statement Overview

Summary
Renewi plc faces significant challenges with declining revenues and profitability issues. The high leverage could pose risks, but cash flow stability provides some operational resilience. Future performance will depend on addressing profitability and managing debt levels effectively.
Income Statement
55
Neutral
Renewi plc has experienced declining revenues from the previous year, with a negative revenue growth rate. The gross profit margin stands at 19.74%, while the net profit margin is negative due to a net loss. The EBIT margin is 5.78%, and the EBITDA margin is 13.48%, indicating operational challenges affecting profitability.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio of 2.31, suggesting significant leverage, which could pose risks if not managed properly. The return on equity is negative due to the net loss, impacting shareholder returns. The equity ratio is 14.64%, indicating a low proportion of equity in the total assets mix.
Cash Flow
65
Positive
Renewi plc shows a stable operating cash flow to net income ratio of -4.95, reflecting strong cash generation relative to accounting losses. The free cash flow to net income ratio is -2.03, indicating that despite net losses, the company maintains positive free cash flow, which is crucial for sustaining operations.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.88B1.69B1.89B1.87B1.69B1.78B
Gross Profit
340.40M333.40M344.00M353.30M281.80M303.20M
EBIT
115.40M97.60M135.20M126.90M65.30M49.00M
EBITDA
194.40M227.60M268.40M263.50M187.80M111.60M
Net Income Common Stockholders
44.30M-34.10M62.90M74.50M5.60M-61.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
56.30M79.00M54.60M53.60M60.80M202.60M
Total Assets
1.97B2.06B2.09B1.95B1.97B2.13B
Total Debt
697.80M695.00M748.40M658.10M736.90M953.40M
Net Debt
647.40M616.00M704.70M615.60M685.40M758.90M
Total Liabilities
1.65B1.74B1.74B1.61B1.73B1.89B
Stockholders Equity
318.50M301.00M337.20M334.90M231.50M233.90M
Cash FlowFree Cash Flow
87.10M69.30M73.40M102.10M180.70M77.30M
Operating Cash Flow
202.80M168.70M188.40M179.70M238.70M157.70M
Investing Cash Flow
-105.90M-62.50M-155.20M-67.50M-43.90M19.10M
Financing Cash Flow
-81.90M-66.40M-32.80M-118.40M-336.00M-33.80M

Renewi plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price853.00
Price Trends
50DMA
822.30
Positive
100DMA
756.81
Positive
200DMA
706.95
Positive
Market Momentum
MACD
9.73
Positive
RSI
76.73
Negative
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWI, the sentiment is Positive. The current price of 853 is above the 20-day moving average (MA) of 851.65, above the 50-day MA of 822.30, and above the 200-day MA of 706.95, indicating a bullish trend. The MACD of 9.73 indicates Positive momentum. The RSI at 76.73 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RWI.

Renewi plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBKG
71
Outperform
£3.67B10.1311.03%1.86%0.39%-17.64%
GBSSE
68
Neutral
£16.41B8.3621.94%4.10%-13.09%231.40%
GBRWI
63
Neutral
£683.41M6.50%0.59%-14.90%-232.50%
63
Neutral
£5.51B30.084.17%4.79%-1.55%-65.03%
62
Neutral
$8.17B12.830.26%3.07%3.83%-16.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RWI
Renewi plc
853.00
309.04
56.81%
GB:BKG
The Berkeley Group Holdings
3,624.00
-977.15
-21.24%
GB:SSE
SSE
1,507.00
-22.24
-1.45%
GB:MNDI
Mondi plc
1,251.50
-4.45
-0.35%

Renewi plc Corporate Events

Delistings and Listing ChangesM&A TransactionsShareholder Meetings
Renewi Announces Final Cash Acquisition by Earth Bidco B.V.
Neutral
Feb 28, 2025

Renewi plc, a waste-to-product company, has announced a recommended final cash acquisition by Earth Bidco B.V., a company indirectly controlled by Macquarie European Infrastructure Fund 7 and BCI UK IRR Limited. The acquisition will be executed through a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. The publication of the scheme document marks a significant step in the acquisition process, outlining the terms and conditions of the scheme, and detailing the necessary shareholder meetings and voting procedures. This acquisition is expected to impact Renewi’s market presence and operations, with plans for the de-listing of Renewi shares from the London Stock Exchange and Euronext Amsterdam following the scheme’s effectiveness.

Business Operations and StrategyRegulatory Filings and Compliance
Renewi PLC Announces Change in Voting Rights
Neutral
Feb 25, 2025

Renewi PLC, a company involved in waste management and recycling, has announced a change in its voting rights structure. Avenue Europe International Management, L.P., based in the Cayman Islands, has reduced its voting rights in Renewi PLC from 5.58% to 0%, indicating a significant shift in shareholder composition that may impact the company’s governance and strategic decisions.

Business Operations and StrategyRegulatory Filings and Compliance
Glazer Capital Acquires Significant Stake in Renewi plc
Neutral
Feb 25, 2025

Renewi plc has received a notification from Glazer Capital, LLC regarding a significant change in voting rights. Glazer Capital, a New York-based investment manager, has crossed a threshold by acquiring 6.388% of voting rights in Renewi, indicating a strategic investment move that could influence the company’s future governance and decision-making processes.

Business Operations and StrategyRegulatory Filings and Compliance
Renewi plc Announces Change in Major Holdings by JPMorgan Chase & Co.
Neutral
Feb 25, 2025

Renewi plc, a UK-based company, has been notified of a change in major holdings by JPMorgan Chase & Co., which has adjusted its voting rights in the company. This adjustment in holdings reflects a strategic move by JPMorgan Chase & Co., potentially impacting Renewi’s shareholder dynamics and market perception.

Business Operations and StrategyRegulatory Filings and Compliance
JPMorgan Boosts Stake in Renewi plc, Crossing 5% Ownership Threshold
Neutral
Feb 24, 2025

Renewi plc has announced a significant change in its shareholder structure, with JPMorgan Chase & Co. crossing a new ownership threshold. This financial maneuver, involving a mix of direct voting rights and cash-settled equity swaps, raises JPMorgan’s total voting power in Renewi to over 5%. This shift in major holdings could potentially impact Renewi’s strategic decisions and influence its market positioning, signaling a notable development for stakeholders and investors.

Business Operations and StrategyRegulatory Filings and Compliance
JPMorgan Reduces Stake in Renewi plc
Neutral
Feb 20, 2025

Renewi plc, a company listed in the UK, has experienced a change in major holdings as JPMorgan Chase & Co. has crossed below the minimum threshold of voting rights in the company. This shift in voting rights was officially notified on February 19, 2025. The reduction of JPMorgan Chase & Co.’s stake in Renewi plc may impact the company’s shareholder dynamics and potentially alter its strategic decisions, affecting stakeholders and market perceptions.

Business Operations and StrategyRegulatory Filings and Compliance
JPMorgan Increases Stake in Renewi plc
Neutral
Feb 18, 2025

Renewi plc, a UK-based company, has been notified of a change in major holdings by JPMorgan Chase & Co. The notification indicates a significant increase in voting rights held by JPMorgan, from 4.935597% to 5.941982%, through a combination of direct shares and cash-settled equity swaps. This change in holdings reflects an adjustment in JPMorgan’s investment strategy within the company, potentially impacting Renewi’s shareholder dynamics.

Regulatory Filings and Compliance
Renewi plc Experiences a Shift in Major Shareholding
Neutral
Feb 17, 2025

Renewi plc, a UK-based company, has announced a change in its voting rights. Sterling Strategic Value Fund S.A., SICAV-RAIF, based in Luxembourg, has reduced its voting rights in Renewi plc from 3.02% to 2.62%, crossing a significant threshold. This adjustment could impact the company’s stakeholder dynamics and influence future decisions.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Renewi Reports Revenue Growth and Strategic Expansion in Q3 Trading Update
Positive
Feb 13, 2025

In its Q3 trading update for the nine months ending December 31, 2024, Renewi plc reported a 4.2% increase in revenue year-on-year, reaching €1,307.8 million, driven by higher volumes in Specialities and increased inbound prices in Commercial Waste. The company also achieved an 8.4% rise in underlying EBIT, supported by strong performance in Mineralz & Water and Specialities, alongside reduced SG&A costs. The completion of the UK Municipal business sale to Biffa Limited contributed to a rise in core net debt to €507.2 million. Renewi’s operations in the Netherlands have secured a major waste management contract with FrieslandCampina, and its Green Collective partnership has expanded, enhancing sustainability efforts. Despite mixed market conditions, the Group anticipates continued progress for the fiscal year, underpinned by commercial and cost initiatives.

Business Operations and Strategy
JPMorgan Reduces Stake in Renewi plc
Neutral
Jan 31, 2025

Renewi plc, a company involved in waste management and recycling, has reported a change in the holdings of JPMorgan Chase & Co., which now holds below the minimum threshold of voting rights in the company. This announcement indicates a reduction in JPMorgan’s influence over Renewi’s corporate decisions, which could impact shareholder dynamics and potentially influence market perceptions of the company’s strategic direction.

Business Operations and Strategy
Renewi plc Sees Shift in Shareholder Voting Rights
Neutral
Jan 27, 2025

Renewi plc has announced a significant change in its shareholder structure, with JPMorgan Chase & Co. crossing a major threshold of voting rights. This change, effective from January 23, 2025, reflects an increase in JPMorgan’s voting rights through various financial instruments, potentially impacting Renewi’s strategic decisions and positioning within the waste management sector.

Business Operations and StrategyRegulatory Filings and Compliance
Renewi plc Reports Change in Major Shareholder Holdings
Neutral
Jan 27, 2025

Renewi plc, a company in the UK, has reported a change in significant holdings due to the acquisition or disposal of voting rights by JPMorgan Chase & Co., which has resulted in its holdings falling below the minimum threshold. This notification reflects the dynamic nature of shareholder positions in the company, highlighting potential impacts on its governance and strategic decision-making process.

M&A TransactionsBusiness Operations and Strategy
Renewi Extends Acquisition Deadline Amid Potential Macquarie Offer
Neutral
Jan 23, 2025

Renewi plc has announced an extension of the deadline for a potential acquisition by Macquarie Asset Management, which is considering a cash offer for the entire share capital of Renewi. This extension allows Macquarie to finalize its internal approvals and transaction documentation, although no certainty exists that an offer will be made. The potential acquisition reflects Renewi’s strategic positioning in the recycling industry, and stakeholders are advised to remain cautious as developments unfold.

Other
JPMorgan Increases Stake in Renewi plc
Neutral
Jan 22, 2025

JPMorgan Chase & Co. has crossed a significant threshold of voting rights in Renewi plc, a UK-based company, as of January 16, 2025. This acquisition of voting rights could potentially impact Renewi’s corporate governance and shareholder dynamics, as JPMorgan now holds a total of 5.124289% voting rights through a combination of direct shares and financial instruments.

Renewi Director Joins Moreld AS Board
Dec 23, 2024

Renewi plc announced that Neil Hartley, a Non-Executive Director, has been appointed as an independent non-executive director for Moreld AS, a company engaged in energy, marine, and industrial sectors. This appointment reflects the integration of expertise across sectors and potentially enhances Renewi’s strategic positioning within the recycling and resource management industry.

Renewi Extends Deadline for Macquarie’s Acquisition Offer
Dec 23, 2024

Renewi plc has announced an extension of the deadline for Macquarie Asset Management to finalize its potential acquisition of Renewi’s entire share capital. The extension, approved by both Renewi’s Board and the Takeover Panel, allows Macquarie until January 23, 2025, to declare its firm intention to make an offer. This extension underscores the strategic significance of the potential acquisition, which could impact Renewi’s positioning in the recycling industry and influence stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.