Renault SA (RNLSY)
OTHER OTC:RNLSY
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Renault SA
(OTC:RNLSY)
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Rating:44Neutral
Price Target:
$6.00
▼(-23.86% Downside)
Action:Reiterated
Date:03/01/26
The score is primarily constrained by weak financial performance—2025 profitability deterioration, higher leverage, and negative free cash flow. Technicals also remain soft with the stock below longer-term averages. These are partially offset by supportive income characteristics (high dividend yield) and a relatively positive earnings call with clearer margin/FCF targets, but risks still dominate.
Positive Factors
EV and Hybrid Sales Momentum
Rapid electrified vehicle adoption demonstrates a durable shift in Renault's product mix toward EVs and hybrids, improving future regulatory alignment and market relevance. Higher EV/hybrid volumes support platform scale, lower unit costs, and long-term competitiveness in electrified segments.
Negative Factors
Materially Higher Leverage
A multi-year step-up in leverage meaningfully raises refinancing, interest and covenant risk, constraining strategic flexibility. Elevated debt-to-equity and weakened equity cushions increase vulnerability to adverse cycles and reduce capacity to finance electrification or absorb further shocks without deleveraging.
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Positive Factors
Negative Factors
EV and Hybrid Sales Momentum
Rapid electrified vehicle adoption demonstrates a durable shift in Renault's product mix toward EVs and hybrids, improving future regulatory alignment and market relevance. Higher EV/hybrid volumes support platform scale, lower unit costs, and long-term competitiveness in electrified segments.
Read all positive factors
Renault SA (RNLSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.01B
Dividend Yield6%
Average Volume (3M)1.10K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth7.69%
EPS Growth-1504.89%
CountryUS
Employees98,636
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-8.00
Shares Outstanding1,478,610,000
10 Day Avg. Volume0
30 Day Avg. Volume1,103
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.17
P/FCF Ratio-13.58
Enterprise Value/Market Cap6.50
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit5.30
Enterprise Value/Ebitda-10.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Renault SA Business Overview & Revenue Model
Company Description
Renault S.A. is a leading automotive firm involved in the conceptualization, manufacturing, sale, and global distribution of vehicles, operating both within France and internationally. The company's business activities are organized across several...
How the Company Makes Money
Renault primarily makes money by selling new vehicles (passenger cars and light commercial vehicles) through wholesale to dealers/distributors and direct/other channels in certain markets, with revenue recognized from vehicle deliveries. A signifi...
Renault SA Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture: Renault Group delivered on its July guidance with a 6.3% operating margin, record automotive net cash of EUR 7.4 billion, resilient free cash flow (EUR 1.5 billion), accelerating electrified vehicle sales (EVs +72%–77% in Europe) and a record Mobilize Financial Services result. Product launches and international rollouts showed tangible traction. Key negatives are sizable non-cash accounting and provision items (notably the EUR 9.3 billion Nissan accounting loss), FX headwinds, H2 warranty/recall costs, and ongoing commercial/price pressure in Europe; these temper headline results but are largely manageable within the announced strategy. On balance, operational momentum, cash strength and clear midterm targets outweigh the transitory and structural headwinds.Positive Updates
Operating Margin Delivered and Strong Profitability
Group operating profit of EUR 3.63 billion, representing a 6.3% operating margin (delivering July guidance). Automotive operating margin EUR 2.18 billion (4.2% of auto revenue).
Negative Updates
Large Non-Cash Accounting Charge Related to Nissan
Other operating income and expenses negative at EUR 11.5 billion, including a EUR 9.3 billion non-cash loss linked to the change in accounting treatment of Renault Group's stake in Nissan recorded in H1 2025, contributing materially to below-the-line weakness.
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Q4-2025 Updates
Positive
Negative
Operating Margin Delivered and Strong Profitability
Group operating profit of EUR 3.63 billion, representing a 6.3% operating margin (delivering July guidance). Automotive operating margin EUR 2.18 billion (4.2% of auto revenue).
Read all positive updates
Company Guidance
Renault guided 2026 to deliver an operating margin of circa 5.5% and free cash flow of about EUR 1.0 billion (including an expected EUR 350 million dividend from Mobilize Financial Services), assuming stable European markets and growth in South Korea, India and South America with consolidation of RNAIPL; the company also proposed a EUR 2.20 per‑share dividend for 2025. Over the midterm Renault targets a 5–7% group operating margin, steady mid‑single‑digit revenue growth and average free cash flow >EUR 1.5 billion per year, supported by annual cost reductions of around EUR 400 per vehicle, R&D/CapEx and supplier entry ticket below 8% of revenues, up to a 40% reduction in new‑project entry ticket, MFS dividends normalizing to ~EUR 500 million p.a., and additional dividend contribution from Horse Powertrain beginning in 2027.Renault SA Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
33
Negative
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 57.92B | 56.23B | 52.38B | 46.39B | 41.66B |
| Gross Profit | 11.05B | 11.73B | 10.96B | 8.27B | 6.87B |
| EBITDA | -5.64B | 5.10B | 6.39B | 7.59B | 4.80B |
| Net Income | -10.50B | 752.00M | 2.20B | -354.00M | 888.00M |
Balance Sheet | |||||
| Total Assets | 121.01B | 129.37B | 121.91B | 118.32B | 113.74B |
| Cash, Cash Equivalents and Short-Term Investments | 19.28B | 22.09B | 20.20B | 22.36B | 22.82B |
| Total Debt | 68.94B | 70.27B | 65.08B | 14.91B | 15.94B |
| Total Liabilities | 98.71B | 98.26B | 91.28B | 88.78B | 85.85B |
| Stockholders Equity | 20.79B | 30.31B | 29.75B | 28.95B | 27.32B |
Cash Flow | |||||
| Free Cash Flow | -705.00M | 4.20B | 1.40B | 929.00M | -277.00M |
| Operating Cash Flow | 2.34B | 7.16B | 4.46B | 3.61B | 2.41B |
| Investing Cash Flow | -3.30B | -2.04B | -2.23B | -3.29B | -1.62B |
| Financing Cash Flow | -1.33B | -3.23B | -3.08B | -478.00M | -629.00M |
Renault SA Technical Analysis
Negative
7.88
Price Trends
6.71
Negative
6.80
Negative
7.28
Negative
Market Momentum
-0.10
Positive
39.01
Neutral
1.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNLSY, the sentiment is Negative. The current price of 7.88 is above the 20-day moving average (MA) of 6.55, above the 50-day MA of 6.71, and above the 200-day MA of 7.28, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 1.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNLSY.
Renault SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $75.53B | 30.32 | 3.96% | 0.69% | -2.03% | -63.41% | |
58 Neutral | $34.95B | -13.84 | -3.53% | 4.19% | 1.63% | -154.96% | |
55 Neutral | $59.77B | -9.81 | -14.72% | 5.64% | 3.82% | -209.77% | |
52 Neutral | $21.23B | -5.98 | -69.98% | ― | 10.43% | 21.58% | |
50 Neutral | $14.94B | -56.06 | -2.49% | ― | -23.38% | -123.25% | |
44 Neutral | $9.01B | -0.67 | -53.75% | 6.00% | 7.69% | -1504.89% |
* Consumer Cyclical Sector Average
RNLSY
Renault SA
6.23
-3.50
-35.97%
F
Ford Motor
15.00
4.90
48.50%
GM
General Motors
83.77
35.28
72.77%
HMC
Honda Motor Company
26.97
-1.71
-5.97%
LI
Li Auto
14.53
-14.55
-50.03%
RIVN
Rivian Automotive
16.84
2.44
16.94%
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.