Renault SA (RNLSY) AI Stock Analysis

• Market Cap: $11.41B
• Dividend Yield: 6%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 9.04%
• EPS Growth: -946.19%
• Country: US
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -8.93
• Shares Outstanding: 1,478,610,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,103
• PEG Ratio: -0.26
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 3.03
• Enterprise Value/Market Cap: 5.39
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 10.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $8.50 ▲(7.87% Upside)

Renault's overall stock score reflects a mix of financial recovery and operational challenges. The strong cash flow and revenue growth are positive, but high leverage and weak technical indicators weigh down the score. The attractive dividend yield is a positive, but the negative P/E ratio suggests caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling strategic investments and debt reduction, bolstering long-term resilience.

Electric Vehicle Focus

Focus on electric vehicles aligns with industry trends towards sustainability, potentially capturing growing market share and driving future growth.

Negative Factors

High Leverage

High leverage can increase financial risk, limit strategic flexibility, and strain cash flow, potentially impacting long-term financial health.

Operational Efficiency Challenges

Declining margins suggest operational inefficiencies, which could hinder profitability and competitiveness if not addressed over the long term.

Potential Job Cuts

Potential job cuts may indicate cost pressures and restructuring needs, which could impact employee morale and operational capacity in the long run.

Renault SA Business Overview & Revenue Model

Company Description

Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally. The company operates through Automotive, AVTOVAZ, Sales Financing, and Mobility Services segments. It offers passenger and light commercial, and electric vehicles primarily under the Renault, Dacia, Renault Samsung Motors, Alpine, LADA, Jinbei & Huaasong, and Eveasy, as well as under the Nissan, Datsun, and Infiniti brands. The company also sells powertrains and used vehicles, and spare parts; and provides various services, including vehicle sales financing, rental, maintenance, and service contracts. In addition, it offers finance for the purchase on inventories of new and used vehicles, and replacement parts; designs, produces, and sells converted vehicles; Renault EASY CONNECT for Fleet, a connected service for business users; and produces driving aids, such as steering-wheel mounted accelerators and brakes, multifunction remote control units to operate indicators, lights and horns, pedal transfers, etc.; and manual or electric swivel seats. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.

How the Company Makes Money

Renault SA generates revenue primarily through the sale of vehicles, comprising passenger cars and commercial vehicles. The company's revenue model is multifaceted, with key revenue streams including vehicle sales, financing and leasing services, and after-sales services such as maintenance and spare parts. The company also benefits from strategic partnerships and alliances, including its participation in the Renault-Nissan-Mitsubishi Alliance, which enhances its market reach and operational efficiencies. Additionally, Renault is investing in electric vehicles and mobility services, tapping into the growing demand for sustainable transportation solutions. Factors contributing to its earnings include the company's competitive pricing strategy, innovative product offerings, and expansion into emerging markets.

Renault SA Financial Statement Overview

Summary

Renault's financial performance shows a positive turnaround with revenue growth and improved profit margins. However, high leverage and operational efficiency challenges are notable risks. Strong cash flow management supports a positive outlook.

Income Statement

Renault's revenue has shown a healthy growth from 2023 to 2024, with a notable increase in Gross Profit and a positive turnaround in Net Income from 2022 to 2024. Gross Profit Margin improved to 20.9% in 2024, while the Net Profit Margin was 1.34%, recovering from a negative in previous years. However, the EBIT Margin and EBITDA Margin have slightly declined, indicating some operational efficiency challenges.

Balance Sheet

The debt-to-equity ratio stands at 2.32, reflecting a high leverage, which might pose financial risk. However, the company has managed to maintain a stable Stockholders' Equity despite increasing Total Debt. The Return on Equity (ROE) in 2024 is 2.48%, indicating modest efficiency in generating profits from shareholders' equity. The Equity Ratio is 23.43%, showing a reasonable level of company assets financed by equity.

Cash Flow

Renault has demonstrated strong cash flow management, with a significant increase in Free Cash Flow by 200.36% from 2023 to 2024. The Operating Cash Flow to Net Income ratio is high at 9.52, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is 5.58, suggesting room for improvement in translating income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.91B	56.23B	52.38B	46.39B	41.66B	43.47B
Gross Profit	11.09B	11.73B	10.96B	8.27B	6.87B	6.01B
EBITDA	5.89B	5.10B	6.39B	7.59B	4.80B	2.41B
Net Income	-11.73B	752.00M	2.20B	-354.00M	888.00M	-8.01B
Balance Sheet
Total Assets	116.94B	129.37B	121.91B	118.32B	113.74B	115.74B
Cash, Cash Equivalents and Short-Term Investments	18.07B	22.09B	20.20B	22.36B	22.82B	22.12B
Total Debt	68.53B	70.27B	65.08B	14.91B	15.94B	16.83B
Total Liabilities	96.29B	98.26B	91.28B	88.78B	85.85B	90.40B
Stockholders Equity	19.88B	30.31B	29.75B	28.95B	27.32B	24.77B
Cash Flow
Free Cash Flow	1.12B	4.20B	1.40B	929.00M	-277.00M	1.54B
Operating Cash Flow	3.99B	7.16B	4.46B	3.61B	2.41B	5.75B
Investing Cash Flow	-1.85B	-2.04B	-2.23B	-3.29B	-1.62B	-4.23B
Financing Cash Flow	-4.33B	-3.23B	-3.08B	-478.00M	-629.00M	5.59B

Renault SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 below the 20-day moving average (MA) of 8.41, below the 50-day MA of 8.22, and below the 200-day MA of 8.78, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of -0.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F	71 Outperform	$56.58B	12.18	10.26%	5.64%	3.75%	33.37%
GM	70 Outperform	$77.31B	16.66	4.44%	0.69%	2.58%	-46.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RNLSY	59 Neutral	$11.41B	-0.84	-45.69%	6.00%	9.04%	-946.19%
HMC	58 Neutral	$40.55B	10.16	5.23%	4.19%	0.34%	-25.49%
LI	55 Neutral	$16.84B	28.52	6.53%	―	-10.00%	-54.75%
RIVN	53 Neutral	$23.56B	-6.16	-65.28%	―	28.21%	44.43%