Renault SA (RNLSY) AI Stock Analysis

• Market Cap: $11.37B
• Dividend Yield: 6.36%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.66
• Revenue Growth: 7.42%
• EPS Growth: -64.34%
• Country: US
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): -0.40
• Shares Outstanding: 1,478,610,000
• 10 Day Avg. Volume: 6,944
• 30 Day Avg. Volume: 3,683
• PEG Ratio: -0.32
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.91
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $8.00 ▲(1.27%Upside)

Renault's stock score reflects a mixed outlook. Financial recovery and strong cash flow management are positive aspects, but technical indicators show bearish momentum, and high leverage poses a risk. The valuation is moderate, with a decent dividend yield. The company needs to address operational efficiencies and leverage to improve its stock outlook.

Renault SA Business Overview & Revenue Model

Company Description

Renault SA (RNLSY) is a French multinational automobile manufacturer established in 1899. The company is headquartered in Boulogne-Billancourt, France, and operates in the automotive industry. Renault produces a wide range of vehicles, including passenger cars, vans, and electric vehicles. The company is known for its commitment to innovation and sustainable mobility, offering a diverse lineup of brands such as Renault, Dacia, and Alpine. Renault also focuses on automotive financing, maintenance, and leasing services, enhancing its global footprint through strategic partnerships and alliances, notably with Nissan and Mitsubishi under the Renault-Nissan-Mitsubishi Alliance.

How the Company Makes Money

Renault SA generates revenue through multiple streams, primarily from the sale of vehicles, including passenger cars and light commercial vehicles. The company's revenue model is supported by its extensive global distribution network and its diverse brand portfolio. Renault also earns income from automotive services such as financing, leasing, and maintenance, which are facilitated through its subsidiary, RCI Banque. Additionally, Renault benefits from its strategic alliances, particularly the Renault-Nissan-Mitsubishi Alliance, which fosters shared technology development, cost efficiencies, and expanded market reach. Furthermore, Renault invests in research and development to innovate in electric and autonomous vehicle technologies, aiming to capture market share in these growing segments.

Renault SA Financial Statement Overview

Summary

Renault's revenue and profit margins have improved, indicating recovery and growth. However, high leverage poses a financial risk, and there are challenges in operational efficiency despite robust cash flow management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.23B	52.38B	46.39B	41.66B	43.47B
Gross Profit	11.73B	10.96B	8.27B	6.87B	6.01B
EBITDA	5.10B	6.39B	7.59B	4.80B	3.65B
Net Income	752.00M	2.20B	-338.00M	888.00M	-8.01B
Balance Sheet
Total Assets	129.37B	121.91B	118.32B	113.74B	115.74B
Cash, Cash Equivalents and Short-Term Investments	22.09B	20.20B	22.36B	22.82B	22.12B
Total Debt	70.27B	65.08B	64.34B	61.96B	64.89B
Total Liabilities	98.26B	91.28B	88.78B	85.85B	90.40B
Stockholders Equity	30.31B	29.75B	28.80B	27.32B	24.77B
Cash Flow
Free Cash Flow	4.20B	1.40B	929.00M	-277.00M	1.54B
Operating Cash Flow	7.16B	4.46B	3.61B	2.41B	5.75B
Investing Cash Flow	-2.04B	-2.23B	-3.24B	-1.62B	-4.23B
Financing Cash Flow	-3.23B	-3.08B	-532.00M	-629.00M	5.59B

Renault SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.9 is below the 20-day moving average (MA) of 8.73, below the 50-day MA of 9.47, and below the 200-day MA of 9.50, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 32.14 is Neutral, neither overbought nor oversold. The STOCH value of 36.99 is Neutral, 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	77 Outperform	$44.86B	9.04	11.47%	6.77%	3.03%	28.54%
LI	74 Outperform	$29.60B	25.94	12.22%	―	10.28%	-29.75%
GM	72 Outperform	$50.89B	8.47	7.07%	0.98%	5.34%	-28.29%
HMC	71 Outperform	$53.97B	9.44	6.54%	4.17%	0.83%	-26.70%
Sector *	62 Neutral	$17.27B	9.93	-8.46%	3.20%	1.63%	-26.06%
RNLSY	59 Neutral	$11.37B	13.23	2.53%	6.36%	7.42%	-64.34%
XPEV	53 Neutral	$18.23B	―	-15.52%	―	50.45%	49.81%