Renault SA (RNLSY) AI Stock Analysis

• Market Cap: $11.73B
• Dividend Yield: 6.19%
• Average Volume (3M): 6.76K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.70
• Revenue Growth: 9.04%
• EPS Growth: -946.19%
• Country: US
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): -8.93
• Shares Outstanding: 1,478,610,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 6,759
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.23
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 6.25
• Enterprise Value/Ebitda: 11.89
• 1Y Price Target: $8.00
• Price Target Upside: -1.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $8.00 ▼(-1.23% Downside)

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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability and expansion potential.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for strategic investments and debt reduction, supporting long-term growth.

Electric Vehicle Focus

Focus on electric vehicles aligns with global sustainability trends, positioning Renault for future growth as demand for eco-friendly vehicles rises.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing risk, especially in economic downturns, impacting long-term stability.

Operational Efficiency Challenges

Declining margins suggest operational inefficiencies, which could hinder profitability and competitiveness if not addressed, affecting future performance.

Modest Profitability

Low ROE indicates limited efficiency in generating profits from equity, which may affect investor confidence and long-term financial health.

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 generates revenue primarily through the sale of vehicles, including traditional internal combustion engine models and electric vehicles. The company has a diverse revenue model that includes retail sales through dealerships, fleet sales to businesses, and online sales channels. Key revenue streams include new vehicle sales, after-sales services such as maintenance and parts sales, and financing solutions offered through its financial services division. Additionally, Renault benefits from strategic partnerships within the Renault-Nissan-Mitsubishi Alliance, enabling cost-sharing in research and development, shared technology platforms, and expanded market access. The growing demand for electric vehicles also presents a significant opportunity for revenue growth as Renault continues to invest in and expand its electric vehicle lineup.

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: Neutral
• Last Price: 8.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNLSY, the sentiment is Neutral. The current price of 8.1 is above the 20-day moving average (MA) of 7.79, above the 50-day MA of 8.06, and below the 200-day MA of 9.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 98.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNLSY.

Renault SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMC	77 Outperform	$46.18B	11.95	5.17%	4.08%	1.68%	-39.28%
GM	75 Outperform	$54.59B	9.09	7.07%	0.92%	5.34%	-28.29%
F	73 Outperform	$45.45B	14.57	7.11%	6.38%	2.72%	-17.58%
LI	67 Neutral	$23.75B	23.12	11.91%	―	7.49%	-21.06%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
RNLSY	59 Neutral	$11.73B	13.20	-45.69%	6.19%	9.04%	-946.19%
RIVN	49 Neutral	$16.88B	―	-54.42%	―	2.73%	45.63%