Renasant (RNST) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 3%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.20
• Revenue Growth: 16.70%
• EPS Growth: 27.09%
• Country: US
• Employees: 2,200
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 3.26
• Shares Outstanding: 94,895,615
• 10 Day Avg. Volume: 1,894,685
• 30 Day Avg. Volume: 1,053,445
• PEG Ratio: 0.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.15
• Price to Cash Flow (P/CF): 6.10
• P/FCF Ratio: 3.20
• 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: $44.25
• Price Target Upside: 50.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Renasant's robust financial performance, driven by revenue growth and strong balance sheet, is somewhat offset by cash flow challenges and mixed technical signals. The earnings call provides a positive future outlook with the merger, though there are concerns with non-interest income and expenses. Overall, the stock presents moderate investment potential with some risks.

Renasant Business Overview & Revenue Model

Company Description

Renasant Corporation (RNST) is a financial services institution based in the Southeastern United States. It operates primarily through its subsidiary, Renasant Bank, which provides a wide range of banking and financial services including commercial and consumer banking, mortgage lending, and wealth management. The company serves individuals, small businesses, and corporate clients across its regional branch network.

How the Company Makes Money

Renasant Corporation generates revenue primarily through interest income from its lending activities and non-interest income from fees and other financial services. The company earns interest income by providing various loans, including commercial, real estate, and consumer loans, which are funded by customer deposits and other borrowings. Non-interest income is derived from service charges, mortgage banking, investment advisory, and wealth management fees. Renasant also benefits from its strategic partnerships with other financial service providers, which enhance its product offerings and contribute to its earnings.

Renasant Financial Statement Overview

Summary

Renasant exhibits strong revenue growth and improved profitability margins. The balance sheet is solid with effective debt management, but cash flow concerns and missing operational margin data warrant attention.

Income Statement

Renasant exhibits strong revenue growth, particularly from 2023 to 2024, with a revenue increase of about 40%. The net profit margin improved significantly from 22.9% in 2023 to 22% in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins were not available for 2024, which slightly limits the comprehensive assessment of operational efficiency.

Balance Sheet

The balance sheet reveals a healthy equity ratio of 14.9% in 2024, suggesting a solid capital position. The debt-to-equity ratio improved from 0.32 in 2023 to 0.20 in 2024, demonstrating effective debt management. Despite these strengths, there is a slight decline in cash reserves, which could be a potential risk if not managed carefully.

Cash Flow

The company's cash flow analysis shows a decline in operating cash flow from 2023 to 2024. However, the free cash flow remained steady, indicating efficient capital expenditure management. The operating cash flow to net income ratio was relatively low at 0.66, suggesting potential room for improvement in cash generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
887.78M	631.78M	630.55M	650.99M	660.29M
	Gross Profit
887.78M	797.32M	630.55M	650.99M	660.29M
	EBIT
-652.83M	195.92M	271.82M	222.83M	103.49M
	EBITDA
0.00	197.45M	254.05M	266.00M	138.12M
	Net Income Common Stockholders
195.46M	144.68M	166.07M	175.89M	83.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	1.13B	2.11B	4.26B	1.98B
	Total Assets
18.03B	17.36B	16.99B	16.81B	14.93B
	Total Debt
538.63M	729.40M	1.14B	485.16M	474.97M
	Net Debt
340.22M	-71.95M	564.37M	-1.39B	-158.23M
	Total Liabilities
15.36B	15.06B	14.85B	14.60B	474.97M
	Stockholders Equity
2.68B	2.30B	2.14B	2.21B	2.13B
Cash Flow		Free Cash Flow
129.43M	126.92M	559.21M	122.14M	53.97M
	Operating Cash Flow
129.43M	148.55M	574.04M	142.66M	82.24M
	Investing Cash Flow
-298.04M	-55.40M	-2.04B	-660.00M	-1.27B
	Financing Cash Flow
459.30M	132.21M	167.64M	1.76B	1.40B

Renasant Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNST, the sentiment is Negative. The current price of 29.36 is below the 20-day moving average (MA) of 33.95, below the 50-day MA of 35.83, and below the 200-day MA of 34.18, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 24.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNST.

Renasant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$4.99B	12.49	10.38%	3.04%	8.83%	3.77%
PNFP	75 Outperform	$6.75B	14.62	7.62%	1.03%	14.99%	-16.42%
SFBS	70 Neutral	$3.86B	17.01	14.87%	1.75%	16.28%	9.61%
RNST	69 Neutral	$2.79B	8.98	7.86%	3.00%	16.70%	27.09%
Sector *	63 Neutral	$12.86B	9.17	9.14%	4.78%	16.41%	-10.11%
UBSI	61 Neutral	$4.54B	11.50	7.62%	4.68%	6.80%	1.48%
FHN	58 Neutral	$8.33B	11.96	8.70%	3.70%	4.56%	-13.90%

Renasant Corporate Events

Renasant Completes Merger with The First Bancshares

On April 1, 2025, Renasant Corporation completed its merger with The First Bancshares, Inc., with Renasant continuing as the surviving corporation. The merger also involved the integration of The First Bank into Renasant Bank. As a result of the merger, Renasant assumed subordinated debentures and notes totaling $133,786,000 and expanded its board of directors to include members from The First. The transition in leadership will see Kevin D. Chapman assume the role of CEO, while E. Robinson McGraw will resign as an officer but remain Chairman of the Board. The integration of The First’s operations is expected to be completed by early August 2025.

Renasant Corporation to Present at 2025 Investor Conferences

Renasant Corporation will present to investors at various conferences in early 2025, sharing materials related to their operations and financial outlook. The company emphasizes caution regarding forward-looking statements, citing risks such as integration challenges from its proposed merger with The First Bancshares, Inc., economic conditions, and regulatory changes, which could impact its future performance and stakeholder interests.

Renasant Corporation Reports Q4 2024 Earnings and Merger Plans

Renasant Corporation, a financial services company, announced its earnings for the fourth quarter of 2024 on January 28, 2025. The company’s net income for the quarter was $44.7 million, with a diluted EPS of $0.70 and adjusted diluted EPS of $0.73. Net interest income increased slightly to $135.5 million, while noninterest income saw a decrease due to a previous gain on the sale of an insurance agency. The company’s credit quality showed improvement, with nonperforming loans decreasing and a provision for credit losses of $2.6 million recorded for the quarter. The company is also focused on its strategic merger with The First Bancshares, Inc., aiming to integrate and grow its operations through the acquisition.