Renasant (RNST) AI Stock Analysis

• Market Cap: $3.55B
• Dividend Yield: 2.39%
• Average Volume (3M): 511.02K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.07
• Revenue Growth: 21.87%
• EPS Growth: -3.27%
• Country: US
• Employees: 2,200
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.01
• Shares Outstanding: 95,019,325
• 10 Day Avg. Volume: 539,863
• 30 Day Avg. Volume: 511,022
• PEG Ratio: 0.39
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 18.33
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: 17.53
• 1Y Price Target: $43.80
• Price Target Upside: 18.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $44.00 ▲(19.31% Upside)

Renasant's overall score is driven by strong financial growth and successful merger integration, as highlighted in the earnings call. The technical analysis supports a bullish trend, while valuation remains reasonable. However, challenges in profitability margins and cash flow performance slightly offset these positives.

Renasant Business Overview & Revenue Model

Company Description

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

How the Company Makes Money

Renasant generates revenue through multiple key streams, primarily through net interest income and non-interest income. Net interest income is earned from the difference between the interest income generated from loans and the interest expense on deposits and other borrowings. The company offers various loan products, including commercial loans, consumer loans, and residential mortgages, which contribute significantly to its interest income. Additionally, Renasant earns non-interest income through fees for services such as asset management, trust services, and transaction fees related to deposit accounts. The bank's strategic partnerships and community-focused approach enhance customer loyalty, driving growth in deposits and loans, which are crucial for its revenue generation. Moreover, Renasant's expansion efforts and acquisitions can also play a significant role in increasing its overall earnings.

Renasant Financial Statement Overview

Summary

Renasant shows strong revenue growth and a stable balance sheet with low leverage. However, declining profit margins and weakening cash flow performance indicate challenges in maintaining profitability and cash generation.

Income Statement

Renasant's income statement shows a strong revenue growth rate of 12.81% TTM, indicating robust top-line expansion. However, the gross profit margin has declined from previous years, and the net profit margin has decreased to 13.61% TTM from 18.83% in 2024. The EBIT and EBITDA margins have also contracted, suggesting increased operational costs or competitive pressures. Overall, the company demonstrates solid revenue growth but faces challenges in maintaining profitability margins.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.25 TTM, indicating prudent leverage management. The return on equity has decreased to 5.40% TTM, which is a concern compared to previous years. However, the equity ratio remains strong, suggesting a solid capital structure. The company maintains a healthy balance sheet with low leverage, though profitability on equity has weakened.

Cash Flow

Renasant's cash flow statement shows a decline in free cash flow growth by 22.47% TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is 0.35, suggesting limited cash conversion efficiency. Despite a high free cash flow to net income ratio of 0.85, the overall cash flow performance is weakened by declining free cash flow growth and lower operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.04B	909.77M	691.06M	695.67M	731.62M
Gross Profit	682.30M	653.18M	616.19M	606.68M	653.15M	573.44M
EBITDA	229.81M	277.25M	212.42M	254.05M	270.18M	138.12M
Net Income	159.74M	195.46M	144.68M	166.07M	175.89M	83.65M
Balance Sheet
Total Assets	26.62B	18.03B	17.36B	16.99B	16.81B	14.93B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.92B	1.72B	2.11B	4.26B	1.98B
Total Debt	962.32M	538.63M	736.98M	1.14B	485.16M	496.31M
Total Liabilities	22.85B	15.36B	15.06B	14.85B	14.60B	12.80B
Stockholders Equity	3.78B	2.68B	2.30B	2.14B	2.21B	2.13B
Cash Flow
Free Cash Flow	120.44M	115.78M	126.92M	559.21M	122.14M	53.97M
Operating Cash Flow	142.31M	129.43M	148.55M	574.04M	142.66M	82.24M
Investing Cash Flow	-516.74M	-298.04M	-55.40M	-2.04B	-660.00M	-1.27B
Financing Cash Flow	901.13M	459.30M	132.21M	167.64M	1.76B	1.40B

Renasant Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNST, the sentiment is Neutral. The current price of 36.88 is below the 20-day moving average (MA) of 38.23, below the 50-day MA of 37.60, and above the 200-day MA of 35.39, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNST.

Renasant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	79 Outperform	$3.54B	16.03	6.13%	3.30%	3.67%	-10.83%
UCB	77 Outperform	$3.87B	14.45	7.56%	3.05%	3.00%	42.78%
RNST	76 Outperform	$3.55B	14.76	5.21%	2.39%	21.87%	-3.27%
TCBI	73 Outperform	$3.96B	34.40	3.82%	―	6.86%	-8.81%
FULT	71 Outperform	$3.44B	11.07	9.73%	3.76%	17.61%	1.89%
EBC	60 Neutral	$3.88B	-58.02	-1.71%	2.73%	4.80%	-111.49%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Renasant Corporate Events

Renasant Completes Merger with The First Bancshares

In the second quarter of 2025, Renasant Corporation completed its merger with The First Bancshares, Inc., significantly expanding its asset base and operational footprint. The merger resulted in net organic loan growth and deposit growth, despite incurring significant merger-related expenses. The company’s net income was impacted by these expenses and provisions for credit losses, but it achieved an adjusted diluted EPS of $0.69. The merger positions Renasant for enhanced competitive positioning in the financial services industry, although it faces challenges such as integrating acquisitions and managing economic and regulatory risks.

Renasant Reports Q2 2025 Earnings Post-Merger Completion

On July 22, 2025, Renasant Corporation announced its earnings for the second quarter of 2025, highlighting the completion of its merger with The First Bancshares, Inc. on April 1, 2025. The merger significantly impacted Renasant’s financials, with net income reported at $1.0 million, including substantial merger-related expenses and acquisition provisions. The merger contributed to increased net interest income and noninterest income, as well as organic growth in loans and deposits. Despite a decrease in book value per share due to the merger, the company reported progress in integrating the acquired operations and achieving cost savings.