Renold plc

DB:7M5 Stock Report

Market Cap: €111.7m

Renold Valuation

Is 7M5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7M5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€0.65
Fair Value
20.6% undervalued intrinsic discount
3
Number of Analysts

Below Fair Value: 7M5 (€0.52) is trading below our estimate of fair value (€0.65)

Significantly Below Fair Value: 7M5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7M5?

Key metric: As 7M5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7M5. This is calculated by dividing 7M5's market cap by their current earnings.
What is 7M5's PE Ratio?
PE Ratio6.4x
EarningsUK£14.50m
Market CapUK£93.11m

Price to Earnings Ratio vs Peers

How does 7M5's PE Ratio compare to its peers?

The above table shows the PE ratio for 7M5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.2x
TTR1 technotrans
16x23.1%€119.8m
MZX Masterflex
12.2x10.0%€95.8m
HP3A Ringmetall
9.2x14.0%€100.0m
KGR LEWAG Holding
67.3xn/a€143.5m
7M5 Renold
6.4x23.0%€93.1m

Price-To-Earnings vs Peers: 7M5 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does 7M5's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
7M5 6.4xIndustry Avg. 16.7xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7M5 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the German Machinery industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is 7M5's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7M5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: 7M5 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7M5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.52
€1.06
+104.6%
2.1%€1.08€1.03n/a3
Feb ’26€0.61
€1.06
+74.4%
2.1%€1.08€1.03n/a3
Jan ’26€0.57
€1.06
+85.0%
2.1%€1.08€1.03n/a3
Dec ’25€0.56
€1.06
+90.0%
2.1%€1.08€1.03n/a3
Nov ’25€0.57
€1.06
+83.6%
2.3%€1.08€1.03n/a2
Oct ’25€0.61
€1.06
+71.7%
2.3%€1.08€1.03n/a2
Sep ’25€0.66
€0.91
+37.9%
2.0%€0.93€0.89n/a2
Aug ’25€0.67
€0.91
+35.8%
2.0%€0.93€0.89n/a2
Jul ’25€0.65
€0.83
+28.7%
9.1%€0.91€0.75n/a2
Jun ’25€0.64
€0.83
+30.8%
9.1%€0.91€0.75n/a2
May ’25€0.54
€0.83
+53.8%
9.1%€0.91€0.75n/a2
Apr ’25€0.40
€0.68
+70.5%
1.7%€0.69€0.66n/a2
Mar ’25€0.49
€0.68
+37.2%
1.7%€0.69€0.66n/a2
Feb ’25€0.45
€0.68
+50.7%
1.7%€0.69€0.66€0.612
Jan ’25€0.38
€0.68
+79.6%
1.7%€0.69€0.66€0.572
Dec ’24€0.35
€0.68
+92.9%
1.7%€0.69€0.66€0.562
Nov ’24€0.30
€0.66
+121.7%
3.6%€0.68€0.63€0.572
Oct ’24€0.32
€0.66
+102.5%
3.6%€0.68€0.63€0.612
Sep ’24€0.32
€0.65
+106.7%
3.6%€0.68€0.63€0.662
Aug ’24€0.32
€0.65
+105.4%
3.6%€0.68€0.63€0.672
Jul ’24€0.29
€0.61
+107.5%
8.4%€0.66€0.55€0.652
Jun ’24€0.30
€0.61
+103.3%
8.4%€0.66€0.55€0.642
May ’24€0.29
€0.61
+107.5%
8.4%€0.66€0.55€0.542
Apr ’24€0.28
€0.57
+104.6%
3.0%€0.59€0.55€0.402
Mar ’24€0.28
€0.57
+104.6%
3.0%€0.59€0.55€0.492
Feb ’24€0.26
€0.56
+115.0%
1.0%€0.56€0.55€0.452
Analyst Price Target
Consensus Narrative from 3 Analysts
€0.99
Fair Value
47.2% undervalued intrinsic discount
3
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 12:12
End of Day Share Price 2025/02/14 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Renold plc is covered by 9 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael O'BrienCanaccord Genuity
Adam ForsythCantor Fitzgerald Europe
David BuxtonCavendish