Renewi plc provides waste-to-product services in the Netherlands, Belgium, the United Kingdom, Germany, France, Portugal, Canada, Hungary, and Luxembourg.
The last earnings update was 168 days ago.
Discounted Cash Flow Calculation for DB:1K5 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:1K5 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Renewi's share price is below the future cash flow value, and at a moderate discount (> 20%).
Renewi's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Renewi's earnings available for a low price, and how does
this compare to other companies in the same industry?
Renewi's earnings are expected to grow significantly at over 20% yearly.
Renewi's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Renewi's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Otto de Bont, MSC has been the Chief Executive Officer at Renewi plc since April 1, 2019 and has been its Director since 2019. Mr. de Bont was Managing Director of Netherlands Commercial Division at Renewi plc since May 2017 until April 2019. Prior to his appointment at Renewi, Mr. de Bont worked for a number of blue-chip companies including United Technologies and the Plastics and Security divisions of General Electric. Most recently, he spent six years at United Technologies in various managerial positions culminating in his role as President of the Fire & Security Field Continental Europe.
Insufficient data for Otto to compare compensation growth.
Insufficient data for Otto to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Renewi management team is about average.
CFO & Director
Otto de Bont
CEO & Director
Group Product Sales Director
Director of Human Resources
Managing Director of Dutch Hazardous Waste Business
Managing Director of Municipal
Managing Director of Belgium Commercial
MD of Monostreams & Group Continuous Improvement Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Renewi board of directors is less than 3 years, this suggests a new board.
Board of Directors
CFO & Director
Otto de Bont
CEO & Director
Senior Independent Director
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Renewi insiders in the past 3 months.
Renewi plc provides waste-to-product services in the Netherlands, Belgium, the United Kingdom, Germany, France, Portugal, Canada, Hungary, and Luxembourg. The company operates through Commercial Waste, Hazardous Waste, Monostreams, and Municipal segments. It is involved in the collection and treatment of commercial waste; industrial cleaning and treatment of hazardous waste; and operation of waste management facilities under long-term municipal contracts, as well as waste recycling activities. The company also produces materials from waste streams, such as glass bottlebanks, discarded electrical and electronic equipment, source separated organics, minerals, and incinerators’ bottom ashes. In addition, it provides clean water and soil, and inert ash. Renewi plc serves production factories, offices, hospitals, retail, shops, and restaurants; heavy industry, petrochemical sites, oil and gas production, and the food industry; and building and construction markets. The company was formerly known as Shanks Group plc and changed its name to Renewi plc in February 2017. Renewi plc was founded in 1880 and is headquartered in Milton Keynes, the United Kingdom.
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