ENXTPA:RNO

Stock Analysis Report

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Executive Summary

Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Renault's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RNO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

28.3%

RNO

12.4%

FR Auto

9.2%

FR Market


1 Year Return

-51.7%

RNO

-9.5%

FR Auto

-2.3%

FR Market

Return vs Industry: RNO underperformed the French Auto industry which returned -11.5% over the past year.

Return vs Market: RNO underperformed the French Market which returned -2.4% over the past year.


Shareholder returns

RNOIndustryMarket
7 Day28.3%12.4%9.2%
30 Day48.0%16.8%14.1%
90 Day31.9%10.2%5.8%
1 Year-48.4%-51.7%-4.4%-9.5%-0.6%-2.3%
3 Year-64.2%-69.2%-3.8%-12.5%11.4%2.5%
5 Year-67.2%-72.6%-22.2%-33.5%31.9%15.0%

Price Volatility Vs. Market

How volatile is Renault's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Renault undervalued compared to its fair value and its price relative to the market?

0.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RNO (€25.93) is trading above our estimate of fair value (€11.25)

Significantly Below Fair Value: RNO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RNO is unprofitable, so we can't compare its PE Ratio to the Auto industry average.

PE vs Market: RNO is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RNO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNO is good value based on its PB Ratio (0.2x) compared to the XE Auto industry average (0.7x).


Next Steps

Future Growth

How is Renault forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

48.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.6%).

Earnings vs Market: RNO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RNO's is expected to become profitable in the next 3 years.

Revenue vs Market: RNO's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: RNO's revenue is forecast to decline over the next 3 years (-2.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNO's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Renault performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNO is currently unprofitable.

Growing Profit Margin: RNO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNO is unprofitable, and losses have increased over the past 5 years at a rate of -0.9% per year.

Accelerating Growth: Unable to compare RNO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RNO is unprofitable, making it difficult to compare its past year earnings growth to the Auto industry (-9.3%).


Return on Equity

High ROE: RNO has a negative Return on Equity (0.053%), as it is currently unprofitable.


Next Steps

Financial Health

How is Renault's financial position?


Financial Position Analysis

Short Term Liabilities: RNO's short term assets (€73.8B) exceed its short term liabilities (€72.0B).

Long Term Liabilities: RNO's short term assets (€73.8B) exceed its long term liabilities (€14.9B).


Debt to Equity History and Analysis

Debt Level: RNO's debt to equity ratio (164.9%) is considered high.

Reducing Debt: RNO's debt to equity ratio has increased from 146.8% to 164.9% over the past 5 years.

Debt Coverage: RNO's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: RNO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Renault's current dividend yield, its reliability and sustainability?

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNO's dividend (4.24%) is higher than the bottom 25% of dividend payers in the French market (1.64%).

High Dividend: RNO's dividend (4.24%) is low compared to the top 25% of dividend payers in the French market (4.77%).


Stability and Growth of Payments

Stable Dividend: RNO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RNO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: RNO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RNO's dividends in 3 years are forecast to be thoroughly covered by earnings (12.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Clotilde Delbos (52yo)

0.67

Tenure

€125,460

Compensation

Ms. Clotilde Delbos serves as Interim Chief Executive Officer at Renault SA since October 11, 2019. She is Chief Financial Officer at Renault Société Anonym since April 25, 2016. Ms. Delbos served as Senio ...


CEO Compensation Analysis

Compensation vs Market: Clotilde's total compensation ($USD141.99K) is below average for companies of similar size in the French market ($USD3.31M).

Compensation vs Earnings: Insufficient data to compare Clotilde's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Clotilde Delbos
Group CFO & Interim CEO0.67yr€125.46kno data
Thierry Huon
Investor Relations Directorno datano datano data
Jean-Benoit Devauges
Senior Vice President of Legal & Public Affairs2.33yrsno datano data
Florence De Goldfiem
Director of Communication5.17yrsno datano data
Denis Le Vot
Group Executive Vice President of Regions0.42yrno datano data
Xavier Martinet
Senior Vice President of Global Marketing0.50yrno datano data
François Roger
Group EVP of Human Resourcesno datano datano data
Rudolphe Lambert
Managing Director of Europcarno datano datano data
Louis Schweitzer
Honorary Presidentno data€83.03kno data
Rémi Deconinck
Managing Director of Sport Technologies Department25.42yrsno datano data

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: RNO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jacques Daniel
Chairman & CEO of Dongfeng Renault Automotive Companyno datano datano data
Véronique Sarlat-Depotte
Alliance Global EVP of Purchasing and Chairman & CEO of the Alliance Purchasing Organizationno datano datano data
Christian Pouillaude
Brand Director & Member of Advisory Board7.42yrsno datano data
Jean-Dominique Senard
Chairman of the Board1.42yrsno data0.00063% 44.0k
Pascale Sourisse
Independent Director10.17yrs€88.66k0.00037% 25.8k
Bernard Rey
Chairman of Renault Sport & Renault F1 Teamno datano datano data
Pierre Fleuriot
Lead Independent Director0.92yr€104.81k0.000040% 2.8k
Patrick Thomas
Independent Director6.17yrs€91.08k0.000040% 2.8k
Carlos Tavares
Chairman of Advisory Board7.42yrsno datano data
Bernard Ollivier
Member of Advisory Board7.42yrsno datano data

7.4yrs

Average Tenure

66yo

Average Age

Experienced Board: RNO's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Renault SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renault SA
  • Ticker: RNO
  • Exchange: ENXTPA
  • Founded: 1898
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: €6.981b
  • Shares outstanding: 269.21m
  • Website: https://www.group.renault.com

Number of Employees


Location

  • Renault SA
  • 13-15 quai Le Gallo
  • Boulogne-Billancourt
  • Ile-de-France
  • 92109
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNLENXTPA (Euronext Paris)PTG CERTS(9% MIN)EUR152.45FREURJan 1992
RNOENXTPA (Euronext Paris)YesOrdinary SharesFREURNov 1994
RNLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1994
RNSD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1994
0NQFLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1994
RNOBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1994
RNLXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 1994
RNOPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1994
RNOSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1994
RNOWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1994
RNO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1994
RNLS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2014
RNL1DB (Deutsche Boerse AG)UNSPONSORED ADRDEEURNov 2014
RNL1XTRA (XETRA Trading Platform)UNSPONSORED ADRDEEURNov 2014

Biography

Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally. The company operates through Automotive, AVTOVAZ, and Sales Financing segments. It offers passenger and light commercial, and electric vehicles primarily under the Renault, Dacia, Renault Samsung Motors, Alpine, and LADA, as well as under the Nissan, Datsun, and Infiniti brands. The company also sells powertrains and used vehicles, as well as spare parts; and provides various services, including 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; provides 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., as well as manual or electric swivel seats. Renault SA has a strategic agreement with Ferrovial SA to extend an electric car sharing service to Paris. The company was founded in 1898 and is based in Boulogne-Billancourt, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/07 00:25
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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 here.