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Market Cap

UK£52.1m

Last Updated

2021/04/15 18:45 UTC

Data Sources

Company Financials

Executive Summary

Renold plc manufactures and sells high precision engineered power transmission products in the United Kingdom, rest of Europe, Americas, Australasia, China, India, and internationally. More Details


Snowflake Analysis

Good value with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RNO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RNO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

15.5%

RNO

-0.6%

GB Machinery

0.8%

GB Market


1 Year Return

189.7%

RNO

51.3%

GB Machinery

28.9%

GB Market

Return vs Industry: RNO exceeded the UK Machinery industry which returned 62.1% over the past year.

Return vs Market: RNO exceeded the UK Market which returned 30.5% over the past year.


Shareholder returns

RNOIndustryMarket
7 Day15.5%-0.6%0.8%
30 Day0.4%2.1%3.4%
90 Day59.3%5.9%5.1%
1 Year189.7%189.7%54.7%51.3%34.1%28.9%
3 Year-2.1%-2.1%46.4%36.6%17.7%4.1%
5 Year-46.1%-46.1%127.9%101.0%46.6%19.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNO (£0.23) is trading below our estimate of fair value (£3.96)

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


Price To Earnings Ratio

PE vs Industry: RNO is good value based on its PE Ratio (16.8x) compared to the GB Machinery industry average (32.8x).

PE vs Market: RNO is good value based on its PE Ratio (16.8x) compared to the UK market (25.7x).


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 has negative assets, so we can't compare its PB Ratio to the GB Machinery industry average.


Future Growth

How is Renold forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Renold has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Renold performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNO has a large one-off loss of £1.6M impacting its September 30 2020 financial results.

Growing Profit Margin: RNO's current net profit margins (1.8%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: RNO's earnings have declined by 5.8% per year over the past 5 years.

Accelerating Growth: RNO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RNO had negative earnings growth (-54.3%) over the past year, making it difficult to compare to the Machinery industry average (-12%).


Return on Equity

High ROE: RNO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Renold's financial position?


Financial Position Analysis

Short Term Liabilities: RNO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RNO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RNO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RNO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: RNO's debt is well covered by operating cash flow (47.2%).

Interest Coverage: RNO's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

What is Renold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RNO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RNO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RNO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RNO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RNO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Rob Purcell (58 yo)

8.25yrs

Tenure

UK£378,000

Compensation

Mr. Robert Purcell, also known as Rob, has been the Chief Executive of Renold plc since January 21, 2013. Mr. Purcell served as Managing Director of Protection and Finishing products of Filtrona plc until ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD519.27K) is above average for companies of similar size in the UK market ($USD331.78K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RNO's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: RNO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Renold plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renold plc
  • Ticker: RNO
  • Exchange: AIM
  • Founded: 1864
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£52.072m
  • Shares outstanding: 225.42m
  • Website: https://www.renold.com

Number of Employees


Location

  • Renold plc
  • Trident 2
  • Trident Business Park
  • Manchester
  • Greater Manchester
  • M22 5XB
  • United Kingdom

Listings


Biography

Renold plc manufactures and sells high precision engineered power transmission products in the United Kingdom, rest of Europe, Americas, Australasia, China, India, and internationally. The company operates...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 18:45
End of Day Share Price2021/04/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.