AIM:RNWH

Stock Analysis Report

Executive Summary

Renew Holdings plc provides engineering services to the energy, environmental, infrastructure, and specialist building sectors in the United Kingdom.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

RNWH

3.6%

GB Construction

-0.4%

GB Market


1 Year Return

-2.1%

RNWH

-28.7%

GB Construction

2.9%

GB Market

Return vs Industry: RNWH exceeded the UK Construction industry which returned -28.7% over the past year.

Return vs Market: RNWH underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

RNWHIndustryMarket
7 Day-2.1%3.6%-0.4%
30 Day-4.3%1.3%-1.4%
90 Day-5.3%7.1%-2.1%
1 Year0.6%-2.1%-25.9%-28.7%8.0%2.9%
3 Year2.3%-4.5%-29.9%-39.3%18.0%3.6%
5 Year32.7%19.1%-11.3%-33.2%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNWH (£3.77) is trading below our estimate of fair value (£5.62)

Significantly Below Fair Value: RNWH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RNWH is poor value based on its PE Ratio (13.4x) compared to the Construction industry average (9.6x).

PE vs Market: RNWH is good value based on its PE Ratio (13.4x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: RNWH is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: RNWH is overvalued based on its PB Ratio (3.5x) compared to the GB Construction industry average (1.3x).


Next Steps

Future Growth

How is Renew Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNWH's forecast earnings growth (15.3% per year) is above the savings rate (1.2%).

Earnings vs Market: RNWH's earnings (15.3% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: RNWH's earnings are forecast to grow, but not significantly.

Revenue vs Market: RNWH's revenue (5.3% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: RNWH's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNWH's Return on Equity is forecast to be high in 3 years time (28.8%)


Next Steps

Past Performance

How has Renew Holdings performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RNWH's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: RNWH's earnings growth over the past year (72.8%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: RNWH earnings growth over the past year (72.8%) exceeded the Construction industry -9.7%.


Return on Equity

High ROE: RNWH's Return on Equity (25.3%) is considered high.


Return on Assets

ROA vs Industry: RNWH has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: RNWH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Renew Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RNWH's short term assets (£131.3M) do not cover its short term liabilities (£181.4M)

Long Term Liabilities: RNWH's short term assets (131.3M) exceeds its long term liabilities (30.8M)


Debt to Equity History and Analysis

Debt Level: RNWH's debt to equity ratio (32%) is considered satisfactory

Reducing Debt: RNWH's debt to equity ratio has increased from 1.7% to 32% over the past 5 years.

Debt Coverage: RNWH's debt is well covered by operating cash flow (111.9%).

Interest Coverage: RNWH's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet

Inventory Level: RNWH has a low level of unsold assets or inventory.

Debt Coverage by Assets: RNWH's debt is covered by short term assets (assets are 5.000220x debt).


Next Steps

Dividend

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

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.0%markettop25%5.4%industryaverage4.3%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RNWH's dividend (2.65%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: RNWH's dividend (2.65%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: RNWH's dividends per share have been stable in the past 10 years.

Growing Dividend: RNWH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), RNWH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RNWH's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

What is the CEO of Renew Holdings's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average board tenure


CEO

Paul Scott (54yo)

3yrs

Tenure

UK£663,000

Compensation

Mr. Paul Scott has been the Chief Executive of Renew Holdings Plc since October 1, 2016 and has been its Executive Director since July 21, 2014. Mr. Scott served as Engineering Services Director at Renew H ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD853.42K) is about average for companies of similar size in the UK market ($USD875.35K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Board Age and Tenure

2.2yrs

Average Tenure

55yo

Average Age

Experienced Board: RNWH's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£20,00118 Oct 19
Paul Scott
EntityIndividual
Role
Chief Executive Officer
Chief Executive & Executive Director
Shares5,450
Max PriceUK£3.67
BuyUK£20,00118 Oct 19
Andries Liebenberg
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,450
Max PriceUK£3.67
BuyUK£10,00118 Oct 19
Sean Wyndham-Quin
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Executive Director
Shares2,725
Max PriceUK£3.67

Ownership Breakdown


Management Team

  • Paul Scott (54yo)

    Chief Executive & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£663.00k
  • Sean Wyndham-Quin (39yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£373.55k

Board Members

  • David Forbes (59yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: UK£62.00k
  • David Brown (59yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£42.00k
  • Paul Scott (54yo)

    Chief Executive & Executive Director

    • Tenure: 3yrs
    • Compensation: UK£663.00k
  • Andries Liebenberg (51yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: UK£564.00k
  • Shatish Dasani (56yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • Sean Wyndham-Quin (39yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£373.55k

Company Information

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


Key Information

  • Name: Renew Holdings plc
  • Ticker: RNWH
  • Exchange: AIM
  • Founded: 1786
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£283.991m
  • Shares outstanding: 75.33m
  • Website: https://www.renewholdings.com

Number of Employees


Location

  • Renew Holdings plc
  • 3175 Century Way
  • Thorpe Park
  • Leeds
  • West Yorkshire
  • LS15 8ZB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNWHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1994

Biography

Renew Holdings plc provides engineering services to the energy, environmental, infrastructure, and specialist building sectors in the United Kingdom. It offers operational support and asset care; critical  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:38
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.