AIM:RNWH

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Executive Summary

Renew Holdings plc operates as a contractor in the field of engineering services and specialist building in the United Kingdom. More Details


Snowflake Analysis

Proven track record with adequate balance sheet.


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

Stable Share Price: RNWH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

RNWH

2.1%

GB Construction

-0.4%

GB Market


1 Year Return

16.1%

RNWH

-19.0%

GB Construction

-14.3%

GB Market

Return vs Industry: RNWH exceeded the UK Construction industry which returned -19% over the past year.

Return vs Market: RNWH exceeded the UK Market which returned -14.3% over the past year.


Shareholder returns

RNWHIndustryMarket
7 Day-3.2%2.1%-0.4%
30 Day4.7%-0.4%0.06%
90 Day2.3%-12.2%-2.5%
1 Year17.9%16.1%-8.1%-19.0%-10.8%-14.3%
3 Year14.4%7.1%-31.8%-46.9%-5.2%-16.7%
5 Year54.6%39.3%-21.5%-44.7%24.5%-3.6%

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?

15.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RNWH (£4.5) is trading above our estimate of fair value (£2.46)

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


Price To Earnings Ratio

PE vs Industry: RNWH is poor value based on its PE Ratio (15.2x) compared to the GB Construction industry average (9.2x).

PE vs Market: RNWH is good value based on its PE Ratio (15.2x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: RNWH is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RNWH is overvalued based on its PB Ratio (3x) compared to the GB Construction industry average (1x).


Next Steps

Future Growth

How is Renew Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNWH's forecast earnings growth (15.5% per year) is above the savings rate (1.2%).

Earnings vs Market: RNWH's earnings (15.5% per year) are forecast to grow slower than the UK market (23.7% per year).

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

Revenue vs Market: RNWH's revenue (7.3% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: RNWH's revenue (7.3% 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 (23.7%)


Next Steps

Past Performance

How has Renew Holdings performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNWH has high quality earnings.

Growing Profit Margin: RNWH's current net profit margins (3.7%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: RNWH's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: RNWH's earnings growth over the past year (7.9%) is below its 5-year average (12.8% per year).

Earnings vs Industry: RNWH earnings growth over the past year (7.9%) exceeded the Construction industry -0.5%.


Return on Equity

High ROE: RNWH's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Renew Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RNWH's short term assets (£146.6M) do not cover its short term liabilities (£182.0M).

Long Term Liabilities: RNWH's short term assets (£146.6M) exceed its long term liabilities (£64.3M).


Debt to Equity History and Analysis

Debt Level: RNWH's debt to equity ratio (41.8%) is considered high.

Reducing Debt: RNWH's debt to equity ratio has reduced from 96.8% to 41.8% over the past 5 years.

Debt Coverage: RNWH's debt is well covered by operating cash flow (87.9%).

Interest Coverage: RNWH's interest payments on its debt are well covered by EBIT (24.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.55%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RNWH'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 RNWH's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RNWH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.8yrs

Average board tenure


CEO

Paul Scott (55 yo)

3.92yrs

Tenure

UK£797,000

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 ($USD1.02M) is about average for companies of similar size in the UK market ($USD911.97K).

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


Board Members

NamePositionTenureCompensationOwnership
Paul Scott
Chief Executive & Executive Director3.92yrsUK£797.00k0.095%
£ 336.3k
Sean Wyndham-Quin
CFO, Company Secretary & Executive Director2.83yrsUK£509.00k0.018%
£ 63.0k
Andries Liebenberg
Executive Director4.5yrsUK£607.00k0.070%
£ 247.6k
David Forbes
Independent Chairman of the Board2.67yrsUK£75.00k0.045%
£ 157.5k
David Brown
Senior Independent Non-Executive Directorno dataUK£45.00k0.0090%
£ 31.7k
Shatish Dasani
Independent Non-Executive Director1.58yrsUK£30.00k0.019%
£ 67.5k
Stephanie Hazell
Non-Executive Director0.50yrno data0.0057%
£ 20.1k

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: RNWH's board of directors are not considered experienced ( 2.8 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: RNWH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

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£353.498m
  • Shares outstanding: 78.56m
  • 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 operates as a contractor in the field of engineering services and specialist building in the United Kingdom. The company provides engineering services to the energy, environmental, and i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 03:35
End of Day Share Price2020/09/21 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.