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RNWH

Renew HoldingsAIM:RNWH Stock Report

Market Cap

UK£631.8m

7D

0.4%

1Y

56.2%

Updated

30 Nov, 2021

Data

Company Financials +
RNWH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance6/6
Financial Health5/6
Dividends3/6

RNWH Stock Overview

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

Renew Holdings Competitors

Van Elle Holdings

AIM:VANL

UK£49.1m

Price History & Performance

Summary of all time highs, changes and price drops for Renew Holdings
Historical stock prices
Current Share PriceUK£8.03
52 Week HighUK£8.89
52 Week LowUK£4.82
Beta0.84
1 Month Change5.24%
3 Month Change3.75%
1 Year Change56.23%
3 Year Change129.43%
5 Year Change91.65%
Change since IPO469.50%

Recent News & Updates

Oct 05
Renew Holdings plc (LON:RNWH) Shares Could Be 21% Below Their Intrinsic Value Estimate

Renew Holdings plc (LON:RNWH) Shares Could Be 21% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Renew Holdings plc ( LON:RNWH ) by taking the...

Jun 02
These 4 Measures Indicate That Renew Holdings (LON:RNWH) Is Using Debt Reasonably Well

These 4 Measures Indicate That Renew Holdings (LON:RNWH) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 20
Should You Investigate Renew Holdings plc (LON:RNWH) At UK£6.40?

Should You Investigate Renew Holdings plc (LON:RNWH) At UK£6.40?

Renew Holdings plc ( LON:RNWH ), might not be a large cap stock, but it led the AIM gainers with a relatively large...

Shareholder Returns

RNWHGB ConstructionGB Market
7D0.4%-2.9%-2.6%
1Y56.2%21.2%10.9%

Return vs Industry: RNWH exceeded the UK Construction industry which returned 25.3% over the past year.

Return vs Market: RNWH exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is RNWH's price volatile compared to industry and market?
RNWH volatility
RNWH Average Weekly Movement3.9%
Construction Industry Average Movement4.0%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RNWH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RNWH's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
17863,338Paul Scotthttps://www.renewholdings.com

Renew Holdings plc operates as a contractor in the field of engineering services and specialist building in the United Kingdom. The company provides services to the energy, environmental, rail, and infrastructure markets. It offers operational support and asset care; critical planned and reactive maintenance and renewals; civil, mechanical, and electrical engineering services; geotechnical and earthworks; plant, power, and signaling renewals; 24/7 emergency services; asset renewal and refurbishment; tunnel and shaft refurbishment, fencing, and devegetation; and in-house design services, as well as wireless telecoms installations; 3G, 4G, 5G, and Wi-Fi technologies; temporary sites and special events; and maintenance and decommissioning services.

Renew Holdings Fundamentals Summary

How do Renew Holdings's earnings and revenue compare to its market cap?
RNWH fundamental statistics
Market CapUK£631.81m
Earnings (TTM)UK£29.45m
Revenue (TTM)UK£673.22m

21.5x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNWH income statement (TTM)
RevenueUK£673.22m
Cost of RevenueUK£574.48m
Gross ProfitUK£98.74m
ExpensesUK£69.29m
EarningsUK£29.45m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)0.37
Gross Margin14.67%
Net Profit Margin4.37%
Debt/Equity Ratio16.8%

How did RNWH perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNWH (£8.03) is trading below our estimate of fair value (£9.08)

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 (21.5x) compared to the UK Construction industry average (19.8x).

PE vs Market: RNWH is poor value based on its PE Ratio (21.5x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: RNWH is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: RNWH is overvalued based on its PB Ratio (5.7x) compared to the GB Construction industry average (1.4x).


Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNWH's forecast earnings growth (13.1% per year) is above the savings rate (0.9%).

Earnings vs Market: RNWH's earnings (13.1% 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 (4.2% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: RNWH's revenue (4.2% 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 (24.5%)


Past Performance

How has Renew Holdings performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNWH has high quality earnings.

Growing Profit Margin: RNWH's current net profit margins (4.4%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: RNWH's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: RNWH's earnings growth over the past year (31.2%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: RNWH earnings growth over the past year (31.2%) exceeded the Construction industry -7.7%.


Return on Equity

High ROE: RNWH's Return on Equity (26.4%) is considered high.


Financial Health

How is Renew Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RNWH's short term assets (£156.6M) do not cover its short term liabilities (£238.7M).

Long Term Liabilities: RNWH's short term assets (£156.6M) exceed its long term liabilities (£17.1M).


Debt to Equity History and Analysis

Debt Level: RNWH's net debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: RNWH's debt to equity ratio has reduced from 40.4% to 16.8% over the past 5 years.

Debt Coverage: RNWH's debt is well covered by operating cash flow (237.1%).

Interest Coverage: RNWH's interest payments on its debt are well covered by EBIT (40x coverage).


Balance Sheet


Dividend

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

1.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNWH's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: RNWH's dividend (1.2%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: RNWH's dividend payments have been volatile 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 (35.1%), 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 (30.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Paul Scott (56 yo)

5.08yrs

Tenure

UK£833,000

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 ($USD1.10M) is about average for companies of similar size in the UK market ($USD1.03M).

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


Board Members

Experienced Board: RNWH's board of directors are considered experienced (3.9 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

Renew Holdings plc's 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£631.811m
  • Shares outstanding: 78.68m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:37
End of Day Share Price2021/11/30 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.