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RWI

RenewiLSE:RWI Stock Report

Market Cap

UK£611.5m

7D

-7.8%

1Y

130.1%

Updated

01 Dec, 2021

Data

Company Financials +
RWI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

RWI Stock Overview

Renewi plc provides waste-to-product services in the United Kingdom, the Netherlands, Belgium, France, Germany, Hungary, Portugal, Canada, and Luxembourg.

Renewi Competitors

Biffa

LSE:BIFF

UK£1.1b

Veolia Environnement

ENXTPA:VIE

€19.2b

Suez

ENXTPA:SEV

€12.6b

Fomento de Construcciones y Contratas

BME:FCC

€4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Renewi
Historical stock prices
Current Share PriceUK£7.65
52 Week HighUK£8.55
52 Week LowUK£3.20
Beta1.65
1 Month Change5.66%
3 Month Change37.59%
1 Year Change130.08%
3 Year Change97.17%
5 Year Change-13.31%
Change since IPO-58.42%

Recent News & Updates

Nov 09
At UK£8.12, Is Renewi plc (LON:RWI) Worth Looking At Closely?

At UK£8.12, Is Renewi plc (LON:RWI) Worth Looking At Closely?

Renewi plc ( LON:RWI ), is not the largest company out there, but it led the LSE gainers with a relatively large price...

Oct 05
An Intrinsic Calculation For Renewi plc (LON:RWI) Suggests It's 47% Undervalued

An Intrinsic Calculation For Renewi plc (LON:RWI) Suggests It's 47% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Renewi plc ( LON:RWI...

Shareholder Returns

RWIGB Commercial ServicesGB Market
7D-7.8%-1.7%-2.6%
1Y130.1%20.9%10.9%

Return vs Industry: RWI exceeded the UK Commercial Services industry which returned 22.3% over the past year.

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

Price Volatility

Is RWI's price volatile compared to industry and market?
RWI volatility
RWI Average Weekly Movement5.9%
Commercial Services Industry Average Movement4.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RWI is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RWI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18806,586Otto de Bonthttps://www.renewi.com/en

Renewi plc provides waste-to-product services in the United Kingdom, the Netherlands, Belgium, France, Germany, Hungary, Portugal, Canada, and Luxembourg. The company operates through Commercial Waste, MIneralz & Water, and Specialities segments. It is involved in the collection and treatment of commercial waste; industrial cleaning and treatment of hazardous waste; and operation of waste management facilities under long-term municipal contracts.

Renewi Fundamentals Summary

How do Renewi's earnings and revenue compare to its market cap?
RWI fundamental statistics
Market Cap€719.05m
Earnings (TTM)€43.90m
Revenue (TTM)€1.79b

16.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RWI income statement (TTM)
Revenue€1.79b
Cost of Revenue€1.46b
Gross Profit€323.20m
Expenses€279.30m
Earnings€43.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.55
Gross Margin18.08%
Net Profit Margin2.46%
Debt/Equity Ratio172.8%

How did RWI perform over the long term?

See historical performance and comparison

Valuation

Is Renewi 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: RWI (£7.64) is trading below our estimate of fair value (£55.78)

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


Price To Earnings Ratio

PE vs Industry: RWI is good value based on its PE Ratio (16.4x) compared to the UK Commercial Services industry average (44.3x).

PE vs Market: RWI is good value based on its PE Ratio (16.4x) compared to the UK market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RWI's PB Ratio (2.5x) is in line with the GB Commercial Services industry average.


Future Growth

How is Renewi forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWI's forecast earnings growth (19.1% per year) is above the savings rate (0.9%).

Earnings vs Market: RWI's earnings (19.1% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: RWI's revenue (2.9% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: RWI's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RWI's Return on Equity is forecast to be high in 3 years time (20%)


Past Performance

How has Renewi performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWI has a large one-off loss of €23.3M impacting its September 30 2021 financial results.

Growing Profit Margin: RWI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RWI has become profitable over the past 5 years, growing earnings by 21.8% per year.

Accelerating Growth: RWI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RWI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (29.3%).


Return on Equity

High ROE: RWI's Return on Equity (15.2%) is considered low.


Financial Health

How is Renewi's financial position?


Financial Position Analysis

Short Term Liabilities: RWI's short term assets (€400.7M) do not cover its short term liabilities (€714.8M).

Long Term Liabilities: RWI's short term assets (€400.7M) do not cover its long term liabilities (€978.0M).


Debt to Equity History and Analysis

Debt Level: RWI's net debt to equity ratio (134.7%) is considered high.

Reducing Debt: RWI's debt to equity ratio has reduced from 212.7% to 172.8% over the past 5 years.

Debt Coverage: RWI's debt is well covered by operating cash flow (37.1%).

Interest Coverage: RWI's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Dividend

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

1.53%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RWI'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?

2.5yrs

Average management tenure


CEO

Otto de Bont

2.58yrs

Tenure

€1,193,701

Compensation

Mr. Otto de Bont, MSC has been the Chief Executive Officer and Director at Renewi plc since April 1, 2019. Mr. de Bont was Managing Director of Netherlands Commercial Division at Renewi plc since May 2017...


CEO Compensation Analysis

Compensation vs Market: Otto's total compensation ($USD1.35M) is above average for companies of similar size in the UK market ($USD1.03M).

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


Leadership Team

Experienced Management: RWI's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: RWI's board of directors are considered experienced (3.2 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

Renewi plc's employee growth, exchange listings and data sources


Key Information

  • Name: Renewi plc
  • Ticker: RWI
  • Exchange: LSE
  • Founded: 1880
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: UK£611.462m
  • Shares outstanding: 80.03m
  • Website: https://www.renewi.com/en

Number of Employees


Location

  • Renewi plc
  • Dunedin House
  • Auckland Park
  • Milton Keynes
  • Buckinghamshire
  • MK1 1BU
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 19:06
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.