LSE:RSW

Stock Analysis Report

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Market Cap

UK£3.8b

Last Updated

2021/08/03 20:59 UTC

Data Sources

Company Financials +

Executive Summary

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

5.7%

RSW

4.7%

GB Electronic

1.6%

GB Market


1 Year Return

6.5%

RSW

35.1%

GB Electronic

21.5%

GB Market

Return vs Industry: RSW underperformed the UK Electronic industry which returned 31.5% over the past year.

Return vs Market: RSW underperformed the UK Market which returned 25.9% over the past year.


Shareholder returns

RSWIndustryMarket
7 Day5.7%4.7%1.6%
30 Day3.2%6.1%0.2%
90 Day-16.5%6.9%1.9%
1 Year6.8%6.5%37.0%35.1%26.8%21.5%
3 Year-0.04%-2.8%61.3%55.4%13.9%1.4%
5 Year109.3%97.7%138.0%123.0%39.7%14.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

83.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RSW (£52.3) is trading above our estimate of fair value (£20.11)

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


Price To Earnings Ratio

PE vs Industry: RSW is poor value based on its PE Ratio (83.9x) compared to the UK Electronic industry average (37.7x).

PE vs Market: RSW is poor value based on its PE Ratio (83.9x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: RSW is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: RSW is overvalued based on its PB Ratio (6.1x) compared to the GB Electronic industry average (2.9x).


Future Growth

How is Renishaw forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSW's forecast earnings growth (13% per year) is above the savings rate (0.9%).

Earnings vs Market: RSW's earnings (13% per year) are forecast to grow slower than the UK market (27.7% per year).

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

Revenue vs Market: RSW's revenue (8.3% per year) is forecast to grow faster than the UK market (-149.2% per year).

High Growth Revenue: RSW's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSW's Return on Equity is forecast to be low in 3 years time (15.1%).


Past Performance

How has Renishaw performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSW has a large one-off loss of £36.4M impacting its December 31 2020 financial results.

Growing Profit Margin: RSW's current net profit margins (9%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: RSW's earnings have declined by 12% per year over the past 5 years.

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

Earnings vs Industry: RSW had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Electronic industry average (8.3%).


Return on Equity

High ROE: RSW's Return on Equity (7.3%) is considered low.


Financial Health

How is Renishaw's financial position?


Financial Position Analysis

Short Term Liabilities: RSW's short term assets (£422.9M) exceed its short term liabilities (£91.4M).

Long Term Liabilities: RSW's short term assets (£422.9M) exceed its long term liabilities (£79.9M).


Debt to Equity History and Analysis

Debt Level: RSW's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: RSW's debt to equity ratio has increased from 0.05% to 1.8% over the past 5 years.

Debt Coverage: RSW's debt is well covered by operating cash flow (1261.2%).

Interest Coverage: RSW's interest payments on its debt are well covered by EBIT (183.6x coverage).


Balance Sheet


Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RSW's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: RSW's dividend (0.54%) is low compared to the top 25% of dividend payers in the UK market (3.91%).


Stability and Growth of Payments

Stable Dividend: RSW is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: RSW is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

8.5yrs

Average management tenure


CEO

Will Lee

3.5yrs

Tenure

UK£601,000

Compensation

Mr. William Lee, also known as Will, has been the Chief Executive of Renishaw plc since February 2018 and has been its Member of the Executive Board since December 2015. Mr. Lee is responsible for the prod...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD835.12K) is below average for companies of similar size in the UK market ($USD2.22M).

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


Leadership Team

Experienced Management: RSW's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: RSW's board of directors are considered experienced (8.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Renishaw plc
  • Ticker: RSW
  • Exchange: LSE
  • Founded: 1973
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£3.806b
  • Shares outstanding: 72.78m
  • Website: https://www.renishaw.com

Number of Employees


Location

  • Renishaw plc
  • New Mills
  • Wotton-under-Edge
  • Gloucestershire
  • GL12 8JR
  • United Kingdom

Listings


Biography

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. The company offers co-ordinate measuring...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 20:59
End of Day Share Price2021/08/03 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.