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Renishaw

LSE:RSW
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RSW
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Tech
Company description

Renishaw plc, a metrology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. The last earnings update was 137 days ago. More info.


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RSW Share Price and Events
7 Day Returns
-3%
LSE:RSW
1.6%
GB Electronic
0.4%
GB Market
1 Year Returns
-32.4%
LSE:RSW
-5.2%
GB Electronic
-3.7%
GB Market
RSW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Renishaw (RSW) -3% -6.7% -10.1% -32.4% 76.1% 130.7%
GB Electronic 1.6% 2.4% 5.2% -5.2% 82.2% 80.1%
GB Market 0.4% 0.3% 0.8% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • RSW underperformed the Electronic industry which returned -5.2% over the past year.
  • RSW underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
RSW
Industry
5yr Volatility vs Market

Value

 Is Renishaw undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Renishaw to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Renishaw.

LSE:RSW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RSW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.094 (1 + (1- 19%) (0%))
1.063
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.063 * 6.65%)
8.29%

Discounted Cash Flow Calculation for LSE:RSW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Renishaw is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:RSW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.29%)
2019 75.74 Analyst x5 69.94
2020 79.82 Analyst x5 68.06
2021 93.32 Analyst x5 73.48
2022 162.80 Analyst x1 118.37
2023 201.20 Analyst x1 135.08
2024 231.68 Est @ 15.15% 143.63
2025 257.09 Est @ 10.97% 147.18
2026 277.78 Est @ 8.05% 146.84
2027 294.46 Est @ 6% 143.73
2028 307.91 Est @ 4.57% 138.79
Present value of next 10 years cash flows £1,185.08
LSE:RSW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £307.91 × (1 + 1.23%) ÷ (8.29% – 1.23%)
£4,409.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,409.99 ÷ (1 + 8.29%)10
£1,987.75
LSE:RSW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,185.08 + £1,987.75
£3,172.84
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,172.84 / 72.79
£43.59
LSE:RSW Discount to Share Price
Calculation Result
Value per share (GBP) From above. £43.59
Current discount Discount to share price of £37.62
= -1 x (£37.62 - £43.59) / £43.59
13.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Renishaw is available for.
Intrinsic value
14%
Share price is £37.62 vs Future cash flow value of £43.59
Current Discount Checks
For Renishaw to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Renishaw's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Renishaw's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Renishaw's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Renishaw's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RSW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £1.76
LSE:RSW Share Price ** LSE (2019-06-17) in GBP £37.62
United Kingdom of Great Britain and Northern Ireland Electronic Industry PE Ratio Median Figure of 21 Publicly-Listed Electronic Companies 20.87x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Renishaw.

LSE:RSW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RSW Share Price ÷ EPS (both in GBP)

= 37.62 ÷ 1.76

21.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Renishaw is overvalued based on earnings compared to the GB Electronic industry average.
  • Renishaw is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Renishaw's expected growth come at a high price?
Raw Data
LSE:RSW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
7.6%per year
United Kingdom of Great Britain and Northern Ireland Electronic Industry PEG Ratio Median Figure of 13 Publicly-Listed Electronic Companies 2.14x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:RSW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.34x ÷ 7.6%

2.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Renishaw is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Renishaw's assets?
Raw Data
LSE:RSW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £7.69
LSE:RSW Share Price * LSE (2019-06-17) in GBP £37.62
United Kingdom of Great Britain and Northern Ireland Electronic Industry PB Ratio Median Figure of 34 Publicly-Listed Electronic Companies 2.07x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:RSW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RSW Share Price ÷ Book Value per Share (both in GBP)

= 37.62 ÷ 7.69

4.9x

* Primary Listing of Renishaw.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Renishaw is overvalued based on assets compared to the GB Electronic industry average.
X
Value checks
We assess Renishaw's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Renishaw has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Renishaw expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Renishaw expected to grow at an attractive rate?
  • Renishaw's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Renishaw's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Renishaw's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RSW Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RSW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 7.6%
LSE:RSW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6.3%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Earnings Growth Rate Market Cap Weighted Average 9.3%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:RSW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RSW Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 677 148 126 8
2020-06-30 637 136 112 11
2019-06-30 587 126 98 8
LSE:RSW Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 629 121 128
2018-09-30 620 126 130
2018-06-30 612 132 132
2018-03-31 596 131 139
2017-12-31 578 129 138
2017-09-30 557 122 120
2017-06-30 537 115 103
2017-03-31 508 104 88
2016-12-31 467 93 50
2016-09-30 447 74 51
2016-06-30 427 55 52
2016-03-31 453 77 85

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Renishaw's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • Renishaw's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:RSW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Renishaw Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RSW Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 1.73 2.25 1.50 5.00
2020-06-30 1.53 1.92 1.31 6.00
2019-06-30 1.37 1.55 1.26 6.00
LSE:RSW Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 1.76
2018-09-30 1.79
2018-06-30 1.82
2018-03-31 1.91
2017-12-31 1.89
2017-09-30 1.65
2017-06-30 1.41
2017-03-31 1.22
2016-12-31 0.69
2016-09-30 0.70
2016-06-30 0.72
2016-03-31 1.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Renishaw is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Renishaw's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Renishaw has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Renishaw performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Renishaw's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Renishaw's year on year earnings growth rate has been positive over the past 5 years.
  • Renishaw's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Renishaw's 1-year earnings growth is negative, it can't be compared to the GB Electronic industry average.
Earnings and Revenue History
Renishaw's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Renishaw Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RSW Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 628.72 128.30 187.25
2018-09-30 620.11 130.32 182.60
2018-06-30 611.51 132.34 177.95
2018-03-31 596.02 139.15 174.62
2017-12-31 578.18 137.52 170.63
2017-09-30 557.50 120.20 168.63
2017-06-30 536.81 102.89 166.63
2017-03-31 507.67 88.50 161.47
2016-12-31 466.82 50.06 149.43
2016-09-30 447.02 51.15 142.52
2016-06-30 427.22 52.24 135.61
2016-03-31 453.00 84.56 136.16
2015-12-31 469.39 98.80 133.46
2015-09-30 482.06 110.35 132.29
2015-06-30 494.72 121.91 131.13
2015-03-31 455.02 116.70 123.94
2014-12-31 415.32 111.50 116.75
2014-09-30 385.41 98.86 112.35
2014-06-30 355.50 86.22 107.95
2014-03-31 346.07 69.21 107.37
2013-12-31 336.65 52.20 106.78
2013-09-30 341.77 59.92 105.63
2013-06-30 346.88 67.64 104.48
2013-03-31 352.92 74.43 102.44
2012-12-31 358.97 81.21 100.40
2012-09-30 345.43 75.38 95.96
2012-06-30 331.89 69.56 91.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Renishaw has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Renishaw used its assets more efficiently than the GB Electronic industry average last year based on Return on Assets.
  • Renishaw's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Renishaw's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Renishaw has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Renishaw's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Renishaw's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Renishaw is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Renishaw's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Renishaw's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Renishaw has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Renishaw Company Filings, last reported 5 months ago.

LSE:RSW Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 558.74 0.00 100.50
2018-09-30 558.74 0.00 100.50
2018-06-30 548.59 0.00 103.85
2018-03-31 548.59 0.00 103.85
2017-12-31 490.69 0.00 69.13
2017-09-30 490.69 0.00 69.13
2017-06-30 443.81 0.00 51.94
2017-03-31 443.81 0.00 51.94
2016-12-31 370.49 12.52 26.49
2016-09-30 370.49 12.52 26.49
2016-06-30 381.39 9.98 31.28
2016-03-31 381.39 9.98 31.28
2015-12-31 403.29 0.00 33.35
2015-09-30 403.29 0.00 33.35
2015-06-30 428.52 0.00 82.17
2015-03-31 428.52 0.00 82.17
2014-12-31 361.37 0.00 38.81
2014-09-30 361.37 0.00 38.81
2014-06-30 350.76 0.00 43.63
2014-03-31 350.76 0.00 43.63
2013-12-31 293.65 0.00 13.42
2013-09-30 293.65 0.00 13.42
2013-06-30 276.72 0.00 26.61
2013-03-31 276.72 0.00 26.61
2012-12-31 266.59 0.00 12.64
2012-09-30 266.59 0.00 12.64
2012-06-30 242.40 0.00 21.13
  • Renishaw has no debt.
  • Renishaw had no debt 5 years ago.
  • Renishaw has no debt, it does not need to be covered by operating cash flow.
  • Renishaw has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Renishaw's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Renishaw has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.59%
Current annual income from Renishaw dividends. Estimated to be 1.67% next year.
If you bought £2,000 of Renishaw shares you are expected to receive £32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Renishaw's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Renishaw's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:RSW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Electronic Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RSW Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.70 8.00
2020-06-30 0.63 11.00
2019-06-30 0.57 11.00
LSE:RSW Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-08-21 0.600 1.414
2018-07-26 0.600 1.106
2017-08-29 0.520 1.031
2017-07-27 0.520 1.189
2016-08-26 0.480 1.610
2016-07-27 0.480 1.829
2015-07-29 0.465 2.403
2014-08-22 0.412 1.963
2014-07-23 0.412 2.366
2013-07-24 0.400 2.241
2013-01-30 0.395 2.285
2012-08-24 0.385 2.177
2012-07-25 0.385 2.515
2011-08-19 0.350 2.954
2011-07-27 0.350 2.455
2010-08-23 0.176 1.295
2010-07-28 0.272 3.164
2010-01-27 0.080 1.196
2009-08-24 0.000 0.000
2009-07-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Renishaw has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Renishaw only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Renishaw's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Renishaw's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Renishaw afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Renishaw has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Will Lee
COMPENSATION £1,199,000
TENURE AS CEO 1.3 years
CEO Bio

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 product divisions, overseas sales subsidiaries and human resources. He serves as a Member of International Sales and Marketing Board (ISMB) at Renishaw plc. Mr. Lee serves as Chair of Executive Board at Renishaw plc. He was Group Sales and Marketing Director of Renishaw plc since December 2015 and has been its Director since August 1, 2016. He joined Renishaw in 1997. He served as Divisional Director and General Manager for The Laser and Calibration Products Line at Renishaw plc since 2007 and served as its General Manager of The Machine Tool Products Line since 2014. Mr. Lee joined the Renishaw graduate scheme in 1996. He holds a degree in physics from Oxford University and an MBA from Bath University.

CEO Compensation
  • Will's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Will's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Renishaw management team in years:

1.4
Average Tenure
64.5
Average Age
  • The average tenure for the Renishaw management team is less than 2 years, this suggests a new team.
Management Team

David McMurtry

TITLE
Co-Founder
COMPENSATION
£1M
AGE
78

Will Lee

TITLE
Chief Executive
COMPENSATION
£1M
TENURE
1.3 yrs

David Deer

TITLE
Co-Founder
COMPENSATION
£871K
AGE
80
TENURE
46.4 yrs

Allen C. Roberts

TITLE
Group Finance Director
COMPENSATION
£1M
AGE
69

Geoff McFarland

TITLE
Group Engineering Director
COMPENSATION
£1M
AGE
50

Dave Wallace

TITLE
GM of CMM Products Dvision
AGE
47
TENURE
11.4 yrs

Leo Somerville

TITLE
President of Renishaw North America & Member of Executive Board
AGE
60
TENURE
15.4 yrs

Mark Moloney

TITLE
Member of the Executive Board
TENURE
1.3 yrs

Gareth Hankins

TITLE
Director of Group Manufacturing Services Division & Member of the Executive Board
TENURE
1.3 yrs

Mark Noble

TITLE
General Counsel & Company Secretary
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Renishaw board of directors in years:

6.4
Average Tenure
68
Average Age
  • The tenure for the Renishaw board of directors is about average.
Board of Directors

David McMurtry

TITLE
Co-Founder
COMPENSATION
£1M
AGE
78

Will Lee

TITLE
Chief Executive
COMPENSATION
£1M
TENURE
2.8 yrs

David Deer

TITLE
Co-Founder
COMPENSATION
£871K
AGE
80

Allen C. Roberts

TITLE
Group Finance Director
COMPENSATION
£1M
AGE
69
TENURE
39.4 yrs

Geoff McFarland

TITLE
Group Engineering Director
COMPENSATION
£1M
AGE
50
TENURE
16.9 yrs

Sean Hymas

TITLE
President & Representative Director of Renishaw KK
AGE
52

Carol Chesney

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
55
TENURE
6.7 yrs

Catherine Glickman

TITLE
Non-Executive Director
AGE
60
TENURE
0.8 yrs

David Grant

TITLE
Senior Independent Director
COMPENSATION
£52K
AGE
70

John Jeans

TITLE
Non-Executive Director
COMPENSATION
£53K
AGE
68
TENURE
6.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
23. Oct 18 Buy William Lee Individual 23. Oct 18 23. Oct 18 800 £37.27 £29,816
22. Oct 18 Buy Carol Chesney Individual 19. Oct 18 19. Oct 18 500 £37.81 £18,905
X
Management checks
We assess Renishaw's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Renishaw has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What Renishaw plc's (LON:RSW) P/E Is Telling Us

See our latest analysis for Renishaw How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Renishaw: P/E of 22.32 = £39.34 ÷ £1.76 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … LSE:RSW Price Estimation Relative to Market, June 6th 2019 Its P/E ratio suggests that Renishaw shareholders think that in the future it will perform about the same as other companies in its industry classification.

Simply Wall St -

Should You Be Concerned With Renishaw plc's (LON:RSW) -6.7% Earnings Drop?

See our latest analysis for Renishaw Commentary On RSW's Past Performance RSW's trailing twelve-month earnings (from 31 December 2018) of UK£128m has declined by -6.7% compared to the previous year. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.7%, indicating the rate at which RSW is growing has slowed down. … I recommend you continue to research Renishaw to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for RSW’s future growth?

Simply Wall St -

Calculating The Fair Value Of Renishaw plc (LON:RSW)

Today we will run through one way of estimating the intrinsic value of Renishaw plc (LON:RSW). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should Renishaw plc (LON:RSW) Be Part Of Your Dividend Portfolio?

Could Renishaw plc (LON:RSW) be an attractive dividend share to own for the long haul? Investors are often drawn to a company for its dividend.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Why Renishaw plc’s (LON:RSW) Return On Capital Employed Is Impressive

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Renishaw plc (LON:RSW) Delivered A Better ROE Than Its Industry

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every £1 worth of shareholders' equity, it generated £0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Consider Renishaw plc (LON:RSW)?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Should We Worry About Renishaw plc's (LON:RSW) P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 4.1%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Has Renishaw plc (LON:RSW) Got Enough Cash?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Renishaw plc (LON:RSW), with a market cap of UK£3.2b, often get neglected by retail investors. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … Check out our latest analysis for Renishaw

Simply Wall St -

Renishaw plc (LON:RSW) Investors Are Paying Above The Intrinsic Value

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

Renishaw plc, a metrology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. The company offers metrology products, including additive manufacturing systems, co-ordinate measuring machine products, machine tool probe systems, styli for probe systems, performance testing products, gauging systems, fixtures, and position encoders. It also provides healthcare products, such as craniomaxillofacial custom-made implants, neurosurgical robots, dental scanners, neurosurgical implants, neurosurgical accessories, Raman microscopes, and hybrid Raman systems; and dental structures manufacturing services, as well as dental computer-aided design software and neurosurgical planning software. In addition, the company offers RA800, a benchtop platform, which provides chemical imaging and analysis system for companies; and RA802, a benchtop Raman imaging system for the pharmaceutical industry. Further, it provides travel agency services. The company serves the aerospace, automotive, construction, consumer products, power generation, agriculture, healthcare, and resource exploration markets. Renishaw plc was founded in 1973 and is headquartered in Wotton-under-Edge, the United Kingdom.

Details
Name: Renishaw plc
RSW
Exchange: LSE
Founded: 1973
£2,738,304,987
72,788,543
Website: http://www.renishaw.com
Address: Renishaw plc
New Mills,
Wotton-under-Edge,
Gloucestershire, GL12 8JR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RSW Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RNSH.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB REW Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE RSWL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK RNSH.Y UNSPONSORD ADR Pink Sheets LLC US USD 23. Aug 2013
Number of employees
Current staff
Staff numbers
4,941
Renishaw employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 20:34
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.