LSE:RSW

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

-4.2%

LSE:RSW

-0.4%

GB Electronic

0.05%

GB Market


1 Year Return

-23.4%

LSE:RSW

1.8%

GB Electronic

-0.7%

GB Market

RSW underperformed the Electronic industry which returned 1.2% over the past year.

RSW underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.3% over the past year.


Share holder returns

RSWIndustryMarket
7 Day-4.2%-0.4%0.05%
30 Day5.5%4.7%3.5%
90 Day-3.8%-2.0%-0.1%
1 Year-22.4%-23.4%3.5%1.8%4.1%-0.7%
3 Year45.1%41.1%61.2%54.1%21.2%6.7%
5 Year149.5%132.5%119.4%101.0%31.5%3.8%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Renishaw's share price is below the future cash flow value, and at a moderate discount (> 20%).

Renishaw's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

Renishaw is poor value based on expected growth next year.


Price Based on Value of Assets

Renishaw is overvalued based on assets compared to the GB Electronic industry average.


Next Steps

Future Growth

How is Renishaw expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Renishaw's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Renishaw's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

Renishaw's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Renishaw's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Renishaw's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Renishaw is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Renishaw performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Renishaw's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

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.


Return on Equity

Renishaw has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Renishaw used its assets more efficiently than the GB Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Renishaw's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Renishaw's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Renishaw's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Renishaw's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (1024%, greater than 20% of total debt).

Renishaw earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 39.3x debt.


Next Steps

Dividend

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

1.82%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Renishaw before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Renishaw's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.03%).

Renishaw's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Will Lee 0

1.6yrs

Tenure

UK£653,000

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

Will's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Will's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

67.5yo

Average Age

The average tenure for the Renishaw management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

69.5yo

Average Age

The tenure for the Renishaw board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£29,81623 Oct 18
William Lee
EntityIndividual
Role
Chief Executive Officer
Chief Executive
Shares800
Max PriceUK£37.27
BuyUK£18,90522 Oct 18
Carol Chesney
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500
Max PriceUK£37.81

Ownership Breakdown


Management Team

  • David Deer (81yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£458.00k
  • David McMurtry (79yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£703.00k
  • Allen C. Roberts (70yo)

    Group Finance Director

    • Tenure: 38.9yrs
    • Compensation: UK£491.00k
  • Dave Wallace (48yo)

    GM of CMM Products Dvision

    • Tenure: 11.7yrs
  • Leo Somerville (61yo)

    Member of Executive Board

    • Tenure: 15.7yrs
  • Jean-Marc Meffre (65yo)

    Member of Executive Board

    • Tenure: 0yrs
  • Mark Moloney

    Member of the Executive Board

    • Tenure: 1.6yrs
  • Will Lee

    Chief Executive

    • Tenure: 1.6yrs
    • Compensation: UK£653.00k
  • Mark Noble

    General Counsel & Company Secretary

    • Tenure: 1.7yrs
  • Gareth Hankins

    Director of Group Manufacturing Services Division & Member of the Executive Board

    • Tenure: 1.6yrs

Board Members

  • David Deer (81yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£458.00k
  • Carol Chesney (56yo)

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£55.00k
  • David McMurtry (79yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: UK£703.00k
  • Allen C. Roberts (70yo)

    Group Finance Director

    • Tenure: 38.9yrs
    • Compensation: UK£491.00k
  • John Jeans (69yo)

    Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£56.00k
  • Catherine Glickman (61yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • David Grant (71yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£55.00k
  • Sean Hymas (53yo)

    President & Representative Director of Renishaw KK

    • Tenure: 0yrs
  • Will Lee

    Chief Executive

    • Tenure: 1.6yrs
    • Compensation: UK£653.00k

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£2.766b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSWLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
REWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RNSH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RSWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
RNSH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2013

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 20:33
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.