AMEX:RCG

Stock Analysis Report

Executive Summary

RENN Fund, Inc. is a closed ended equity mutual fund launched by RENN Capital Group, Inc.

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RCG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.9%

RCG

-1.2%

US Capital Markets

-1.1%

US Market


1 Year Return

-34.2%

RCG

-16.0%

US Capital Markets

-13.6%

US Market

Return vs Industry: RCG underperformed the US Capital Markets industry which returned -16% over the past year.

Return vs Market: RCG underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

RCGIndustryMarket
7 Day-9.9%-1.2%-1.1%
30 Day-40.8%-20.4%-17.8%
90 Day-38.9%-25.8%-22.5%
1 Year-34.2%-34.2%-14.3%-16.0%-11.9%-13.6%
3 Year-21.9%-21.9%5.3%-0.9%12.1%4.9%
5 Year-21.9%-21.9%29.2%17.0%30.5%16.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is RENN Fund 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: RCG ($1) is trading below our estimate of fair value ($4.89)

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


Price To Earnings Ratio

PE vs Industry: RCG is good value based on its PE Ratio (2.6x) compared to the Capital Markets industry average (33x).

PE vs Market: RCG is good value based on its PE Ratio (2.6x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCG is good value based on its PB Ratio (0.5x) compared to the US Capital Markets industry average (7.8x).

Future Growth

How is RENN Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as RENN Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has RENN Fund performed over the past 5 years?

58.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCG has a high level of non-cash earnings.

Growing Profit Margin: RCG's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: RCG has become profitable over the past 5 years, growing earnings by 58.5% per year.

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

Earnings vs Industry: RCG had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Capital Markets industry average (9.7%).


Return on Equity

High ROE: RCG's Return on Equity (13.7%) is considered low.

Financial Health

How is RENN Fund's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RCG has a low level of unsold assets or inventory.

Debt Coverage by Assets: RCG's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RCG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: RCG is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: RCG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RCG has a sufficient allowance for bad loans.

Low Risk Liabilities: RCG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RCG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RCG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RCG has an appropriate level of bad loans.

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RCG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RCG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RCG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RCG's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Management

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

22.3yrs

Average board tenure


CEO

George Cleveland (80yo)

26.25s

Tenure

Mr. George Russell Cleveland, C.F.A., serves as the President and Chief Operating Officer of Renaissance Capital Partners Ltd. He serves as a Manager of Renaissance U.S. Growth and Income Trust PLC and U.S ...


Board Members

NamePositionTenureCompensationOwnership
George Cleveland
Chairman26.25yrsno data6.04% $359.6k
J. McCormick
Director14.08yrsno datano data
Ernest Hill
Independent Director26.25yrsno datano data
Charles Pierce
Independent Director18.25yrsno datano data

22.3yrs

Average Tenure

79.5yo

Average Age

Experienced Board: RCG's board of directors are seasoned and experienced ( 22.3 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

RENN Fund, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RENN Fund, Inc.
  • Ticker: RCG
  • Exchange: AMEX
  • Founded: 1994
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$5.952m
  • Shares outstanding: 5.95m
  • Website: https://www.rencapital.com

Location

  • RENN Fund, Inc.
  • Third Floor
  • 470 Park Avenue, South
  • New York
  • New York
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCGAMEX (NYSE MKT LLC)YesCommon StockUSUSDApr 1996

Biography

RENN Fund, Inc. is a closed ended equity mutual fund launched by RENN Capital Group, Inc. The fund is co-managed by Horizon Kinetics Asset Management LLC. It invests in the public equity markets of the United States. The fund seeks to invest in stocks of companies operating across diversified sectors. It seeks to invest in stocks of small-cap and mid-cap companies. The fund employs a fundamental analysis with a bottom-up stock picking approach to create its portfolio. It was formerly known as RENN Global Entrepreneurs Fund, Inc. RENN Fund, Inc. was formed on January 20, 1994 and is domiciled in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:09
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.