NYSE:RENN

Stock Analysis Report

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Executive Summary

Renren Inc. sells used automobiles and related products in the People’s Republic of China. More Details

Risk Analysis

Volatile share price over the past 3 months



Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RENN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 21% a week.

Volatility Over Time: RENN's weekly volatility has decreased from 28% to 21% over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-22.8%

RENN

-4.1%

US Specialty Retail

-3.4%

US Market


1 Year Return

420.5%

RENN

50.0%

US Specialty Retail

29.4%

US Market

Return vs Industry: RENN exceeded the US Specialty Retail industry which returned 50% over the past year.

Return vs Market: RENN exceeded the US Market which returned 29.4% over the past year.


Shareholder returns

RENNIndustryMarket
7 Day-22.8%-4.1%-3.4%
30 Day-10.2%2.5%0.6%
90 Day18.0%14.2%6.3%
1 Year420.5%420.5%51.0%50.0%32.2%29.4%
3 Year167.6%-75.1%95.0%87.0%51.3%41.7%
5 Year48.9%-86.1%91.3%76.1%119.6%95.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RENN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RENN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RENN is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: RENN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RENN is good value based on its PB Ratio (1.6x) compared to the US Specialty Retail industry average (3x).


Next Steps

Future Growth

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

33.7%

Forecasted Retail 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 Renren 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.


Next Steps

Past Performance

How has Renren performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RENN is currently unprofitable.

Growing Profit Margin: RENN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RENN is unprofitable, but has reduced losses over the past 5 years at a rate of 15.7% per year.

Accelerating Growth: Unable to compare RENN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RENN is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (22.7%).


Return on Equity

High ROE: RENN has a negative Return on Equity (-158.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is Renren's financial position?


Financial Position Analysis

Short Term Liabilities: RENN's short term assets ($57.5M) do not cover its short term liabilities ($89.1M).

Long Term Liabilities: RENN's short term assets ($57.5M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: RENN's debt to equity ratio (22.9%) is considered satisfactory.

Reducing Debt: RENN's debt to equity ratio has increased from 0.03% to 22.9% over the past 5 years.


Balance Sheet


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: Insufficient data to determine if RENN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RENN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Joe Chen (50 yo)

no data

Tenure

Mr. Joseph Chen, also known as Joe, serves as Chairman of the Board at Kaixin Auto Holdings. Mr. Chen is the Founder of Renren Inc. and has been its Chairman and Chief Executive Officer since its inception...


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Chen
Founderno datano data25.91%
$ 42.0m
Jian Liu
COO, Interim VP of Games & Executive Director13.17yrsno data2.95%
$ 4.8m
Mingjun Lin
Chief Executive Officer0.25yrno datano data
Yi Yang
Acting Chief Financial Officer0.75yrno datano data
Rui Yi
Vice President of Human Resources4.42yrsno datano data

2.6yrs

Average Tenure

48.5yo

Average Age

Experienced Management: RENN's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Chen
Founderno datano data25.91%
$ 42.0m
Jian Liu
COO, Interim VP of Games & Executive Director13.17yrsno data2.95%
$ 4.8m
Chuan-Fu Wang
Independent Director8.83yrsno datano data
Hui Huang
Independent Director6.17yrsno datano data
Lin Cong
Independent Director0.67yrno datano data

7.5yrs

Average Tenure

47yo

Average Age

Experienced Board: RENN's board of directors are considered experienced (7.5 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

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


Key Information

  • Name: Renren Inc.
  • Ticker: RENN
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$161.994m
  • Shares outstanding: 23.58m
  • Website: https://www.renren-inc.com

Number of Employees


Location

  • Renren Inc.
  • 18 Jiuxianqiao Middle Road
  • 5th Floor
  • Beijing
  • 100016
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RENNNYSE (New York Stock Exchange)YesSPON ADR A NEWUSUSDMay 2011
R2RSDB (Deutsche Boerse AG)YesSPON ADR A NEWDEEURMay 2011

Biography

Renren Inc. sells used automobiles and related products in the People’s Republic of China. The company also arranges financing options for customers through its financial services partners; provides credit...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 23:35
End of Day Share Price2021/03/03 00:00
Earnings2020/06/30
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.