OTCPK:RNSH.F

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 Analysis

Excellent balance sheet average 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

Stable Share Price: RNSH.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

RNSH.F

-0.1%

US Electronic

0.06%

US Market


1 Year Return

n/a

RNSH.F

8.5%

US Electronic

19.3%

US Market

Return vs Industry: Insufficient data to determine how RNSH.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how RNSH.F performed against the US Market.


Shareholder returns

RNSH.FIndustryMarket
7 Day-1.4%-0.1%0.06%
30 Day11.0%-3.8%1.7%
90 Dayn/a3.0%9.0%
1 Yearn/a9.6%8.5%21.8%19.3%
3 Year36.8%36.8%37.4%33.7%49.5%39.9%
5 Yearn/a70.5%62.2%73.1%54.1%

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

No news available

Valuation

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

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNSH.F ($52.65) is trading below our estimate of fair value ($88.55)

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


Price To Earnings Ratio

PE vs Industry: RNSH.F is poor value based on its PE Ratio (60.3x) compared to the Electronic industry average (19.7x).

PE vs Market: RNSH.F is poor value based on its PE Ratio (60.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: RNSH.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: RNSH.F is overvalued based on its PB Ratio (4.9x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNSH.F's forecast earnings growth (42.4% per year) is above the savings rate (1.7%).

Earnings vs Market: RNSH.F's earnings (42.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RNSH.F's revenue (7.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RNSH.F's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNSH.F's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Renishaw performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNSH.F has high quality earnings.

Growing Profit Margin: RNSH.F's current net profit margins (8.9%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: RNSH.F's earnings have declined by -0.5% per year over the past 5 years.

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

Earnings vs Industry: RNSH.F had negative earnings growth (-62.9%) over the past year, making it difficult to compare to the Electronic industry average (14.6%).


Return on Equity

High ROE: RNSH.F's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Renishaw's financial position?


Financial Position Analysis

Short Term Liabilities: RNSH.F's short term assets (£344.3M) exceed its short term liabilities (£68.2M).

Long Term Liabilities: RNSH.F's short term assets (£344.3M) exceed its long term liabilities (£77.9M).


Debt to Equity History and Analysis

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

Reducing Debt: Insufficient data to determine if RNSH.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RNSH.F's debt is well covered by operating cash flow (857.5%).

Interest Coverage: RNSH.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RNSH.F has a high level of physical assets or inventory.

Debt Coverage by Assets: RNSH.F's debt is covered by short term assets (assets are 32.2x debt).


Next Steps

Dividend

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

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNSH.F's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RNSH.F's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: RNSH.F's dividends per share have been stable in the past 10 years.

Growing Dividend: RNSH.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.7%), RNSH.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RNSH.F's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Will Lee 0

2yrs

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

Compensation vs Market: Will's total compensation ($USD840.74K) is below average for companies of similar size in the US market ($USD4.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David McMurtry
Co-Founder0yrsUK£703.00k36.24% £1.3b
William Lee
Chief Executive2yrsUK£653.00k0.0039% £142.3k
David Deer
Co-Founder & Non-Executive Deputy Chairman0yrsUK£458.00k16.81% £621.5m
Allen C. Roberts
Group Finance Director39.3yrsUK£491.00k0.0071% £262.5k
Dave Wallace
GM of CMM Products Dvision12.1yrsno datano data
Leo Somerville
Member of Executive Board16.1yrsno datano data
Jean-Marc Meffre
Member of Executive Board0yrsno datano data
Mark Moloney
Member of the Executive Board2yrsno datano data
Gareth Hankins
Director of Group Manufacturing Services Division & Member of the Executive Board2yrsno datano data
Jacqueline Conway
General Counsel & Company Secretary0.3yrsno datano data

2.0yrs

Average Tenure

67.5yo

Average Age

Experienced Management: RNSH.F's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David McMurtry
Co-Founder0yrsUK£703.00k36.24% £1.3b
William Lee
Chief Executive2yrsUK£653.00k0.0039% £142.3k
David Deer
Co-Founder & Non-Executive Deputy Chairman0yrsUK£458.00k16.81% £621.5m
Allen C. Roberts
Group Finance Director39.3yrsUK£491.00k0.0071% £262.5k
Sean Hymas
President & Representative Director of Renishaw KK0yrsno datano data
Carol Chesney
Non-Executive Director7.3yrsUK£55.00k0.0014% £50.7k
John Jeans
Non-Executive Director6.8yrsUK£56.00k0.00060% £22.2k
Catherine Glickman
Non-Executive Director1.5yrsno data0.0019% £68.8k
David Grant
Senior Independent Director0yrsUK£55.00kno data

6.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: RNSH.F's board of directors are considered experienced (6.8 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

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


Key Information

  • Name: Renishaw plc
  • Ticker: RNSH.F
  • Exchange: OTCPK
  • Founded: 1973
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: UK£2.872b
  • Listing Market Cap: UK£3.697b
  • 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, 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, dental scanners, dental computer-aided design software, neurosurgical robots, neurosurgical planning software, neurosurgical implants, neurosurgical accessories, Raman microscopes, and hybrid Raman systems, as well as dental structures manufacturing, and biological and pharmaceutical services. In addition, the company offers travel agency services. It serves the aerospace, automotive, construction, consumer products, power generation, agriculture, healthcare, resource exploration, electronics, heavy, precision manufacturing, and medical industries, as well as scientific, research, and analysis industries. The company was founded in 1973 and is headquartered in Wotton-under-Edge, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:40
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.