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RNW

ReNew Energy Global NasdaqGS:RNW Stock Report

Last Price

US$6.73

Market Cap

US$2.7b

7D

-1.0%

1Y

-31.9%

Updated

21 May, 2022

Data

Company Financials +
RNW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RNW Stock Overview

ReNew Energy Global plc generates power through non-conventional and renewable energy sources in India.

Rewards

Trading at 83% below our estimate of its fair value

Earnings are forecast to grow 111.26% per year

Risk Analysis

No risks detected for RNW from our risk checks.

ReNew Energy Global Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ReNew Energy Global
Historical stock prices
Current Share PriceUS$6.73
52 Week HighUS$12.30
52 Week LowUS$5.06
Beta0
1 Month Change-10.39%
3 Month Change-12.14%
1 Year Change-31.88%
3 Year Changen/a
5 Year Changen/a
Change since IPOn/a

Recent News & Updates

Mar 17

ReNew: Value-Growth Mix But Not A Buy Yet

The Indian renewables market as a huge long-term tailwind for the company and industry as a whole. ReNew has a market-leading position with a strategic end-to-end integration plan to boost the top line and cut supply risks. However, high financing cost continues to hinder its profitability prospect. There is a lack of catalysts to be a good ‘buy’ for now despite relative valuation showing positive signs.

Mar 16
ReNew Energy Global's (NASDAQ:RNW) Returns On Capital Are Heading Higher

ReNew Energy Global's (NASDAQ:RNW) Returns On Capital Are Heading Higher

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

RNWUS Renewable EnergyUS Market
7D-1.0%4.5%-2.7%
1Y-31.9%-4.7%-12.9%

Return vs Industry: RNW underperformed the US Renewable Energy industry which returned -4.7% over the past year.

Return vs Market: RNW underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is RNW's price volatile compared to industry and market?
RNW volatility
RNW Average Weekly Movement8.3%
Renewable Energy Industry Average Movement9.2%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: RNW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RNW's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20111,219Sumant Sinhahttps://www.renewpower.in

ReNew Energy Global plc generates power through non-conventional and renewable energy sources in India. It operates through Wind Power and Solar Power segments. It develops, builds, owns, and operates utility scale wind and solar energy, as well as distributed solar energy projects that generate energy for commercial and industrial customers.

ReNew Energy Global Fundamentals Summary

How do ReNew Energy Global's earnings and revenue compare to its market cap?
RNW fundamental statistics
Market Cap₹209.89b
Earnings (TTM)-₹16.30b
Revenue (TTM)₹55.30b

3.8x

P/S Ratio

-12.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNW income statement (TTM)
Revenue₹55.30b
Cost of Revenue₹417.00m
Gross Profit₹54.89b
Other Expenses₹71.18b
Earnings-₹16.30b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-40.66
Gross Margin99.25%
Net Profit Margin-29.47%
Debt/Equity Ratio336.1%

How did RNW perform over the long term?

See historical performance and comparison

Valuation

Is ReNew Energy Global undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RNW ($6.73) is trading below our estimate of fair value ($39.59)

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


Price To Earnings Ratio

PE vs Industry: RNW is unprofitable, so we can't compare its PE Ratio to the US Renewable Energy industry average.

PE vs Market: RNW 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 RNW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNW is good value based on its PB Ratio (1.7x) compared to the US Renewable Energy industry average (2.4x).


Future Growth

How is ReNew Energy Global forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


111.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: RNW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RNW's is expected to become profitable in the next 3 years.

Revenue vs Market: RNW's revenue (19.7% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: RNW's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNW's Return on Equity is forecast to be low in 3 years time (8.1%).


Past Performance

How has ReNew Energy Global performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-75.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RNW is currently unprofitable.

Growing Profit Margin: RNW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNW is unprofitable, and losses have increased over the past 5 years at a rate of 75.1% per year.

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

Earnings vs Industry: RNW is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-12.6%).


Return on Equity

High ROE: RNW has a negative Return on Equity (-12.92%), as it is currently unprofitable.


Financial Health

How is ReNew Energy Global's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: RNW's short term assets (₹130.8B) exceed its short term liabilities (₹108.3B).

Long Term Liabilities: RNW's short term assets (₹130.8B) do not cover its long term liabilities (₹379.2B).


Debt to Equity History and Analysis

Debt Level: RNW's net debt to equity ratio (289.6%) is considered high.

Reducing Debt: RNW's debt to equity ratio has increased from 203.3% to 336.1% 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: RNW has sufficient cash runway for more than a year based on its current free cash flow.

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


Dividend

What is ReNew Energy Global current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RNW has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure


CEO

Sumant Sinha (55 yo)

11.33yrs

Tenure

₹191,000,000

Compensation

Mr. Sumant Sinha serves as Chief Executive Officer at ReNew Energy Global plc since August 2021. He had been Managing Director of ReNew Energy Global plc (formerly ReNew Power Ltd) since 2018 until August...


Leadership Team

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


Board Members

Experienced Board: RNW's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

ReNew Energy Global plc's employee growth, exchange listings and data sources


Key Information

  • Name: ReNew Energy Global plc
  • Ticker: RNW
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Implied Market Cap: US$2.697b
  • Shares outstanding: 400.80m
  • Website: https://www.renewpower.in

Number of Employees


Location

  • ReNew Energy Global plc
  • Commercial Block-1
  • Golf Course Road
  • Gurugram
  • Haryana
  • 122009
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/03/31


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.