Renew Holdings Plc (RNWH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kier Group Plc

Morgan Sindall Group plc

Keller Group Plc

Balfour Beatty Plc

Andrews Sykes Group Plc

Renew Holdings Plc

Costain Group Plc

Capital Ltd.

Smart Metering Systems Plc

Petrofac Ltd.

Severfield Plc

Why is Renew Holdings Plc ?

Strong Long Term Fundamental Strength with a 11.74% CAGR growth in Net Sales

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 37.78
The company has been able to generate a Return on Capital Employed (avg) of 29.92% signifying high profitability per unit of total capital (equity and debt)

Negative results in Sep 25

INTEREST(HY) At GBP 1.81 MM has Grown at 50.04%
ROCE(HY) Lowest at 19.85%
INVENTORY TURNOVER RATIO(HY) Lowest at 88.96 times

With ROE of 19.17%, it has a fair valuation with a 2.99 Price to Book Value

Over the past year, while the stock has generated a return of 22.80%, its profits have fallen by -0.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Renew Holdings Plc should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Renew Holdings Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Renew Holdings Plc

-100.0%

-0.82

25.24%

FTSE 100

13.98%

1.02

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.74%

EBIT Growth (5y)

11.76%

EBIT to Interest (avg)

37.78

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

4.82

Tax Ratio

23.50%

Dividend Payout Ratio

38.31%

Pledged Shares

Institutional Holding

ROCE (avg)

29.92%

ROE (avg)

25.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.99

EV to EBIT

12.19

EV to EBITDA

8.57

EV to Capital Employed

2.96

EV to Sales

0.67

PEG Ratio

Dividend Yield

219.46%

ROCE (Latest)

24.29%

ROE (Latest)

19.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 63.09%

RAW MATERIAL COST(Y)

Fallen by 0.86% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.58 times

OPERATING PROFIT(Q)

Highest at GBP 46.75 MM

-11What is not working for the Company

INTEREST(HY)

At GBP 1.81 MM has Grown at 50.04%

ROCE(HY)

Lowest at 19.85%

INVENTORY TURNOVER RATIO(HY)

Lowest at 88.96 times

CASH AND EQV(HY)

Lowest at GBP 6.22 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 26.58 MM

NET PROFIT(Q)

Lowest at GBP 19.76 MM

EPS(Q)

Lowest at GBP 0.21

Here's what is working for Renew Holdings Plc

Operating Profit

Highest at GBP 46.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Debtors Turnover Ratio

Highest at 5.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 63.09%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 13.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Renew Holdings Plc

Interest

At GBP 1.81 MM has Grown at 50.04%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Inventory Turnover Ratio

Lowest at 88.96 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

Lowest at GBP 26.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 19.76 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 6.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents