Renewi Plc (RWI.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:RWI - GB00BNR4T868 - Common Stock
10.302 EUR
0 (-0.04%)
We assign a fundamental rating of 3 out of 10 to RWI. RWI was compared to 43 industry peers in the Commercial Services & Supplies industry. RWI may be in some trouble as it scores bad on both profitability and health. RWI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- RWI had negative earnings in the past year.
- In the past year RWI had a positive cash flow from operations.
- In multiple years RWI reported negative net income over the last 5 years.
- In the past 5 years RWI always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of -3.03%, RWI is doing worse than 67.44% of the companies in the same industry.
- With a Return On Equity value of -19.56%, RWI is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 5.39%, RWI is in line with its industry, outperforming 53.49% of the companies in the same industry.
- RWI had an Average Return On Invested Capital over the past 3 years of 6.71%. This is in line with the industry average of 8.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.03% | ||
| ROE | -19.56% | ||
| ROIC | 5.39% |
ROA(3y)1.72%
ROA(5y)0.36%
ROE(3y)9.94%
ROE(5y)-0.21%
ROIC(3y)6.71%
ROIC(5y)5.73%
1.3 Margins
- RWI has a better Operating Margin (6.02%) than 62.79% of its industry peers.
- RWI's Operating Margin has improved in the last couple of years.
- The Gross Margin of RWI (20.46%) is worse than 74.42% of its industry peers.
- RWI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | N/A | ||
| GM | 20.46% |
OM growth 3Y13.16%
OM growth 5Y5.4%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.93%
GM growth 5Y2.8%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RWI is still creating some value.
- Compared to 1 year ago, RWI has more shares outstanding
- RWI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RWI has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.92, we must say that RWI is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.92, RWI is doing worse than 62.79% of the companies in the same industry.
- The Debt to FCF ratio of RWI is 6.21, which is on the high side as it means it would take RWI, 6.21 years of fcf income to pay off all of its debts.
- RWI has a better Debt to FCF ratio (6.21) than 60.47% of its industry peers.
- RWI has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.72, RWI is doing worse than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.21 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.81
WACC6.67%
2.3 Liquidity
- A Current Ratio of 0.47 indicates that RWI may have some problems paying its short term obligations.
- With a Current ratio value of 0.47, RWI is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
- A Quick Ratio of 0.43 indicates that RWI may have some problems paying its short term obligations.
- The Quick ratio of RWI (0.43) is worse than 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- RWI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -234.55%.
- Looking at the last year, RWI shows a small growth in Revenue. The Revenue has grown by 1.90% in the last year.
- The Revenue has been decreasing by -1.05% on average over the past years.
EPS 1Y (TTM)-234.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.19%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y-0.09%
Revenue growth 5Y-1.05%
Sales Q2Q%3.58%
3.2 Future
- Based on estimates for the next years, RWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.43% on average per year.
- RWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.42% yearly.
EPS Next Y8.44%
EPS Next 2Y19.74%
EPS Next 3Y22.01%
EPS Next 5Y19.43%
Revenue Next Year-5.27%
Revenue Next 2Y0.03%
Revenue Next 3Y1.98%
Revenue Next 5Y2.42%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for RWI. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 11.86, which indicates a very decent valuation of RWI.
- RWI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RWI is cheaper than 62.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, RWI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RWI is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RWI indicates a somewhat cheap valuation: RWI is cheaper than 69.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
- RWI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- RWI's earnings are expected to grow with 22.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.74%
EPS Next 3Y22.01%
5. Dividend
5.1 Amount
- RWI has a yearly dividend return of 0.58%, which is pretty low.
- RWI's Dividend Yield is comparable with the industry average which is at 2.54.
- Compared to an average S&P500 Dividend Yield of 1.82, RWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y19.74%
EPS Next 3Y22.01%
Renewi Plc / RWI.AS FAQ
What is the fundamental rating for RWI stock?
ChartMill assigns a fundamental rating of 3 / 10 to RWI.AS.
What is the valuation status for RWI stock?
ChartMill assigns a valuation rating of 4 / 10 to Renewi Plc (RWI.AS). This can be considered as Fairly Valued.
Can you provide the profitability details for Renewi Plc?
Renewi Plc (RWI.AS) has a profitability rating of 3 / 10.
What is the earnings growth outlook for Renewi Plc?
The Earnings per Share (EPS) of Renewi Plc (RWI.AS) is expected to grow by 8.44% in the next year.