RENAULT SA (RNO.PA) Stock Fundamental Analysis
EPA:RNO - Euronext Paris - Matif - FR0000131906 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RNO. RNO was compared to 33 industry peers in the Automobiles industry. There are concerns on the financial health of RNO while its profitability can be described as average. RNO scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year RNO was profitable.
In the past year RNO had a positive cash flow from operations.
In multiple years RNO reported negative net income over the last 5 years.
Each year in the past 5 years RNO had a positive operating cash flow.
1.2 Ratios
RNO has a Return On Assets of 0.58%. This is in the lower half of the industry: RNO underperforms 69.70% of its industry peers.
RNO has a worse Return On Equity (2.48%) than 69.70% of its industry peers.
RNO has a Return On Invested Capital of 2.89%. This is in the lower half of the industry: RNO underperforms 66.67% of its industry peers.
RNO had an Average Return On Invested Capital over the past 3 years of 2.59%. This is below the industry average of 6.11%.
The last Return On Invested Capital (2.89%) for RNO is above the 3 year average (2.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 2.48% | ||
| ROIC | 2.89% |
ROA(3y)0.7%
ROA(5y)-0.81%
ROE(3y)2.9%
ROE(5y)-4.08%
ROIC(3y)2.59%
ROIC(5y)N/A
1.3 Margins
RNO has a Profit Margin of 1.34%. This is in the lower half of the industry: RNO underperforms 69.70% of its industry peers.
RNO's Profit Margin has declined in the last couple of years.
RNO has a better Operating Margin (7.58%) than 63.64% of its industry peers.
In the last couple of years the Operating Margin of RNO has grown nicely.
RNO has a Gross Margin of 20.86%. This is in the better half of the industry: RNO outperforms 63.64% of its industry peers.
RNO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 1.34% | ||
| GM | 20.86% |
OM growth 3Y39.51%
OM growth 5Y9.6%
PM growth 3Y-14.39%
PM growth 5YN/A
GM growth 3Y3.06%
GM growth 5Y1.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RNO is still creating some value.
The number of shares outstanding for RNO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RNO has less shares outstanding
RNO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that RNO is in the distress zone and has some risk of bankruptcy.
RNO's Altman-Z score of 0.96 is on the low side compared to the rest of the industry. RNO is outperformed by 72.73% of its industry peers.
The Debt to FCF ratio of RNO is 16.89, which is on the high side as it means it would take RNO, 16.89 years of fcf income to pay off all of its debts.
RNO's Debt to FCF ratio of 16.89 is fine compared to the rest of the industry. RNO outperforms 60.61% of its industry peers.
A Debt/Equity ratio of 2.22 is on the high side and indicates that RNO has dependencies on debt financing.
RNO's Debt to Equity ratio of 2.22 is on the low side compared to the rest of the industry. RNO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 16.89 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.14
WACC2.53%
2.3 Liquidity
RNO has a Current Ratio of 1.05. This is a normal value and indicates that RNO is financially healthy and should not expect problems in meeting its short term obligations.
RNO's Current ratio of 1.05 is on the low side compared to the rest of the industry. RNO is outperformed by 78.79% of its industry peers.
A Quick Ratio of 0.98 indicates that RNO may have some problems paying its short term obligations.
RNO has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
RNO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.67%.
Measured over the past years, RNO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.23% on average per year.
Looking at the last year, RNO shows a small growth in Revenue. The Revenue has grown by 7.36% in the last year.
The Revenue has been growing slightly by 0.25% on average over the past years.
EPS 1Y (TTM)-34.67%
EPS 3Y17.23%
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y10.52%
Revenue growth 5Y0.25%
Sales Q2Q%14.68%
3.2 Future
RNO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.52% yearly.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y105.61%
EPS Next 2Y50.1%
EPS Next 3Y33.18%
EPS Next 5Y24.52%
Revenue Next Year5.47%
Revenue Next 2Y4.12%
Revenue Next 3Y3.47%
Revenue Next 5Y2.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.89, the valuation of RNO can be described as very cheap.
60.61% of the companies in the same industry are more expensive than RNO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RNO is valued rather cheaply.
A Price/Forward Earnings ratio of 3.84 indicates a rather cheap valuation of RNO.
78.79% of the companies in the same industry are more expensive than RNO, based on the Price/Forward Earnings ratio.
RNO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 3.84 |
4.2 Price Multiples
96.97% of the companies in the same industry are more expensive than RNO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.9 | ||
| EV/EBITDA | -0.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RNO's earnings are expected to grow with 33.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y50.1%
EPS Next 3Y33.18%
5. Dividend
5.1 Amount
RNO has a Yearly Dividend Yield of 5.40%, which is a nice return.
RNO's Dividend Yield is comparable with the industry average which is at 5.28.
RNO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
5.2 History
The dividend of RNO decreases each year by -12.21%.
Dividend Growth(5Y)-12.21%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
71.28% of the earnings are spent on dividend by RNO. This is not a sustainable payout ratio.
DP71.28%
EPS Next 2Y50.1%
EPS Next 3Y33.18%
EPA:RNO (7/11/2025, 7:00:00 PM)
41.2
-0.66 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners27.28%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap12.18B
Analysts75.65
Price Target56.95 (38.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Yearly Dividend1.85
Dividend Growth(5Y)-12.21%
DP71.28%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 3.84 | ||
| P/S | 0.22 | ||
| P/FCF | 2.9 | ||
| P/OCF | 1.7 | ||
| P/B | 0.4 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | -0.06 |
EPS(TTM)5.22
EY12.67%
EPS(NY)10.73
Fwd EY26.05%
FCF(TTM)14.2
FCFY34.46%
OCF(TTM)24.22
OCFY58.78%
SpS190.15
BVpS102.49
TBVpS85.03
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 2.48% | ||
| ROCE | 9.96% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 3.98% | ||
| OM | 7.58% | ||
| PM (TTM) | 1.34% | ||
| GM | 20.86% | ||
| FCFM | 7.47% |
ROA(3y)0.7%
ROA(5y)-0.81%
ROE(3y)2.9%
ROE(5y)-4.08%
ROIC(3y)2.59%
ROIC(5y)N/A
ROICexc(3y)3.35%
ROICexc(5y)N/A
ROICexgc(3y)3.58%
ROICexgc(5y)N/A
ROCE(3y)8.35%
ROCE(5y)N/A
ROICexcg growth 3Y45.15%
ROICexcg growth 5Y9.75%
ROICexc growth 3Y46.65%
ROICexc growth 5Y10.24%
OM growth 3Y39.51%
OM growth 5Y9.6%
PM growth 3Y-14.39%
PM growth 5YN/A
GM growth 3Y3.06%
GM growth 5Y1.28%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 16.89 | ||
| Debt/EBITDA | 9.04 | ||
| Cap/Depr | 93.06% | ||
| Cap/Sales | 5.27% | ||
| Interest Coverage | 13.28 | ||
| Cash Conversion | 96.17% | ||
| Profit Quality | 558.38% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.96 |
F-Score6
WACC2.53%
ROIC/WACC1.14
Cap/Depr(3y)88.39%
Cap/Depr(5y)82.56%
Cap/Sales(3y)5.63%
Cap/Sales(5y)6.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.67%
EPS 3Y17.23%
EPS 5YN/A
EPS Q2Q%37.5%
EPS Next Y105.61%
EPS Next 2Y50.1%
EPS Next 3Y33.18%
EPS Next 5Y24.52%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y10.52%
Revenue growth 5Y0.25%
Sales Q2Q%14.68%
Revenue Next Year5.47%
Revenue Next 2Y4.12%
Revenue Next 3Y3.47%
Revenue Next 5Y2.63%
EBIT growth 1Y3.55%
EBIT growth 3Y54.19%
EBIT growth 5Y9.88%
EBIT Next Year142.89%
EBIT Next 3Y36.74%
EBIT Next 5Y21.94%
FCF growth 1Y221.27%
FCF growth 3YN/A
FCF growth 5Y54.43%
OCF growth 1Y63.83%
OCF growth 3Y54.76%
OCF growth 5Y5.04%