RENAULT SA (RNO.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:RNO • FR0000131906
31.88 EUR
+0.11 (+0.35%)
Last: Jan 30, 2026, 07:00 PM
RNO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Automobiles industry. While RNO is still in line with the averages on profitability rating, there are concerns on its financial health. RNO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RNO has reported negative net income.
- In the past year RNO had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: RNO reported negative net income in multiple years.
- In the past 5 years RNO always reported a positive cash flow from operatings.
1.2 Ratios
- RNO has a worse Return On Assets (-10.03%) than 81.25% of its industry peers.
- RNO has a Return On Equity of -58.98%. This is in the lower half of the industry: RNO underperforms 78.13% of its industry peers.
- RNO's Return On Invested Capital of 2.86% is in line compared to the rest of the industry. RNO outperforms 46.88% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RNO is below the industry average of 5.93%.
- The last Return On Invested Capital (2.86%) for RNO is above the 3 year average (2.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.03% | ||
| ROE | -58.98% | ||
| ROIC | 2.86% |
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's Profit Margin has declined in the last couple of years.
- RNO's Operating Margin of 6.57% is fine compared to the rest of the industry. RNO outperforms 62.50% of its industry peers.
- In the last couple of years the Operating Margin of RNO has grown nicely.
- RNO's Gross Margin of 19.58% is fine compared to the rest of the industry. RNO outperforms 68.75% of its industry peers.
- RNO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.57% | ||
| PM (TTM) | N/A | ||
| GM | 19.58% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RNO is creating some value.
- Compared to 1 year ago, RNO has about the same amount of shares outstanding.
- RNO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RNO is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.87, we must say that RNO is in the distress zone and has some risk of bankruptcy.
- RNO's Altman-Z score of 0.87 is on the low side compared to the rest of the industry. RNO is outperformed by 68.75% of its industry peers.
- The Debt to FCF ratio of RNO is 53.76, which is on the high side as it means it would take RNO, 53.76 years of fcf income to pay off all of its debts.
- RNO's Debt to FCF ratio of 53.76 is in line compared to the rest of the industry. RNO outperforms 53.13% of its industry peers.
- RNO has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
- RNO has a Debt to Equity ratio of 3.33. This is amonst the worse of the industry: RNO underperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 53.76 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.34
WACC2.13%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RNO should not have too much problems paying its short term obligations.
- RNO has a worse Current ratio (1.03) than 75.00% of its industry peers.
- A Quick Ratio of 0.95 indicates that RNO may have some problems paying its short term obligations.
- RNO has a Quick ratio (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- RNO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -895.86%.
- 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.
- The Revenue has grown by 8.44% in the past year. This is quite good.
- RNO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.25% yearly.
EPS 1Y (TTM)-895.86%
EPS 3Y17.23%
EPS 5YN/A
EPS Q2Q%-975.8%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y10.52%
Revenue growth 5Y0.25%
Sales Q2Q%2.53%
3.2 Future
- RNO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.91% yearly.
- The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y-798.88%
EPS Next 2Y20.79%
EPS Next 3Y13.59%
EPS Next 5Y10.91%
Revenue Next Year6.03%
Revenue Next 2Y4.05%
Revenue Next 3Y3.49%
Revenue Next 5Y3.49%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- RNO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 4.19, the valuation of RNO can be described as very cheap.
- Based on the Price/Forward Earnings ratio, RNO is valued cheaper than 93.75% of the companies in the same industry.
- RNO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RNO indicates a somewhat cheap valuation: RNO is cheaper than 78.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| EV/EBITDA | -0.16 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as RNO's earnings are expected to grow with 13.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.79%
EPS Next 3Y13.59%
5. Dividend
5.1 Amount
- RNO has a Yearly Dividend Yield of 6.92%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.73, RNO pays a better dividend. On top of this RNO pays more dividend than 84.38% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, RNO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
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
- The earnings of RNO are negative and hence is the payout ratio. RNO will probably not be able to sustain this dividend level.
DP-5.42%
EPS Next 2Y20.79%
EPS Next 3Y13.59%
RENAULT SA / RNO.PA FAQ
Can you provide the ChartMill fundamental rating for RENAULT SA?
ChartMill assigns a fundamental rating of 4 / 10 to RNO.PA.
What is the valuation status for RNO stock?
ChartMill assigns a valuation rating of 4 / 10 to RENAULT SA (RNO.PA). This can be considered as Fairly Valued.
What is the profitability of RNO stock?
RENAULT SA (RNO.PA) has a profitability rating of 4 / 10.
Can you provide the financial health for RNO stock?
The financial health rating of RENAULT SA (RNO.PA) is 2 / 10.
What is the expected EPS growth for RENAULT SA (RNO.PA) stock?
The Earnings per Share (EPS) of RENAULT SA (RNO.PA) is expected to decline by -798.88% in the next year.