RENEW ENERGY GLOBAL PLC-A (RNW) Stock Fundamental Analysis
USA - NASDAQ:RNW - GB00BNQMPN80 - Common Stock
7.67 USD
-0.03 (-0.39%)
7.67 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RNW. RNW was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of RNW while its profitability can be described as average. RNW is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
RNW had negative earnings in the past year.
RNW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RNW reported negative net income in multiple years.
Each year in the past 5 years RNW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RNW (0.89%) is better than 65.00% of its industry peers.
RNW has a Return On Equity of 7.24%. This is in the better half of the industry: RNW outperforms 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.15%, RNW belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
RNW had an Average Return On Invested Capital over the past 3 years of 5.05%. This is in line with the industry average of 4.08%.
The 3 year average ROIC (5.05%) for RNW is below the current ROIC(6.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 7.24% | ||
| ROIC | 6.15% |
ROA(3y)0.05%
ROA(5y)-0.79%
ROE(3y)0.7%
ROE(5y)-4.81%
ROIC(3y)5.05%
ROIC(5y)5.24%
1.3 Margins
RNW has a Profit Margin of 7.55%. This is comparable to the rest of the industry: RNW outperforms 60.00% of its industry peers.
RNW has a Operating Margin of 54.28%. This is amongst the best in the industry. RNW outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of RNW has declined.
RNW has a Gross Margin of 83.72%. This is amongst the best in the industry. RNW outperforms 100.00% of its industry peers.
RNW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.28% | ||
| PM (TTM) | 7.55% | ||
| GM | 83.72% |
OM growth 3Y-6.03%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.56%
GM growth 5Y-2.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNW is destroying value.
The number of shares outstanding for RNW remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RNW has less shares outstanding
RNW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that RNW is in the distress zone and has some risk of bankruptcy.
RNW has a Altman-Z score (0.38) which is comparable to the rest of the industry.
RNW has a debt to FCF ratio of 102.61. This is a negative value and a sign of low solvency as RNW would need 102.61 years to pay back of all of its debts.
The Debt to FCF ratio of RNW (102.61) is better than 65.00% of its industry peers.
A Debt/Equity ratio of 5.16 is on the high side and indicates that RNW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.16, RNW is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.16 | ||
| Debt/FCF | 102.61 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.93
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.77 indicates that RNW may have some problems paying its short term obligations.
With a Current ratio value of 0.77, RNW perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
RNW has a Quick Ratio of 0.77. This is a bad value and indicates that RNW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, RNW perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
RNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 778.79%, which is quite impressive.
The Revenue has grown by 36.64% in the past year. This is a very strong growth!
RNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.93% yearly.
EPS 1Y (TTM)778.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5233.33%
Revenue 1Y (TTM)36.64%
Revenue growth 3Y17.82%
Revenue growth 5Y14.93%
Sales Q2Q%52.17%
3.2 Future
The Earnings Per Share is expected to grow by 646.91% on average over the next years. This is a very strong growth
RNW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 456.68% yearly.
EPS Next Y64.05%
EPS Next 2Y54.96%
EPS Next 3Y646.91%
EPS Next 5YN/A
Revenue Next Year33.69%
Revenue Next 2Y24.84%
Revenue Next 3Y456.68%
Revenue Next 5YN/A
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
With a Price/Forward Earnings ratio of 2111.65, RNW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RNW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RNW to the average of the S&P500 Index (22.94), we can say RNW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2111.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RNW is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.59 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RNW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RNW's earnings are expected to grow with 646.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.96%
EPS Next 3Y646.91%
5. Dividend
5.1 Amount
RNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.67
-0.03 (-0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.2%
Inst Owner Change-0.13%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap2.78B
Analysts80
Price Target8.65 (12.78%)
Short Float %0.88%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.05%
Min EPS beat(2)5.61%
Max EPS beat(2)134.49%
EPS beat(4)3
Avg EPS beat(4)6.76%
Min EPS beat(4)-128.76%
Max EPS beat(4)134.49%
EPS beat(8)6
Avg EPS beat(8)91.19%
EPS beat(12)8
Avg EPS beat(12)56.18%
EPS beat(16)8
Avg EPS beat(16)-142.76%
Revenue beat(2)2
Avg Revenue beat(2)22.24%
Min Revenue beat(2)22.09%
Max Revenue beat(2)22.38%
Revenue beat(4)3
Avg Revenue beat(4)10.12%
Min Revenue beat(4)-4.48%
Max Revenue beat(4)22.38%
Revenue beat(8)6
Avg Revenue beat(8)8.54%
Revenue beat(12)9
Avg Revenue beat(12)1125.97%
Revenue beat(16)13
Avg Revenue beat(16)2941.64%
PT rev (1m)0%
PT rev (3m)1.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.82%
EPS NY rev (1m)-11.99%
EPS NY rev (3m)-19.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2111.65 | ||
| P/S | 2.16 | ||
| P/FCF | 34.59 | ||
| P/OCF | 3.52 | ||
| P/B | 2.07 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)0
EYN/A
EPS(NY)0
Fwd EY0.05%
FCF(TTM)0.22
FCFY2.89%
OCF(TTM)2.18
OCFY28.42%
SpS3.55
BVpS3.7
TBVpS2.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 7.24% | ||
| ROCE | 7.78% | ||
| ROIC | 6.15% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 7.22% | ||
| OM | 54.28% | ||
| PM (TTM) | 7.55% | ||
| GM | 83.72% | ||
| FCFM | 6.24% |
ROA(3y)0.05%
ROA(5y)-0.79%
ROE(3y)0.7%
ROE(5y)-4.81%
ROIC(3y)5.05%
ROIC(5y)5.24%
ROICexc(3y)5.63%
ROICexc(5y)5.9%
ROICexgc(3y)5.97%
ROICexgc(5y)6.35%
ROCE(3y)6.91%
ROCE(5y)7.01%
ROICexcg growth 3Y-6.64%
ROICexcg growth 5Y-4.43%
ROICexc growth 3Y-5.44%
ROICexc growth 5Y-3.52%
OM growth 3Y-6.03%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.56%
GM growth 5Y-2.04%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.16 | ||
| Debt/FCF | 102.61 | ||
| Debt/EBITDA | 7.31 | ||
| Cap/Depr | 285.53% | ||
| Cap/Sales | 55.15% | ||
| Interest Coverage | 0.92 | ||
| Cash Conversion | 83.42% | ||
| Profit Quality | 82.7% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.38 |
F-Score7
WACC6.63%
ROIC/WACC0.93
Cap/Depr(3y)623.73%
Cap/Depr(5y)545.48%
Cap/Sales(3y)132.03%
Cap/Sales(5y)119.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)778.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5233.33%
EPS Next Y64.05%
EPS Next 2Y54.96%
EPS Next 3Y646.91%
EPS Next 5YN/A
Revenue 1Y (TTM)36.64%
Revenue growth 3Y17.82%
Revenue growth 5Y14.93%
Sales Q2Q%52.17%
Revenue Next Year33.69%
Revenue Next 2Y24.84%
Revenue Next 3Y456.68%
Revenue Next 5YN/A
EBIT growth 1Y24.04%
EBIT growth 3Y10.71%
EBIT growth 5Y10.07%
EBIT Next Year66.38%
EBIT Next 3Y489.23%
EBIT Next 5YN/A
FCF growth 1Y127.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.73%
OCF growth 3Y16.81%
OCF growth 5Y14%