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RENEW ENERGY GLOBAL PLC-A (RNW) Stock Fundamental Analysis

NASDAQ:RNW - Nasdaq - GB00BNQMPN80 - Common Stock

6.74  -0.03 (-0.44%)

Fundamental Rating

4

Taking everything into account, RNW scores 4 out of 10 in our fundamental rating. RNW was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. RNW has a medium profitability rating, but doesn't score so well on its financial health evaluation. RNW is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

RNW had negative earnings in the past year.
In the past year RNW had a positive cash flow from operations.
RNW had negative earnings in 4 of the past 5 years.
Each year in the past 5 years RNW had a positive operating cash flow.
RNW Yearly Net Income VS EBIT VS OCF VS FCFRNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 50B -50B

1.2 Ratios

RNW's Return On Assets of 0.21% is in line compared to the rest of the industry. RNW outperforms 45.00% of its industry peers.
With a Return On Equity value of 1.76%, RNW perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
RNW has a Return On Invested Capital of 5.36%. This is amongst the best in the industry. RNW outperforms 85.00% of its industry peers.
RNW had an Average Return On Invested Capital over the past 3 years of 5.25%. This is in line with the industry average of 4.30%.
The last Return On Invested Capital (5.36%) for RNW is above the 3 year average (5.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.21%
ROE 1.76%
ROIC 5.36%
ROA(3y)-0.92%
ROA(5y)-0.98%
ROE(3y)-4.95%
ROE(5y)-6.21%
ROIC(3y)5.25%
ROIC(5y)5.42%
RNW Yearly ROA, ROE, ROICRNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

RNW has a Profit Margin (2.37%) which is in line with its industry peers.
RNW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 61.82%, RNW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RNW has declined.
Looking at the Gross Margin, with a value of 96.70%, RNW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RNW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 61.82%
PM (TTM) 2.37%
GM 96.7%
OM growth 3Y-2.29%
OM growth 5Y-3.69%
PM growth 3YN/A
PM growth 5Y-7.35%
GM growth 3Y-1.31%
GM growth 5Y-0.93%
RNW Yearly Profit, Operating, Gross MarginsRNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RNW is destroying value.
RNW has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, RNW has a worse debt to assets ratio.
RNW Yearly Shares OutstandingRNW Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 100M 200M 300M 400M
RNW Yearly Total Debt VS Total AssetsRNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 200B 400B 600B 800B

2.2 Solvency

Based on the Altman-Z score of 0.28, we must say that RNW is in the distress zone and has some risk of bankruptcy.
RNW has a Altman-Z score of 0.28. This is comparable to the rest of the industry: RNW outperforms 45.00% of its industry peers.
RNW has a Debt/Equity ratio of 5.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RNW (5.27) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.27
Debt/FCF N/A
Altman-Z 0.28
ROIC/WACC0.72
WACC7.47%
RNW Yearly LT Debt VS Equity VS FCFRNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200B 400B

2.3 Liquidity

RNW has a Current Ratio of 0.65. 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 Current ratio value of 0.65, RNW is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
RNW has a Quick Ratio of 0.65. This is a bad value and indicates that RNW is not financially healthy enough and could expect problems in meeting its short term obligations.
RNW's Quick ratio of 0.64 is on the low side compared to the rest of the industry. RNW is outperformed by 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.64
RNW Yearly Current Assets VS Current LiabilitesRNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 50B 100B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.00% over the past year.
RNW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.89% yearly.
Looking at the last year, RNW shows a decrease in Revenue. The Revenue has decreased by -0.04% in the last year.
Measured over the past years, RNW shows a quite strong growth in Revenue. The Revenue has been growing by 13.52% on average per year.
EPS 1Y (TTM)26%
EPS 3YN/A
EPS 5Y8.89%
EPS Q2Q%27.27%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y19.06%
Revenue growth 5Y13.52%
Sales Q2Q%2.24%

3.2 Future

RNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 343.31% yearly.
Based on estimates for the next years, RNW will show a very strong growth in Revenue. The Revenue will grow by 269.30% on average per year.
EPS Next Y-39.8%
EPS Next 2Y63.88%
EPS Next 3Y56.78%
EPS Next 5Y343.31%
Revenue Next Year10.91%
Revenue Next 2Y20.09%
Revenue Next 3Y21.62%
Revenue Next 5Y269.3%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RNW Yearly Revenue VS EstimatesRNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50B 100B 150B
RNW Yearly EPS VS EstimatesRNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 10 20 30 40

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2

4. Valuation

4.1 Price/Earnings Ratio

RNW is valuated quite expensively with a Price/Forward Earnings ratio of 1811.05.
RNW's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. RNW is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 1811.05
RNW Price Earnings VS Forward Price EarningsRNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RNW is valued a bit cheaper than 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.06
RNW Per share dataRNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 -2 3

4.3 Compensation for Growth

RNW's earnings are expected to grow with 56.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.88%
EPS Next 3Y56.78%

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0

5. Dividend

5.1 Amount

RNW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RENEW ENERGY GLOBAL PLC-A

NASDAQ:RNW (1/22/2025, 1:05:03 PM)

6.74

-0.03 (-0.44%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-19 2024-11-19/amc
Earnings (Next)02-18 2025-02-18/amc
Inst Owners82.3%
Inst Owner Change-0.03%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap2.51B
Analysts80
Price Target8.73 (29.53%)
Short Float %2.06%
Short Ratio3.77
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-23.43%
Min EPS beat(2)-62.54%
Max EPS beat(2)15.69%
EPS beat(4)3
Avg EPS beat(4)32.22%
Min EPS beat(4)-62.54%
Max EPS beat(4)141.57%
EPS beat(8)6
Avg EPS beat(8)99.78%
EPS beat(12)6
Avg EPS beat(12)-79.11%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-8.5%
Max Revenue beat(4)8.47%
Revenue beat(8)5
Avg Revenue beat(8)834.12%
Revenue beat(12)9
Avg Revenue beat(12)2894.85%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.84%
PT rev (3m)-1.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.23%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 1811.05
P/S 2.6
P/FCF N/A
P/OCF 3.27
P/B 1.94
P/tB 2.89
EV/EBITDA 12.06
EPS(TTM)0
EYN/A
EPS(NY)0
Fwd EY0.06%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)2.06
OCFY30.59%
SpS2.59
BVpS3.48
TBVpS2.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.21%
ROE 1.76%
ROCE 6.78%
ROIC 5.36%
ROICexc 5.93%
ROICexgc 6.27%
OM 61.82%
PM (TTM) 2.37%
GM 96.7%
FCFM N/A
ROA(3y)-0.92%
ROA(5y)-0.98%
ROE(3y)-4.95%
ROE(5y)-6.21%
ROIC(3y)5.25%
ROIC(5y)5.42%
ROICexc(3y)5.97%
ROICexc(5y)6.12%
ROICexgc(3y)6.4%
ROICexgc(5y)6.64%
ROCE(3y)7%
ROCE(5y)7.16%
ROICexcg growth 3Y-5.4%
ROICexcg growth 5YN/A
ROICexc growth 3Y-4.09%
ROICexc growth 5YN/A
OM growth 3Y-2.29%
OM growth 5Y-3.69%
PM growth 3YN/A
PM growth 5Y-7.35%
GM growth 3Y-1.31%
GM growth 5Y-0.93%
F-Score5
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 5.27
Debt/FCF N/A
Debt/EBITDA 8.38
Cap/Depr 710.08%
Cap/Sales 161.44%
Interest Coverage 0.9
Cash Conversion 94.15%
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.64
Altman-Z 0.28
F-Score5
WACC7.47%
ROIC/WACC0.72
Cap/Depr(3y)690.24%
Cap/Depr(5y)524.78%
Cap/Sales(3y)150.32%
Cap/Sales(5y)116.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26%
EPS 3YN/A
EPS 5Y8.89%
EPS Q2Q%27.27%
EPS Next Y-39.8%
EPS Next 2Y63.88%
EPS Next 3Y56.78%
EPS Next 5Y343.31%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y19.06%
Revenue growth 5Y13.52%
Sales Q2Q%2.24%
Revenue Next Year10.91%
Revenue Next 2Y20.09%
Revenue Next 3Y21.62%
Revenue Next 5Y269.3%
EBIT growth 1Y14.69%
EBIT growth 3Y16.33%
EBIT growth 5Y9.33%
EBIT Next Year70.82%
EBIT Next 3Y32.94%
EBIT Next 5Y287.16%
FCF growth 1Y-177.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.88%
OCF growth 3Y29.04%
OCF growth 5Y18.1%