RENEW ENERGY GLOBAL PLC-A (RNW) Stock Fundamental Analysis
USA - NASDAQ:RNW - GB00BNQMPN80 - Common Stock
7.69 USD
-0.03 (-0.39%)
7.69 USD
0 (0%)
RNW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valued quite expensively, but it does show have an excellent growth rating.
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.
In multiple years RNW reported negative net income over the last 5 years.
Each year in the past 5 years RNW had a positive operating cash flow.
1.2 Ratios
RNW has a better Return On Assets (0.89%) than 65.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.24%, RNW is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RNW's Return On Invested Capital of 6.15% is amongst the best of the industry. RNW outperforms 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RNW is in line with the industry average of 4.21%.
The last Return On Invested Capital (6.15%) for RNW is above the 3 year average (5.05%), which is a sign of increasing profitability.
| 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
The Profit Margin of RNW (7.55%) is comparable to the rest of the industry.
RNW's Operating Margin of 54.28% is amongst the best of the industry. RNW outperforms 100.00% of its industry peers.
RNW's Operating Margin has declined in the last couple of years.
RNW's Gross Margin of 83.72% is amongst the best of the industry. RNW outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of RNW has declined.
| 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.
RNW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RNW has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 0.38, RNW is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of RNW is 102.61, which is on the high side as it means it would take RNW, 102.61 years of fcf income to pay off all of its debts.
RNW has a Debt to FCF ratio of 102.61. This is in the better half of the industry: RNW outperforms 65.00% of its industry peers.
RNW has a Debt/Equity ratio of 5.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RNW (5.16) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.16 | ||
| Debt/FCF | 102.61 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.93
WACC6.63%
2.3 Liquidity
RNW has a Current 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.
The Current ratio of RNW (0.77) is comparable to the rest of the industry.
A Quick Ratio of 0.73 indicates that RNW may have some problems paying its short term obligations.
RNW has a Quick ratio (0.73) which is in line with its industry peers.
| 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.
RNW shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.64%.
Measured over the past years, RNW shows a quite strong growth in Revenue. The Revenue has been growing by 14.93% on average per year.
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
Based on estimates for the next years, RNW will show a very strong growth in Earnings Per Share. The EPS will grow by 645.19% on average per year.
The Revenue is expected to grow by 24.62% on average over the next years. This is a very strong growth
EPS Next Y86.4%
EPS Next 2Y69.53%
EPS Next 3Y645.19%
EPS Next 5YN/A
Revenue Next Year33.69%
Revenue Next 2Y24.84%
Revenue Next 3Y24.62%
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Forward Earnings ratio of 1773.26 indicates a quite expensive valuation of RNW.
The rest of the industry has a similar Price/Forward Earnings ratio as RNW.
RNW is valuated expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1773.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RNW indicates a somewhat cheap valuation: RNW is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RNW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.77 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RNW may justify a higher PE ratio.
A more expensive valuation may be justified as RNW's earnings are expected to grow with 645.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y69.53%
EPS Next 3Y645.19%
5. Dividend
5.1 Amount
RNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.69
-0.03 (-0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change-1.02%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap2.79B
Analysts80
Price Target8.65 (12.48%)
Short Float %0.93%
Short Ratio2.24
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)1.15%
EPS NQ rev (1m)-34.82%
EPS NQ rev (3m)-17.39%
EPS NY rev (1m)-8.68%
EPS NY rev (3m)-13.38%
Revenue NQ rev (1m)-5.89%
Revenue NQ rev (3m)-11.03%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1773.26 | ||
| P/S | 2.17 | ||
| P/FCF | 34.77 | ||
| P/OCF | 3.54 | ||
| P/B | 2.08 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)0
EYN/A
EPS(NY)0
Fwd EY0.06%
FCF(TTM)0.22
FCFY2.88%
OCF(TTM)2.17
OCFY28.27%
SpS3.54
BVpS3.69
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 Y86.4%
EPS Next 2Y69.53%
EPS Next 3Y645.19%
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 3Y24.62%
Revenue Next 5YN/A
EBIT growth 1Y24.04%
EBIT growth 3Y10.71%
EBIT growth 5Y10.07%
EBIT Next Year67.97%
EBIT Next 3Y487.87%
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%