Renishaw plc
Renishaw plc Fundamental Analysis
Renishaw plc (RNSHF) shows weak financial fundamentals with a PE ratio of 43.26, profit margin of 10.06%, and ROE of 8.06%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 3.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RNSHF's fundamental strength across five key dimensions:
Efficiency Score
WeakRNSHF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRNSHF shows balanced valuation metrics.
Growth Score
WeakRNSHF faces weak or negative growth trends.
Financial Health Score
ExcellentRNSHF maintains a strong and stable balance sheet.
Profitability Score
WeakRNSHF struggles to sustain strong margins.
Key Financial Metrics
Is RNSHF Expensive or Cheap?
P/E Ratio
RNSHF trades at 43.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RNSHF's PEG of -4.80 indicates potential undervaluation.
Price to Book
The market values Renishaw plc at 3.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.59 times EBITDA. This signals the market has high growth expectations.
How Well Does RNSHF Make Money?
Net Profit Margin
For every $100 in sales, Renishaw plc keeps $10.06 as profit after all expenses.
Operating Margin
Core operations generate 12.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.06 in profit for every $100 of shareholder equity.
ROA
Renishaw plc generates $6.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Renishaw plc produces operating cash flow of $108.08M, showing steady but balanced cash generation.
Free Cash Flow
Renishaw plc produces free cash flow of $67.87M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
RNSHF converts 2.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RNSHF Stacks Against Its Sector Peers
| Metric | RNSHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.26 | 35.62 | Worse (Expensive) |
| ROE | 8.06% | 1161.00% | Weak |
| Net Margin | 10.06% | -126170.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 4.57 | 5.83 | Strong Liquidity |
| ROA | 6.66% | -308589.00% (disorted) | Weak |
RNSHF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Renishaw plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.04%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
28999.91%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
40.33%
Industry Style: Growth, Innovation, High Beta
High Growth