ReNew Energy Global plc
ReNew Energy Global plc Fundamental Analysis
ReNew Energy Global plc (RNWWW) shows moderate financial fundamentals with a PE ratio of 14.96, profit margin of 9.23%, and ROE of 10.05%. The company generates $129.3B in annual revenue with strong year-over-year growth of 19.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -19.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RNWWW's fundamental strength across five key dimensions:
Efficiency Score
WeakRNWWW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRNWWW trades at attractive valuation levels.
Growth Score
ModerateRNWWW shows steady but slowing expansion.
Financial Health Score
WeakRNWWW carries high financial risk with limited liquidity.
Profitability Score
WeakRNWWW struggles to sustain strong margins.
Key Financial Metrics
Is RNWWW Expensive or Cheap?
P/E Ratio
RNWWW trades at 14.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RNWWW's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values ReNew Energy Global plc at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.57 times EBITDA. This is generally considered low.
How Well Does RNWWW Make Money?
Net Profit Margin
For every $100 in sales, ReNew Energy Global plc keeps $9.23 as profit after all expenses.
Operating Margin
Core operations generate 48.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.05 in profit for every $100 of shareholder equity.
ROA
ReNew Energy Global plc generates $1.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ReNew Energy Global plc generates strong operating cash flow of $70.26B, reflecting robust business health.
Free Cash Flow
ReNew Energy Global plc generates weak or negative free cash flow of $-14.14B, restricting financial flexibility.
FCF Per Share
Each share generates $-38.92 in free cash annually.
FCF Yield
RNWWW converts -7.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How RNWWW Stacks Against Its Sector Peers
| Metric | RNWWW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.96 | 19.14 | Better (Cheaper) |
| ROE | 10.05% | 1002.00% | Weak |
| Net Margin | 9.23% | 9090.00% | Weak |
| Debt/Equity | 6.29 | 1.75 | Weak (High Leverage) |
| Current Ratio | 0.57 | 1.28 | Weak Liquidity |
| ROA | 1.16% | -252.00% (disorted) | Weak |
RNWWW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ReNew Energy Global plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
121.53%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
249.28%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
112.77%
Industry Style: Defensive, Dividend, Income
High Growth