# Renew Holdings plc (RNWH.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 913p, market value 723 millionp.

## Valuation
- **P/E (trailing): 15.7×** (5-yr avg 1569.7×, 3-yr avg 1528.5×). Renew Holdings plc trades at 15.7× trailing earnings, well below its own five-year average of 1569.7×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 12.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.70**. A PEG of 0.70 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.9×**. The shares trade at 2.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.4×**. Enterprise value is 4.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.9%** (5-yr avg 0.1%). Free cash flow equals 12.9% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.3%**. The inverse of the P/E: 6.3% of the price is earned each year.

## Profitability
- **Gross margin: 14.3%**. Renew Holdings plc keeps 14.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.6%**. 5.6% of revenue is left after running the business.
- **Net margin: 4.5%**. 4.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.2%**. 20.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 34.6%**. Return on all capital, debt included, is 34.6%: comfortably above what that capital costs.
- **Return on assets: 16.5%**. Each dollar of assets produces 16.5% of profit.

## Growth
- **Revenue growth (1 yr): 7.1%** (3-yr 9.8%/yr, 5-yr 11.7%/yr). Revenue grew 7.1% over the last year, against 11.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 17.0%** (3-yr 8.9%/yr, 5-yr 18.1%/yr). Earnings per share rose 17.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 0.5%/yr**. Free cash flow has compounded at 0.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.12**. Debt is 0.12 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 16.5×**. Operating profit covers interest 16.5× over, a safe margin.
- **Current ratio: 0.88** (quick 0.83). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.49**. A Z-score of 4.49 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.16%** (0p per share, trailing). Renew Holdings plc yields 2.16%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 31%** (33% of free cash flow). 31% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 20.3%/yr** (1-yr 5.5%). The dividend has compounded at 20.3% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (5 analysts). 5 analysts cover Renew Holdings plc; the consensus is strong_buy, with an average price target of 1298p (+42% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 15.5%** (YTD 5.4%, 3-mo 8.3%). The shares are up 15.5% over twelve months including dividends.
- **From 52-week high: -7.7%** (18.3% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.86** (volatility 23%). Beta of 0.86 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RNWH.L · Page: https://foliofundamentals.com/stocks/rnwh.l

Not investment advice.