# Renishaw plc (RSW.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Electronic Equipment, Instruments & Components. Price 5152p, market value 3.7 billionp.

## Valuation
- **P/E (trailing): 50.5×** (5-yr avg 2616.2×, 3-yr avg 2568.1×). Renishaw plc trades at 50.5× trailing earnings, well below its own five-year average of 2616.2×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 25.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.6×**. Each dollar of revenue is priced at 2.6×.
- **Price / book: 4.1×**. The shares trade at 4.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.2×**. Enterprise value is 13.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.5%** (5-yr avg 0.0%). Free cash flow equals 4.5% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 2.0%**. The inverse of the P/E: 2.0% of the price is earned each year.

## Profitability
- **Gross margin: 53.1%**. Renishaw plc keeps 53.1% of revenue after the direct cost of what it sells.
- **Operating margin: 14.3%**. 14.3% of revenue is left after running the business.
- **Net margin: 11.7%**. 11.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.0%**. 9.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 24.1%**. Return on all capital, debt included, is 24.1%: comfortably above what that capital costs.
- **Return on assets: 15.1%**. Each dollar of assets produces 15.1% of profit.

## Growth
- **Revenue growth (1 yr): 3.1%** (3-yr 1.9%/yr, 5-yr 7.0%/yr). Revenue grew 3.1% over the last year, against 7.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -13.5%** (3-yr -11.3%/yr, 5-yr 210.3%/yr). Earnings per share fell 13.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.2%/yr**. Free cash flow has compounded at 7.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Renishaw plc holds more cash than debt.
- **Interest coverage: 27.9×**. Operating profit covers interest 27.9× over, a safe margin.
- **Current ratio: 4.57** (quick 3.41). Current assets cover the next year's liabilities 4.57 times.
- **Altman Z-score: 13.26**. A Z-score of 13.26 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.51%** (1p per share, trailing). Renishaw plc yields 1.51%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 66%** (67% of free cash flow). 66% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 1.5%**. Dividends plus net buybacks return 1.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Renishaw plc; the consensus is buy, with an average price target of 5385p (+5% 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): 61.5%** (YTD 49.3%, 3-mo 1.2%). The shares are up 61.5% over twelve months including dividends.
- **From 52-week high: -6.2%** (65.7% above the low). Trading 6% 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): 58**. An RSI of 58 is neutral.
- **Beta (1 yr): 1.01** (volatility 33%). Beta of 1.01 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.