Renault (RNO) AI Stock Analysis

• Market Cap: €9.95B
• Dividend Yield: 6.4%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 8.44%
• EPS Growth: -937.75%
• Country: FR
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -40.90
• Shares Outstanding: 295,722,260
• 10 Day Avg. Volume: 1,001,853
• 30 Day Avg. Volume: 1,051,508
• PEG Ratio: -0.26
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 3.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €42.11
• Price Target Upside: 22.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: €36.00 ▲(4.74% Upside)

Renault's overall stock score is primarily driven by its strong cash flow performance and stable balance sheet, despite challenges in profitability and valuation. The technical analysis suggests a neutral market sentiment, with no strong momentum. The attractive dividend yield partially offsets the negative P/E ratio, but profitability improvements are needed for a higher score.

Positive Factors

Cash Flow Management

Strong cash flow management indicates Renault's ability to generate cash efficiently, supporting operational needs and strategic investments, enhancing long-term financial stability.

Revenue Growth

Consistent revenue growth showcases Renault's ability to expand its market presence and product adoption, crucial for sustaining competitive advantage and future profitability.

Electric Vehicle Focus

By focusing on electric vehicles, Renault aligns with industry trends towards sustainability, potentially capturing market share and benefiting from regulatory incentives.

Negative Factors

Profitability Challenges

Low profitability margins suggest Renault may struggle to convert revenue into profit, potentially limiting reinvestment capacity and shareholder returns.

Return on Equity

A low ROE indicates inefficiencies in using shareholder equity to generate profits, which can impact investor confidence and long-term growth potential.

Debt Levels

While leverage is moderate, maintaining this balance is crucial to avoid financial strain, especially if profitability does not improve, impacting financial flexibility.

Renault Business Overview & Revenue Model

Company Description

Renault (RNO) is a French multinational automobile manufacturer established in 1899, known for its diverse range of vehicles, including cars, trucks, and electric vehicles. The company operates primarily in the automotive sector and is part of the Renault-Nissan-Mitsubishi Alliance, which enhances its global reach and collaboration in technology development. Renault's core products include passenger cars, commercial vehicles, and a growing lineup of electric vehicles, catering to various markets around the world.

How the Company Makes Money

Renault generates revenue primarily through the sale of vehicles, which includes both passenger cars and commercial vehicles. Key revenue streams include sales of new vehicles, financing services, and after-sales services such as maintenance and spare parts. The company also benefits from strategic partnerships within the Renault-Nissan-Mitsubishi Alliance, which allows for shared technology development and cost reduction through economies of scale. Additionally, Renault has been increasing its focus on electric vehicles, leveraging government incentives and growing consumer demand for sustainable transportation solutions, which contributes positively to its earnings.

Renault Financial Statement Overview

Summary

Renault exhibits solid revenue growth and robust cash flow management, as evidenced by a 7.37% increase in revenue and a 194.11% growth in free cash flow. However, the net profit margin of 1.34% and ROE of 2.48% indicate moderate profitability and efficiency challenges, suggesting the need for improvement in generating shareholder value.

Income Statement

Renault's income statement reflects a positive trajectory in revenue growth, with a 7.37% increase from 2023 to 2024. The gross profit margin is healthy at 20.78%, although the net profit margin is relatively low at 1.34%, indicating moderate profitability challenges. The EBIT margin of 4.58% and EBITDA margin of 10.54% suggest adequate operational efficiency, though improvements could enhance overall profitability.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 23.43%. The debt-to-equity ratio is 0.32, indicating reasonable leverage. However, the return on equity (ROE) is low at 2.48%, highlighting challenges in generating returns for shareholders. The company's financial stability is supported by a substantial cash balance.

Cash Flow

Renault demonstrates robust cash flow management, with a significant free cash flow growth rate of 194.11% from 2023 to 2024. The operating cash flow to net income ratio is strong at 9.52, indicating efficient cash generation relative to net income. Free cash flow to net income ratio is notably high at 5.47, reflecting excellent free cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.91B	56.23B	52.38B	46.39B	41.66B	43.47B
Gross Profit	11.09B	11.69B	10.90B	8.27B	6.87B	6.01B
EBITDA	5.67B	5.93B	6.39B	7.59B	4.80B	3.65B
Net Income	-11.73B	752.00M	2.20B	-338.00M	888.00M	-8.01B
Balance Sheet
Total Assets	116.94B	129.37B	121.91B	118.32B	113.74B	115.74B
Cash, Cash Equivalents and Short-Term Investments	19.68B	23.07B	20.20B	22.36B	22.82B	22.12B
Total Debt	8.18B	9.57B	65.08B	64.34B	61.96B	64.89B
Total Liabilities	96.29B	98.26B	91.28B	88.78B	85.85B	90.40B
Stockholders Equity	19.88B	30.31B	29.75B	28.80B	27.32B	24.77B
Cash Flow
Free Cash Flow	1.12B	4.11B	1.40B	929.00M	-277.00M	1.54B
Operating Cash Flow	3.99B	7.16B	4.46B	3.61B	2.41B	5.75B
Investing Cash Flow	-1.82B	-2.04B	-2.23B	-3.24B	-1.62B	-4.23B
Financing Cash Flow	-4.36B	-3.23B	-3.08B	-532.00M	-629.00M	5.59B

Renault Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RNO, the sentiment is Negative. The current price of 34.37 is below the 20-day moving average (MA) of 34.82, above the 50-day MA of 34.29, and below the 200-day MA of 40.82, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RNO.

Renault Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEUG	75 Outperform	€1.89B	47.48	0.83%	4.27%	-48.21%	-64.53%
FR	67 Neutral	€2.95B	23.67	3.67%	3.46%	-4.16%	-48.55%
RNO	63 Neutral	€9.95B	-0.80	-46.54%	6.40%	8.44%	-937.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ML	61 Neutral	$19.70B	12.64	8.49%	4.94%	-3.62%	-17.91%
FRVIA	55 Neutral	€2.18B	-4.75	-11.30%	4.52%	-0.90%	-324.34%
MLHK	54 Neutral	€1.67B	64.47	―	0.13%	8.84%	78.33%