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Renishaw
(LSE:RSW)
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Rating:78Outperform
Price Target:
6,452.00 p
▲(27.51% Upside)
Action:Reiterated
Date:09/28/26
The score is driven primarily by high-quality financials (especially a very strong, low-debt balance sheet) and supportive technical momentum with the stock trading above key moving averages. Earnings-call commentary further supports the outlook with strong growth and margin expansion, while the main offsets are a relatively expensive valuation (high P/E with modest yield) and watch items around cash conversion consistency and operational execution (e.g., ERP challenges and cyclicality).
Positive Factors
Conservative balance sheet
Extremely low leverage and steadily rising equity give Renishaw substantial financial resilience. This supports continued investment in capacity, engineering, and innovation while reducing dependence on external financing through cyclical manufacturing conditions.
Negative Factors
Cyclical semiconductor exposure
Dependence on semiconductor capital spending creates a durable earnings risk because equipment demand can reverse after periods of elevated investment. A downturn could pressure revenue growth, factory utilization, and operating leverage even if long-term demand remains attractive.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and steadily rising equity give Renishaw substantial financial resilience. This supports continued investment in capacity, engineering, and innovation while reducing dependence on external financing through cyclical manufacturing conditions.
Read all positive factors
Renishaw (RSW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.17B
Dividend Yield1.36%
Average Volume (3M)141.37K
Price to Earnings (P/E)35.0
Beta (1Y)0.78
Revenue Growth14.41%
EPS Growth41.98%
CountryUK
Employees5,057
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.64
Shares Outstanding72,788,540
10 Day Avg. Volume144,155
30 Day Avg. Volume141,370
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)3.78
Price to Sales (P/S)4.57
P/FCF Ratio44.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,915.00Price Target Upside16.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.21
Revenue Forecast (FY)£922.56M
Renishaw Business Overview & Revenue Model
Company Description
Renishaw plc is a British engineering and scientific technology enterprise, established in 1973, that operates globally. The company specializes in the conception, production, distribution, and maintenance of advanced metrology and healthcare inno...
How the Company Makes Money
Renishaw makes money primarily by selling engineered hardware systems, consumables/accessories, and associated software and services across its measurement and manufacturing product lines. Key revenue streams include: (1) Industrial metrology prod...
Renishaw Earnings Call Summary
Earnings Call Date:Sep 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by 14% revenue growth, 36% adjusted operating-profit growth, significant margin expansion, strong Position Measurement and Specialized Technologies performance, new-product momentum, and a positive outlook. The company also highlighted a strong balance sheet, growing order book, and continued investment in capacity and innovation. Offsetting issues included lower cash conversion, cyclical semiconductor exposure, currency and product-mix headwinds, China and European market challenges, ERP implementation problems, and volatility in additive manufacturing. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Full-Year Revenue and Profit Growth
Revenue increased by 14% to GBP 816 million, or 17% at constant FX. Adjusted operating profit grew by 36% to GBP 153 million, operating margin increased by 3 percentage points to 18.7%, and earnings per share grew 30%.
Negative Updates
Lower Cash Conversion
Cash conversion fell to 79% from 91% in the prior year, although it remained above the company's 70% target.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Full-Year Revenue and Profit Growth
Revenue increased by 14% to GBP 816 million, or 17% at constant FX. Adjusted operating profit grew by 36% to GBP 153 million, operating margin increased by 3 percentage points to 18.7%, and earnings per share grew 30%.
Read all positive updates
Company Guidance
The company said it is delivering high single-digit through-cycle revenue growth, with operating margin moving closer to the 20% threshold and indeed surpassed it in the second half, cash conversion remaining above its 70% target, and return on invested capital breaking back above 15%; for this year, it is looking at further strong progress on revenue, profit and operating margin. Manufacturing capacity, primarily for encoders, will increase with a doubling of CapEx on production assets, with capacity on a 12-month lead time and fully coming on stream by the end of this fiscal year. The year started at about, kind of, the same level as Q4 year-to-date, that run rate, sorry, not the total run rate, while markets are growing more than 5% per annum through cycle and the accessible market is up to GBP 7 billion.Renishaw Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 815.78M | 713.04M | 691.30M | 688.57M | 673.70M |
| Gross Profit | 483.66M | 330.83M | 421.74M | 434.00M | 438.78M |
| EBITDA | 167.21M | 142.95M | 156.07M | 166.39M | 174.02M |
| Net Income | 118.96M | 83.76M | 96.89M | 116.10M | 120.35M |
Balance Sheet | |||||
| Total Assets | 1.23B | 1.14B | 1.05B | 1.04B | 992.77M |
| Cash, Cash Equivalents and Short-Term Investments | 290.95M | 273.65M | 217.84M | 206.39M | 253.16M |
| Total Debt | 13.50M | 15.64M | 18.54M | 13.33M | 16.26M |
| Total Liabilities | 241.57M | 209.36M | 148.56M | 146.88M | 177.60M |
| Stockholders Equity | 984.71M | 926.44M | 903.40M | 897.24M | 815.75M |
Cash Flow | |||||
| Free Cash Flow | 82.98M | 101.62M | 49.30M | 6.27M | 82.58M |
| Operating Cash Flow | 121.32M | 147.90M | 124.08M | 90.87M | 122.24M |
| Investing Cash Flow | -42.44M | -128.64M | -31.50M | -94.68M | -6.65M |
| Financing Cash Flow | -62.21M | -55.81M | -52.70M | -61.40M | -55.89M |
Renishaw Technical Analysis
Positive
5060.00
Price Trends
5284.20
Positive
5163.40
Positive
4616.52
Positive
Market Momentum
178.19
Positive
58.06
Neutral
38.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RSW, the sentiment is Positive. The current price of 5060 is below the 20-day moving average (MA) of 5546.90, below the 50-day MA of 5284.20, and above the 200-day MA of 4616.52, indicating a bullish trend. The MACD of 178.19 indicates Positive momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RSW.
Renishaw Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £4.17B | 34.97 | 12.53% | 1.36% | 14.41% | 41.98% | |
66 Neutral | £335.29M | 83.05 | 3.33% | 0.80% | 12.73% | -26.74% | |
65 Neutral | £100.35M | 20.32 | 9.24% | ― | 12.56% | 23.36% | |
64 Neutral | £840.10M | 29.13 | 9.04% | 1.49% | 4.82% | 17.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | £323.01M | -9.04 | -24.38% | 3.68% | -2.68% | 47.33% | |
54 Neutral | £239.79M | -400.00 | -0.72% | 3.29% | -8.18% | -105.44% |
* Technology Sector Average
GB:RSW
Renishaw
5,710.00
2,116.67
58.91%
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GB:SDI
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GB:TTG
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GB:DSCV
discoverIE Group plc
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319.52
55.52%
Renishaw Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Renishaw posts record year as semiconductor and aerospace demand boosts margins
Positive
Sep 23, 2026
Renishaw reported a record financial year to 30 June 2026, with revenue rising 14% to £815.8m and adjusted profit before tax up 32%, driven by accelerating demand in semiconductor and aerospace and defence markets. The company expanded its ad...
Business Operations and StrategyFinancial Disclosures
Renishaw schedules FY2026 results release and investor presentation
Neutral
Sep 11, 2026
Renishaw plc will publish its results for the year ended 30 June 2026 on 23 September 2026, with an in-person presentation in London led by Chief Executive Will Lee and Chief Financial Officer John Shipsey. The event, which will be supported by a ...
Business Operations and StrategyFinancial Disclosures
Renishaw posts record Q4 and stronger-than-expected FY2026 profits
Positive
Jul 24, 2026
Renishaw reported accelerating growth through its 2026 financial year, capped by record fourth-quarter revenue of about £243m, up 27% year-on-year and 18% sequentially, driven by strong demand from semiconductor and electronics manufacturing ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.