Renishaw (RSW) AI Stock Analysis

• Market Cap: £2.68B
• Dividend Yield: 1.52%
• Average Volume (3M): 132.84K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.09
• Revenue Growth: 3.15%
• EPS Growth: -13.57%
• Country: UK
• Employees: 5,256
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.62
• Shares Outstanding: 72,788,540
• 10 Day Avg. Volume: 117,334
• 30 Day Avg. Volume: 132,841
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £3,437.50
• Price Target Upside: -6.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: 4,048.00p ▲(10.30% Upside)

Renishaw's overall stock score reflects a strong financial foundation and positive technical trends, tempered by valuation concerns and mixed earnings call insights. The company's robust balance sheet and cash flow management are significant strengths, while overbought technical indicators and premium valuation present potential risks.

Positive Factors

Product Innovation

Renishaw's focus on product innovation with successful launches enhances its competitive edge, supporting long-term growth across diverse sectors.

Strong Cash Position

A robust cash position provides Renishaw with flexibility for strategic investments, acquisitions, or returning value to shareholders, bolstering financial stability.

Cost Reduction Success

Effective cost management through structural changes enhances profitability and operational efficiency, positioning Renishaw for sustainable growth.

Negative Factors

Declining Profit Margins

Falling profit margins indicate rising costs and potential pricing pressures, which could challenge Renishaw's ability to maintain profitability long-term.

Additive Manufacturing Revenue Decline

A decline in additive manufacturing revenue highlights sector variability and challenges, potentially impacting Renishaw's growth in this innovative area.

Weakness in Automotive Sector

Continued struggles in the automotive sector could hinder Renishaw's revenue growth and market share in key regions, affecting overall performance.

Renishaw Business Overview & Revenue Model

Company Description

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services metrology and healthcare products worldwide. The company offers co-ordinate measuring machine (CMM) products, machine tool probe and software, performance measurement systems, gauging systems, fixtures, and styli for touch probe systems; interferometric laser, magnetic, and optical encoders; additive manufacturing systems; plastics and metal vacuum casting machines; and mapping sensors. It also provides healthcare products, such as dental scanners, neurosurgical robots and accessories, neurosurgical planning software, drug delivery systems, Raman microscopes, craniomaxillofacial customized implants, analysers, and hybrid Raman systems. In addition, the company offers asset financing and travel agency services. It serves the aerospace, agriculture, automotive, construction, consumer electronics, healthcare, power generation, resource exploration, energy, heavy, medical, and precision manufacturing industries, as well as scientific, research, and analysis industries. The company was incorporated in 1973 and is headquartered in Wotton-under-Edge, the United Kingdom.

How the Company Makes Money

Renishaw generates revenue through multiple streams, primarily from the sale of metrology products, which include probe systems, software, and calibration equipment. The company also earns income from its healthcare division, which focuses on dental and surgical products, including dental CAD/CAM systems and neurostimulation devices. Key revenue streams include direct product sales, after-sales services, and maintenance contracts. Additionally, Renishaw benefits from partnerships with other technology companies and institutions, contributing to its research and development efforts, which help to drive innovation and expand its product offerings. The company also sees growth from international markets, which represent a significant portion of its revenue base, owing to its global presence and distribution networks.

Renishaw Financial Statement Overview

Summary

Renishaw demonstrates solid revenue growth and operational efficiency with a robust balance sheet. However, the net profit margin has decreased, impacting overall profitability.

Income Statement

Renishaw's income statement shows stable revenue growth with a 1.41% increase in the latest year. Gross profit margin remains robust at 46.8%, although it has slightly decreased from previous years. The net profit margin has also decreased to 14.0%, indicating some pressure on profitability. However, the company maintains a solid EBIT margin of 15.7% and an EBITDA margin of 22.6%, demonstrating operational efficiency.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The equity ratio is high at 85.9%, reflecting a strong equity base. Return on equity stands at 10.7%, which is decent, though it has declined from previous levels, suggesting reduced profitability on equity.

Cash Flow

Renishaw exhibits a positive free cash flow growth of 686.9% year-over-year, signaling significant improvement in cash generation. The operating cash flow to net income ratio is 1.28, which shows strong cash flow relative to net income. The free cash flow to net income ratio is 0.51, indicating moderate free cash flow relative to net earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	713.04M	691.30M	688.57M	673.70M	567.44M
Gross Profit	330.83M	421.74M	434.00M	438.78M	369.64M
EBITDA	133.90M	156.07M	166.39M	174.02M	172.36M
Net Income	83.76M	96.89M	116.10M	120.35M	111.46M
Balance Sheet
Total Assets	1.14B	1.05B	1.04B	992.77M	856.88M
Cash, Cash Equivalents and Short-Term Investments	273.65M	217.84M	206.39M	253.16M	215.01M
Total Debt	15.64M	18.54M	13.33M	16.26M	20.01M
Total Liabilities	209.36M	148.56M	146.88M	177.60M	153.55M
Stockholders Equity	926.44M	903.40M	897.24M	815.75M	703.91M
Cash Flow
Free Cash Flow	101.62M	49.30M	6.27M	82.58M	111.81M
Operating Cash Flow	147.90M	124.08M	90.87M	122.24M	135.53M
Investing Cash Flow	-128.64M	-31.50M	-94.68M	-6.65M	-134.43M
Financing Cash Flow	-55.81M	-52.70M	-61.40M	-55.89M	-17.84M

Renishaw Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3670.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3670 is above the 20-day moving average (MA) of 3585.75, above the 50-day MA of 3300.30, and above the 200-day MA of 2959.12, indicating a bullish trend. The MACD of 120.55 indicates Positive momentum. The RSI at 65.59 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSW	69 Neutral	£2.68B	31.96	9.15%	1.52%	3.15%	-13.57%
DSCV	68 Neutral	£551.04M	22.48	8.07%	2.17%	-3.23%	58.34%
SXS	63 Neutral	£4.06B	69.93	4.26%	2.06%	0.07%	-78.33%
JDG	63 Neutral	£401.63M	36.48	12.24%	1.78%	5.46%	-26.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	61 Neutral	£158.89M	29.18	4.79%	2.24%	1.74%	359.50%
SOLI	55 Neutral	£100.90M	197.22	0.81%	1.41%	-23.42%	-94.25%

Renishaw Corporate Events

Renishaw Unveils Strategic Plans at Capital Markets Day

Renishaw hosted a Capital Markets Day to outline strategic progress and financial goals, including new product releases and changes to segmental reporting. The company aims to drive revenue growth through innovation, improve margins, and enhance shareholder returns with a new cost reduction program targeting £20 million in savings. The event highlighted significant investments in manufacturing capacity and introduced new business segments to better align with market demands.

The most recent analyst rating on (GB:RSW) stock is a Buy with a £4180.00 price target. To see the full list of analyst forecasts on Renishaw stock, see the GB:RSW Stock Forecast page.

Renishaw Reports Steady Q3 Growth Amid Strategic Restructuring

Renishaw plc reported steady progress in its third quarter, with revenue reaching £180.7 million, marking a 5% increase year-on-year. The company experienced growth in machine tool probes and position encoders, while also announcing the closure of its loss-making drug delivery segment in the Neurological business to enhance profitability. Despite challenges such as tariffs and increased labor costs, Renishaw maintains a strong balance sheet and continues to focus on productivity and strategic investments to support future growth.