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Renishaw
(LSE:RSW)
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Rating:75Outperform
Price Target:
5,159.00 p
▲(1.96% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by solid underlying financial strength (notably a very strong, low-leverage balance sheet) and a supportive earnings outlook with cost savings and growth guidance. This is tempered by margin deterioration in the financials and near-term technical overbought signals, while valuation and dividend yield provide only moderate support.
Positive Factors
Balance Sheet Strength
Extremely low leverage provides durable financial flexibility: supports capital allocation, withstands cyclical demand swings, funds R&D and targeted CapEx without large refinancing risk, and preserves ability to sustain operations during multi-quarter downturns.
Negative Factors
Margin Deterioration
A large gross margin drop signals structural cost pressures or adverse mix shifts that can persist beyond a single quarter. Unless reversed, lower margins erode operating leverage, constrain reinvestment capacity, and limit durable profit growth even if revenues rise modestly.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage provides durable financial flexibility: supports capital allocation, withstands cyclical demand swings, funds R&D and targeted CapEx without large refinancing risk, and preserves ability to sustain operations during multi-quarter downturns.
Read all positive factors
Renishaw (RSW) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.69B
Dividend Yield1.57%
Average Volume (3M)74.44K
Price to Earnings (P/E)48.8
Beta (1Y)0.88
Revenue Growth4.99%
EPS Growth-24.08%
CountryUK
Employees4,975
SectorTechnology
Sector Strength88
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.02
Shares Outstanding72,756,860
10 Day Avg. Volume62,830
30 Day Avg. Volume74,438
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)2.25
Price to Sales (P/S)2.92
P/FCF Ratio20.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£5,898.00Price Target Upside16.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2
Revenue Forecast (FY)£876.29M
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:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 23, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and strategic picture: record H1 revenue growth, strong regional results in the Americas and APAC, significant progress in emerging businesses (Additive Manufacturing and inductive encoders), successful product launches, and clear cost-reduction benefits improving margins and cash management. Offsetting these positives were material currency headwinds, regional weakness in EMEA (notably German machine tool demand), working capital pressures, ERP implementation disruption, and inherent order-book volatility. Management provided positive revenue and profit guidance and highlighted a strong innovation pipeline, but acknowledged short-term uncertainties.Positive Updates
Record First-Half Revenue Growth
Reported revenue up 7.1% year-on-year and up 11.5% at constant currency, driven by a notable Q2 pickup and growth across all three reporting segments.
Negative Updates
Material Currency Headwinds
Currency movements created a margin headwind of c.3.6 percentage points (GBP13.2m combined impact: ~GBP8m less contract income and ~GBP5.2m operating margin movement) despite hedging activity that provided c.GBP5m of offset.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Revenue Growth
Reported revenue up 7.1% year-on-year and up 11.5% at constant currency, driven by a notable Q2 pickup and growth across all three reporting segments.
Read all positive updates
Company Guidance
Renishaw gave positive trading guidance for FY26—expecting “strong revenue and profit growth”—supported by H1 results: revenue +7.1% reported (+11.5% constant currency), operating profit +11.4% to £57.5m and PBT +11.5% to £64.1m. Management reiterated a flat dividend of 16.8p, full‑year CapEx of ~£40m (H1 £17m), an adjusted effective tax rate around 21.8% for H2, cash conversion ~68% and cash balances just over £240m. They expect to realize ~£23m of annualized cost savings (c.£9m delivered in H1), have cut gross engineering costs by 8.5% and reduced headcount ~7% to just below 5,000, while managing c.£13.2m of currency headwinds (c.£5m hedge income). Key segment/region metrics underpinning the outlook: Industrial Metrology +4.3% (8.8% cc), Position Measurement +7.4% (~12% cc, 23.4% operating margin), Specialized Technologies >25% cc (margin up ≈22ppt to just short of breakeven), Americas +15% (>20% cc), APAC >10% (>15% cc) and EMEA -5%; ROIC rose to 13.2% (15% target).Renishaw Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 737.26M | 713.04M | 691.30M | 688.57M | 673.70M | 567.44M |
| Gross Profit | 383.90M | 330.83M | 421.74M | 434.00M | 438.78M | 369.64M |
| EBITDA | 122.99M | 133.90M | 156.07M | 166.39M | 174.02M | 172.36M |
| Net Income | 74.15M | 83.76M | 96.89M | 116.10M | 120.35M | 111.46M |
Balance Sheet | ||||||
| Total Assets | 1.11B | 1.14B | 1.05B | 1.04B | 992.77M | 856.88M |
| Cash, Cash Equivalents and Short-Term Investments | 240.88M | 273.65M | 217.84M | 206.39M | 253.16M | 215.01M |
| Total Debt | 14.66M | 15.64M | 18.54M | 13.33M | 16.26M | 20.01M |
| Total Liabilities | 199.53M | 209.36M | 148.56M | 146.88M | 177.60M | 153.55M |
| Stockholders Equity | 913.76M | 926.44M | 903.40M | 897.24M | 815.75M | 703.91M |
Cash Flow | ||||||
| Free Cash Flow | 67.89M | 101.62M | 49.30M | 6.27M | 82.58M | 111.81M |
| Operating Cash Flow | 108.12M | 147.90M | 124.08M | 90.87M | 122.24M | 135.53M |
| Investing Cash Flow | -48.33M | -128.64M | -31.50M | -94.68M | -6.65M | -134.43M |
| Financing Cash Flow | -59.24M | -55.81M | -52.70M | -61.40M | -55.89M | -17.84M |
Renishaw Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.69B | 48.84 | 8.06% | 1.57% | 4.99% | -24.08% | |
72 Outperform | £746.86M | 25.90 | 9.04% | 1.67% | 4.82% | 17.80% | |
65 Neutral | £94.12M | 19.15 | 9.24% | ― | 12.56% | 23.36% | |
62 Neutral | £329.82M | 81.69 | 3.33% | 0.81% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | £289.10M | -8.25 | -24.38% | 3.68% | -2.68% | 47.33% | |
54 Neutral | £266.43M | 48.78 | 6.24% | 2.88% | 9.13% | -47.18% |
* Technology Sector Average
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Renishaw Corporate Events
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 ...
Business Operations and StrategyShareholder Meetings
Renishaw outlines strategic priorities and growth plans at Capital Markets Day
Positive
Jun 16, 2026
Renishaw is a global supplier of high-precision metrology and manufacturing systems that support customers’ product and process innovation across the Americas, EMEA and APAC. The company concentrates its research and development in the UK, w...
Business Operations and StrategyFinancial Disclosures
Renishaw posts record nine-month revenues on semiconductor and aerospace demand
Positive
May 6, 2026
Renishaw reported record revenue of £571.6m for the nine months to 31 March 2026, up 9.5% at actual exchange rates and 13.5% at constant exchange rates, driven by strong demand in semiconductor and electronics manufacturing and aerospace and ...
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.