Renault SA (RNLSY) AI Stock Analysis

• Market Cap: $13.15B
• Dividend Yield: 5.35%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.74
• Revenue Growth: 3.90%
• EPS Growth: N/A
• Country: US
• Employees: 98,636
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): -0.40
• Shares Outstanding: 1,478,610,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,532
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Renault SA's stock score reflects a strong financial recovery and favorable valuation, but high leverage and lack of clear guidance from the earnings call introduce risks. Positive technical indicators provide some confidence in the stock's short-term prospects.

Renault SA Business Overview & Revenue Model

Company Description

Renault SA designs, manufactures, sells, and distributes vehicles in France and internationally. The company operates through Automotive, AVTOVAZ, Sales Financing, and Mobility Services segments. It offers passenger and light commercial, and electric vehicles primarily under the Renault, Dacia, Renault Samsung Motors, Alpine, LADA, Jinbei & Huaasong, and Eveasy, as well as under the Nissan, Datsun, and Infiniti brands. The company also sells powertrains and used vehicles, and spare parts; and provides various services, including vehicle sales financing, rental, maintenance, and service contracts. In addition, it offers finance for the purchase on inventories of new and used vehicles, and replacement parts; designs, produces, and sells converted vehicles; Renault EASY CONNECT for Fleet, a connected service for business users; and produces driving aids, such as steering-wheel mounted accelerators and brakes, multifunction remote control units to operate indicators, lights and horns, pedal transfers, etc.; and manual or electric swivel seats. Renault SA was founded in 1898 and is based in Boulogne-Billancourt, France.

How the Company Makes Money

Renault generates revenue primarily through the sale of vehicles and related services. Its key revenue streams include passenger car sales, light commercial vehicles, and electric vehicles. Additionally, Renault earns income from financing solutions offered through its subsidiary, RCI Banque, which provides automotive financing and insurance services. The company's earnings are also supported by its participation in the Renault-Nissan-Mitsubishi Alliance, which allows for cost-sharing, joint development of technologies, and access to a broader market. Moreover, Renault benefits from various strategic partnerships and collaborations focused on innovation and expansion in emerging markets.

Renault SA Financial Statement Overview

Summary

Renault SA shows a positive financial performance with a strong revenue growth rate and improved profitability. However, high leverage remains a concern, and there is room for operational improvements and enhanced financial stability.

Income Statement

Renault SA experienced a positive revenue growth rate of 12.9% from 2022 to 2023, reflecting a recovery trend from previous periods. The gross profit margin for 2023 was 20.9%, indicating solid production efficiency. The net profit margin improved to 4.2% in 2023, showcasing enhanced profitability. However, EBIT margin of 4.7% and EBITDA margin of 12.2% suggest room for operational improvements.

Balance Sheet

The debt-to-equity ratio is high at 2.19, signifying potential leverage risks. Nevertheless, the return on equity (ROE) improved to 7.4% in 2023, indicating better returns for shareholders. The equity ratio stands at 24.4%, suggesting a moderate level of equity financing and potential for improving financial stability.

Cash Flow

Renault SA achieved a free cash flow growth rate of 50.5% from 2022 to 2023, signaling strong cash generation capabilities. The operating cash flow to net income ratio of 2.03 indicates efficient cash management. However, a free cash flow to net income ratio of 0.64 suggests that not all net income is translating into free cash flow, highlighting areas for cash flow optimization.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
52.48B	52.38B	46.39B	41.66B	43.47B	55.54B
	Gross Profit
10.98B	10.96B	8.27B	6.87B	6.01B	9.93B
	EBIT
4.23B	2.48B	2.60B	1.15B	-337.00M	2.66B
	EBITDA
4.80B	6.39B	7.59B	4.80B	3.65B	5.62B
	Net Income Common Stockholders
1.40B	2.20B	-338.00M	888.00M	-8.01B	-141.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.36B	20.20B	22.36B	22.82B	22.12B	16.36B
	Total Assets
122.17B	121.91B	118.32B	113.74B	115.74B	122.17B
	Total Debt
59.04B	65.08B	64.34B	61.96B	64.89B	59.04B
	Net Debt
44.06B	45.39B	42.57B	40.03B	43.20B	44.06B
	Total Liabilities
86.84B	91.28B	88.78B	85.85B	90.40B	86.84B
	Stockholders Equity
34.56B	29.75B	28.80B	27.32B	24.77B	34.56B
Cash Flow		Free Cash Flow
4.42B	1.40B	929.00M	-277.00M	1.54B	478.00M
	Operating Cash Flow
7.03B	4.46B	3.61B	2.41B	5.75B	5.60B
	Investing Cash Flow
-2.29B	-2.23B	-3.24B	-1.62B	-4.23B	-5.12B
	Financing Cash Flow
-1.99B	-3.08B	-532.00M	-629.00M	5.59B	-243.00M

Renault SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNLSY, the sentiment is Negative. The current price of 8.99 is below the 20-day moving average (MA) of 10.20, below the 50-day MA of 10.19, and below the 200-day MA of 9.46, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 25.98 is Positive, neither overbought nor oversold. The STOCH value of 13.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNLSY.

Renault SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	81 Outperform	$28.40B	25.52	12.22%	―	10.28%	-29.75%
F	77 Outperform	$42.23B	8.51	11.47%	5.65%	3.03%	28.54%
HMC	74 Outperform	$47.74B	8.50	6.54%	3.68%	4.37%	6.93%
GM	73 Outperform	$47.37B	7.10	8.88%	1.22%	7.76%	-14.17%
RNLSY	73 Outperform	$13.15B	15.25	2.53%	5.35%	3.90%	―
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
XPEV	53 Neutral	$17.87B	―	-15.52%	―	50.45%	49.81%