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Renault SA
(OTC:RNLSY)
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Rating:53Neutral
Price Target:
$6.50
▲(2.52% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by weak financial performance signals: a sharp 2025 profitability collapse, higher leverage, and deteriorating/volatile free cash flow. Offsetting factors include attractive valuation (low P/E and high dividend yield) and a moderately positive setup from technical indicators. The latest earnings call adds support via reaffirmed 2026 margin and cash-flow guidance, but significant H2 cost and pricing headwinds temper confidence.
Positive Factors
Revenue and Product Momentum
Sustained revenue growth supported by new products and international launches indicates improving market reach. Renault, Alpine and LCV momentum provide multiple avenues for volume expansion over the next several quarters.
Negative Factors
Elevated Leverage and Weaker Equity Cushion
The sharp increase in debt relative to equity reduces financial flexibility and leaves less balance-sheet protection if vehicle demand or margins weaken. Higher leverage may constrain investment capacity and increase sensitivity to funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Product Momentum
Sustained revenue growth supported by new products and international launches indicates improving market reach. Renault, Alpine and LCV momentum provide multiple avenues for volume expansion over the next several quarters.
Read all positive factors
Renault SA (RNLSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.72B
Dividend Yield8.09%
Average Volume (3M)10.01K
Price to Earnings (P/E)9.0
Beta (1Y)0.69
Revenue Growth14.11%
EPS GrowthN/A
CountryUS
Employees100,541
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.66
Shares Outstanding1,478,610,000
10 Day Avg. Volume7,453
30 Day Avg. Volume10,011
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.46
Price to Sales (P/S)0.17
P/FCF Ratio-13.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Renault SA Business Overview & Revenue Model
Company Description
Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. The company operates through Automotive, Sales Financing, and ...
How the Company Makes Money
Renault primarily makes money by selling vehicles (new passenger cars and light commercial vehicles) through its brands Renault, Dacia, and Alpine to retail customers, fleets, and distributors/importers, generating revenue from vehicle invoicing a...
Renault SA Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and commercial momentum: solid H1 revenue growth (+10%), strong electrification progress, robust LCV EV growth (+48%), and a material contribution from Mobilize Financial Services (EUR 753m) underpinning profitability and cash. Management reconfirmed full-year guidance (circa 5.5% operating margin, ≈EUR 1bn automotive free cash flow) and highlighted concrete technology and procurement gains. Offsetting this optimism are meaningful near‑term headwinds — notably a EUR ~600m raw material and inflation impact (with ~EUR 400m expected in H2), ongoing pricing pressure and mix headwinds (Euro 6e‑bis costs), and localized credit risk in South America. Overall, achievements and strategic momentum outweigh the challenges, though H2 execution will be critical to offset significant cost inflation.Positive Updates
Strong Revenue Growth
Group revenue grew by +10% in H1 2026 versus H1 2025, driven by new product momentum and international launches.
Negative Updates
Raw Materials and Inflation Headwind
Management expects roughly EUR 600 million negative impact from raw materials and inflation for the full year; ~EUR 200 million occurred in H1 with an estimated ~2x impact in H2 (≈EUR 400 million), i.e., stronger cost pressure in the second half.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Group revenue grew by +10% in H1 2026 versus H1 2025, driven by new product momentum and international launches.
Read all positive updates
Company Guidance
Renault confirmed full‑year 2026 guidance of circa 5.5% operating margin and automotive free cash flow of ~EUR 1.0bn (after H1 delivered revenue +10%, operating margin 5.2% and automotive FCF >EUR 600m); Mobilize FS is expected to pay ~EUR 350m of dividends this year (EUR 250m in H1, ≈EUR 100m in H2) and ~EUR 500m p.a. on average over the midterm; the group still assumes a ~EUR 600m full‑year headwind from raw materials & inflation (≈EUR 200m in H1, with roughly twice the impact in H2), expects H2 CapEx & capitalized R&D to be slightly higher than last year, foresees a modest uptick in margin in H2 (in the high‑5% area but likely the lower half of the 5.3–5.7% range), and reiterated structural targets including ~EUR 400 savings per vehicle, a 20% reduction in future manufacturing costs and continued delivery of product‑led volume/mix improvements (order book ~2.1 months).Renault SA Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
33
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.53B | 57.92B | 56.23B | 52.38B | 46.39B | 41.66B |
| Gross Profit | 7.28B | 11.05B | 11.73B | 10.96B | 8.27B | 6.87B |
| EBITDA | -5.92B | -5.64B | 5.10B | 6.39B | 7.59B | 4.80B |
| Net Income | 957.12M | -10.50B | 752.00M | 2.20B | -354.00M | 888.00M |
Balance Sheet | ||||||
| Total Assets | 124.03B | 121.01B | 129.37B | 121.91B | 118.32B | 113.74B |
| Cash, Cash Equivalents and Short-Term Investments | 21.27B | 19.28B | 22.09B | 20.20B | 22.36B | 22.82B |
| Total Debt | 72.33B | 68.94B | 70.27B | 65.08B | 14.91B | 15.94B |
| Total Liabilities | 101.96B | 98.71B | 98.26B | 91.28B | 88.78B | 85.85B |
| Stockholders Equity | 20.55B | 20.79B | 30.31B | 29.75B | 28.95B | 27.32B |
Cash Flow | ||||||
| Free Cash Flow | 2.05B | -705.00M | 4.20B | 1.40B | 929.00M | -277.00M |
| Operating Cash Flow | 5.01B | 2.34B | 7.16B | 4.46B | 3.61B | 2.41B |
| Investing Cash Flow | -3.67B | -3.30B | -2.04B | -2.23B | -3.29B | -1.62B |
| Financing Cash Flow | 600.15M | -1.33B | -3.23B | -3.08B | -478.00M | -629.00M |
Renault SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $230.84B | 8.63 | 11.67% | 3.03% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.44T | 309.69 | 4.58% | ― | 11.75% | -37.64% | |
59 Neutral | $75.57B | 42.81 | 3.04% | 0.81% | -1.11% | -67.59% | |
54 Neutral | $55.35B | -7.51 | -18.90% | 4.29% | 1.47% | -315.47% | |
53 Neutral | $9.72B | 8.99 | 4.64% | 8.09% | 14.11% | ― | |
51 Neutral | $41.43B | -42.79 | -1.40% | 4.09% | 0.81% | -128.78% |
* Consumer Cyclical Sector Average
RNLSY
Renault SA
6.87
-0.84
-10.92%
F
Ford Motor
13.97
2.81
25.19%
GM
General Motors
85.62
27.62
47.62%
HMC
Honda Motor Company
32.52
-0.32
-0.99%
TSLA
Tesla
365.44
-30.50
-7.70%
TM
Toyota Motor
198.20
2.07
1.06%
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.