Renishaw (RNSHF) AI Stock Analysis

Renishaw

(Other OTC:RNSHF)

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Positive Factors

Conservative balance sheetExtremely 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 exposureDependence 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.

Renishaw (RNSHF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.88B
Dividend Yield: 1.26%
Average Volume (3M): 239
Price to Earnings (P/E): 32.5
Beta (1Y): 0.79
Revenue Growth: 18.70%
EPS Growth: 47.45%
Country: US
Employees: 5,254
Sector: Technology
Sector Strength: 61
Industry: Industrial - Machinery

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 innovat...

Renishaw Earnings Call Summary

Earnings Call Date:Sep 22, 2026(Q4-2026)|% Change Since:-1.13%|Next Earnings Date:Feb 09, 2027

Earnings Call SentimentPositive

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.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

RNSHF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:DSCV	69Neutral	GBP 793.96M	27.53	9.04%	1.57%	4.82%	17.80%
GB:SDI	65Neutral	GBP 99.30M	20.11	9.24%	―	12.56%	23.36%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GB:TTG	56Neutral	GBP 347.99M	-9.73	-24.38%	―	-2.68%	47.33%
GB:JDG	54Neutral	GBP 226.46M	-377.78	-0.72%	3.48%	-8.18%	-105.44%

* Technology Sector Average

Performance Comparison

RNSHF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RNSHF	Renishaw plc	71.47	26.59	59.24%
GB:JDG	Judges Scientific	3400.00	-2158.77	-38.84%
GB:SDI	Sdi Group Plc	94.50	11.00	13.17%
GB:TTG	TT Electronics	195.00	43.60	28.80%
GB:DSCV	Discoverie Group	826.00	250.52	43.53%

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.

Renishaw AI Stock Analysis