Renasant (RNST) AI Stock Analysis

• Market Cap: $3.63B
• Dividend Yield: 2.27%
• Average Volume (3M): 525.57K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.09
• Revenue Growth: 21.87%
• EPS Growth: -3.27%
• Country: US
• Employees: 2,200
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.01
• Shares Outstanding: 95,019,325
• 10 Day Avg. Volume: 423,162
• 30 Day Avg. Volume: 525,573
• PEG Ratio: 0.39
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 18.33
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: 17.53
• 1Y Price Target: $43.33
• Price Target Upside: 11.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $44.00 ▲(13.64% Upside)

Renasant's overall score is driven by strong financial growth and successful merger integration, as highlighted in the earnings call. The technical analysis supports a bullish trend, while valuation remains reasonable. However, challenges in profitability margins and cash flow performance slightly offset these positives.

Positive Factors

Merger Success

Successful merger integration with The First Bancshares enhances Renasant's asset base and operational footprint, strengthening its market position.

Revenue Growth

Strong loan and deposit growth indicate robust demand for Renasant's banking services, supporting sustained revenue expansion.

Improved Asset Quality

Improved asset quality with stable nonperforming loans enhances financial stability and reduces potential future credit risks.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising operational costs or competitive pressures, potentially impacting long-term profitability.

Elevated Charge-offs

Higher than expected charge-offs could indicate credit quality issues, which may strain future earnings and require increased provisions.

Weak Cash Flow Performance

Weakening cash flow performance limits Renasant's ability to reinvest in growth opportunities and manage financial obligations efficiently.

Renasant Business Overview & Revenue Model

Company Description

Renasant Corporation (RNST) is a regional financial services holding company based in Tupelo, Mississippi. It operates through its banking subsidiary, Renasant Bank, which offers a wide range of banking products and services, including personal and business banking, commercial lending, mortgage banking, and wealth management. Renasant primarily serves customers in the southeastern United States, focusing on providing tailored financial solutions to both individuals and businesses.

How the Company Makes Money

Renasant generates revenue through multiple key streams, primarily through net interest income and non-interest income. Net interest income is earned from the difference between the interest income generated from loans and the interest expense on deposits and other borrowings. The company offers various loan products, including commercial loans, consumer loans, and residential mortgages, which contribute significantly to its interest income. Additionally, Renasant earns non-interest income through fees for services such as asset management, trust services, and transaction fees related to deposit accounts. The bank's strategic partnerships and community-focused approach enhance customer loyalty, driving growth in deposits and loans, which are crucial for its revenue generation. Moreover, Renasant's expansion efforts and acquisitions can also play a significant role in increasing its overall earnings.

Renasant Financial Statement Overview

Summary

Renasant exhibits solid financial health with strong revenue growth, efficient operations, and robust cash flow management. While leverage has increased, the company maintains a strong equity position. Overall, Renasant is well-positioned within its industry, with a strong trajectory for future growth.

Income Statement

Renasant has demonstrated strong and consistent revenue growth, with a notable increase in total revenue from 2020 to TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust, though slightly declining from earlier years. Net profit and EBIT margins show stability, reflecting efficient operational management. The consistent growth in EBIT and EBITDA margins highlights improved operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity ratio and a manageable debt-to-equity ratio, indicating financial stability. Stockholders' equity has grown consistently, supporting a strong ROE. However, the increase in total liabilities suggests potential leverage risk, which should be monitored closely.

Cash Flow

Renasant's cash flow statements reveal positive free cash flow growth with a solid operating cash flow to net income ratio, indicating strong cash generation relative to earnings. Free cash flow growth is slightly volatile, yet overall positive trends are evident. The company effectively manages capital expenditures, further strengthening cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.04B	909.77M	691.06M	695.67M	731.62M
Gross Profit	682.30M	653.18M	616.19M	606.68M	653.15M	573.44M
EBITDA	229.81M	277.25M	212.42M	254.05M	270.18M	138.12M
Net Income	159.74M	195.46M	144.68M	166.07M	175.89M	83.65M
Balance Sheet
Total Assets	26.62B	18.03B	17.36B	16.99B	16.81B	14.93B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.92B	1.72B	2.11B	4.26B	1.98B
Total Debt	962.33M	538.63M	736.98M	1.14B	485.16M	496.31M
Total Liabilities	22.85B	15.36B	15.06B	14.85B	14.60B	12.80B
Stockholders Equity	3.78B	2.68B	2.30B	2.14B	2.21B	2.13B
Cash Flow
Free Cash Flow	120.44M	115.78M	126.92M	559.21M	122.14M	53.97M
Operating Cash Flow	142.31M	129.43M	148.55M	574.04M	142.66M	82.24M
Investing Cash Flow	-516.74M	-298.04M	-55.40M	-2.04B	-660.00M	-1.27B
Financing Cash Flow	901.13M	459.30M	132.21M	167.64M	1.76B	1.40B

Renasant Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.72
• 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 RNST, the sentiment is Neutral. The current price of 38.72 is above the 20-day moving average (MA) of 38.62, above the 50-day MA of 37.88, and above the 200-day MA of 35.54, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 21.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNST.

Renasant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	81 Outperform	$3.54B	11.67	18.38%	3.22%	3.10%	3.14%
UCB	77 Outperform	$3.97B	14.77	7.81%	2.95%	3.00%	42.78%
RNST	76 Outperform	$3.63B	15.25	5.21%	2.27%	21.87%	-3.27%
WSFS	75 Outperform	$3.17B	12.33	10.32%	1.13%	0.30%	1.46%
FULT	73 Outperform	$3.52B	11.29	10.08%	3.67%	17.61%	1.89%
FHB	72 Outperform	$3.21B	13.28	9.40%	4.07%	-2.56%	12.05%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%

Renasant Corporate Events

Renasant Completes Merger with The First Bancshares

In the second quarter of 2025, Renasant Corporation completed its merger with The First Bancshares, Inc., significantly expanding its asset base and operational footprint. The merger resulted in net organic loan growth and deposit growth, despite incurring significant merger-related expenses. The company’s net income was impacted by these expenses and provisions for credit losses, but it achieved an adjusted diluted EPS of $0.69. The merger positions Renasant for enhanced competitive positioning in the financial services industry, although it faces challenges such as integrating acquisitions and managing economic and regulatory risks.

Renasant Reports Q2 2025 Earnings Post-Merger Completion

On July 22, 2025, Renasant Corporation announced its earnings for the second quarter of 2025, highlighting the completion of its merger with The First Bancshares, Inc. on April 1, 2025. The merger significantly impacted Renasant’s financials, with net income reported at $1.0 million, including substantial merger-related expenses and acquisition provisions. The merger contributed to increased net interest income and noninterest income, as well as organic growth in loans and deposits. Despite a decrease in book value per share due to the merger, the company reported progress in integrating the acquired operations and achieving cost savings.