Fact based stock research
Renault (ENXTPA:RNO)

FR0000131906

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Renault stock research in summary

group.renault.com

ANALYSIS: With an Obermatt Combined Rank of 96 (better than 96% compared with investment alternatives), Renault (Automobile Manufacturers, France) shares have much better financial characteristics than comparable stocks. Shares of Renault are a good value (attractively priced) with a consolidated Value Rank of 99 (better than 99% of alternatives), show above-average growth (Growth Rank of 80) but are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 96, is a strong buy recommendation based on Renault's financial characteristics. As the company Renault's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 99) and above-average growth (Obermatt Growth Rank of 80), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 39) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	99
Growth Rank	80
Safety Rank	39
Combined Rank	96

Country	France
Industry	Automobile Manufacturers
Index	CAC 40, CAC All, SBF 120, Customer Focus EU, Human Rights, Low Waste, Recycling, Sound Pay Europe
Size class	XX-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Renault

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	98	99	99
GROWTH
GROWTH	25	77	91	80
SAFETY
SAFETY	1	19	48	39
SENTIMENT
SENTIMENT	n/a	42	51	^new
360° VIEW
360° VIEW	n/a	76	88	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Renault is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	50	98	99	99
GROWTH
GROWTH	25	77	91	80
SAFETY
SAFETY	1	19	48	39
COMBINED
COMBINED	4	78	96	96

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Renault the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 99 (better than 99% compared with alternatives) for 2024, Renault shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Renault. Price-to-Sales is 83 which means that the stock price compared with what market professionals expect for future sales is lower than for 83% of comparable companies, indicating a good value for Renault's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 95% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 93. Compared with other companies in the same industry, dividend yields of Renault are expected to be higher than for 95% of all competitors (a Dividend Yield rank of 95). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 99, is a buy recommendation based on Renault's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Renault based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	86	93	87	83
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	11	95	97	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	97	100	95	93
DIVIDEND YIELD
DIVIDEND YIELD	1	74	83	95
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	50	98	99	99

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Renault; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 80 (better than 80% compared with alternatives) for 2024, Renault shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Renault. Profit Growth has a rank of 59 which means that currently professionals expect the company to grow its profits more than 59% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 98, and Stock Returns has a rank of 71 which means that the stock returns have recently been above 71% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 37 (63% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 80, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	12	68	50	37
PROFIT GROWTH
PROFIT GROWTH	44	66	96	59
CAPITAL GROWTH
CAPITAL GROWTH	n/a	85	89	98
STOCK RETURNS
STOCK RETURNS	10	26	61	71
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25	77	91	80

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Renault.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 39 (better than 39% compared with alternatives), the company Renault has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Renault is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Renault. Refinancing is at 61, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Liquidity is also good at 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 7, which means the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 39 (worse than 61% compared with alternatives), Renault has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Renault could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Renault and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	1	11	9	7
REFINANCING
REFINANCING	3	80	90	61
LIQUIDITY
LIQUIDITY	21	8	51	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1	19	48	39

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Renault and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	43	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	54	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	29	67	^new
MARKET PULSE
MARKET PULSE	n/a	33	26	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	42	51	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Renault.
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