Yahoo Finance At UK£9.00, Is Renew Holdings plc (LON:RNWH) Worth Looking At Closely?
Renew Holdings plc (LON:RNWH), is not the largest company out there, but it saw a decent share price growth of 11% on the AIM over the last few months. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Renew Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Renew Holdings
What Is Renew Holdings Worth?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 14% below our intrinsic value, which means if you buy Renew Holdings today, you’d be paying a fair price for it. And if you believe the company’s true value is £10.49, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Renew Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Renew Holdings?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -0.6% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Renew Holdings. This certainty tips the risk-return scale towards higher risk.
What This Means For You
Are you a shareholder? RNWH seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on RNWH for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on RNWH should the price fluctuate below its true value.
It can be quite valuable to consider what analysts expect for Renew Holdings from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.
If you are no longer interested in Renew Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
