Yahoo Finance Should You Consider Renew Holdings plc (LON:RNWH)?
Attractive stocks have exceptional fundamentals. In the case of Renew Holdings plc (LON:RNWH), there's is a financially-robust company with a great history and a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Renew Holdings here.
Solid track record established dividend payer
In the previous year, RNWH has ramped up its bottom line by 73%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 25% return to shareholders, which is an optimistic signal for the future.
With a debt-to-equity ratio of 32%, RNWH’s debt level is acceptable. This implies that RNWH has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. RNWH seems to have put its debt to good use, generating operating cash levels of 1.12x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Renew Holdings, I've put together three fundamental aspects you should look at:
Valuation: What is RNWH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RNWH is currently mispriced by the market.
Dividend Income vs Capital Gains: Does RNWH return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from RNWH as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RNWH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
