£251.6m market cap
31.45p last close
Renewi is a waste-to-product company with operations primarily in the UK, the Netherlands and Belgium, and activities spanning the collection, processing and resale of industrial, hazardous and municipal waste.
Investment summary
The previously flagged intention to sell Reym has crystallised through the announced disposal to REMONDIS Group for an EV of €64m (or 5.4x EBITDA). This move modestly dilutes our earnings estimates, further reduces net debt and reinforces Renewi’s waste-to-product recycling credentials. Gearing levels may still be high for risk-averse investors currently but the trend is clearly downwards. P/E multiples remain firmly in single digits currently and our estimates show a yield crossover in FY21.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 1760.3 | 176.3 | 63.0 | 5.9 | 5.3 | 1.8 |
| 2019A | 1780.7 | 179.7 | 63.1 | 6.0 | 5.2 | 2.9 |
| 2020E | 1703.5 | 164.4 | 47.4 | 4.5 | 7.0 | 1.9 |
| 2021E | 1758.3 | 183.8 | 69.0 | 6.5 | 4.8 | 1.5 |
| Last updated on 13/09/2019 | ||||||
Industry outlook
The Dutch waste market, accounting for the largest single business within Renewi, has returned to growth as the economy has recovered, boosted in particular by stronger construction activity.
Last updated on 13/09/2019
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (£m) | N/A |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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| *% relative to local index | |||||||||||||||
Key management |
|
|---|---|
| Colin Matthews | Chairman |
| Otto de Bont | CEO |
| Toby Woolrych | CFO |
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