£284.1m market cap
35.5p 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
Management flagged stronger Q4 trading, in line with its expectations. Netherlands soil remediation activities require regulatory approval and a prudent stance has been taken over resuming shipments there, which is the primary driver of our significant estimate reduction. In this light, the steps being taken for debt management, including a proposed dividend reduction, are entirely logical. Renewi’s rating is at depressed levels – we feel due to earnings uncertainty and higher debt levels – but potential resolutions to both issues are visible. The company is still yielding 4.4%.
Y/E Mar |
Revenue (€m) |
EBITDA (€m) |
PBT (€m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 779.2 | 81.6 | 26.0 | 3.7 | 11.2 | 7.9 |
| 2018A | 1779.1 | 176.3 | 59.1 | 5.5 | 7.5 | 2.3 |
| 2019E | 1792.3 | 186.8 | 62.3 | 5.8 | 7.1 | 3.2 |
| 2020E | 1799.4 | 184.0 | 49.2 | 4.6 | 9.0 | 2.5 |
| Last updated on 17/05/2019 | ||||||
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 17/05/2019
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (€m) | 542.9 |
| Forecast gearing ratio (%) | 153 |
Price performance
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1m |
3m |
12m |
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Key management |
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|---|---|
| Colin Matthews | Chairman |
| Otto de Bont | CEO |
| Toby Woolrych | CFO |
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