PowerHouse Energy Group (PHE); reports ongoing commercialisation of DMG® process

Renewi

LN: RWI

£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
%
1m
3m
12m
Actual 27.9 28.2 (49.6)
Relative* 30.0 25.9 (46.4)
52-week high/low 86.9p/21.9p
*% relative to local index
Key management
Colin Matthews Chairman
Otto de Bont CEO
Toby Woolrych CFO

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