Renewi (LSE: RWI)

Last close As at 13/04/2024

GBP5.89

−6.00 (−1.01%)

Market capitalisation

GBP475m

Renewi is a leading waste-to-product company in some of the world’s most advanced circular economies, with operations primarily in the Netherlands, Belgium and the UK. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste.

Post its initial approach, Macquarie decided not to make an offer for the group, while the Renewi board’s view was that the 810p proposed offer significantly undervalued the group. At the capital markets day in October, management set targets for ‘at least’ 5% organic sales growth, high single-digit operating margins, free cash flow generation of at least 40% of EBITDA and a return on capital of over 15%, offering an attractive set of financials if fully achieved.

Latest Insights

View More

Industrials | Update

Renewi — Softer construction market affecting profitability

Industrials | Update

Renewi — Recycling 2.0

Industrials | Update

Renewi — A circular economy champion

Industrials | Flash note

Renewi — On track – a circular track

Renewi_resized

Sector

Industrials

Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Annemieke den Otter

    CFO

  • Ben Verwaayen

    Chairman

  • Otto de Bont

    CEO

Balance Sheet

Forecast net debt (€m)

412.9

Forecast gearing ratio (%)

113

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.9 (5.9) (2.8)
Relative 3.8 (9.9) (4.9)
52 week high/low 734.0p/450.0p

Financials

Renewi’s Q3 update highlighted further weakness in the Netherlands’ construction sector, a key segment for Commercial Waste Netherlands, with October 2023 showing a 27% annual decrease in the new projects started index. Management announced a programme to generate €15m of cost savings at the interim results, expected to benefit H224 by €5m; nevertheless this has led us to reduce full year expectations. The Belgian arm of Commercial Waste remains more resilient and the rest of the group is performing in line.

Y/E Mar Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 1869.2 261.5 105.3 98.0 7.0 N/A
2023A 1892.3 257.0 103.7 89.0 7.7 N/A
2024E 1843.3 232.2 69.9 60.0 11.4 N/A
2025E 1891.5 248.2 83.1 71.0 9.6 N/A

Research

Renewi_resized

Flash note

Industrials

Renewi — On track – a circular track

Update

Industrials

Renewi — Resilient platform to accelerate growth

Renewi_resized

Flash note

Industrials

Renewi — Trading ‘slightly ahead’ of consensus

Flash note

Industrials

Renewi — Reducing the liabilities

Flash note

Industrials

Renewi — Q323 update supports full-year forecasts

Update

Industrials

Renewi — Standing up to end-market pressures

Flash note

Industrials

Renewi — Trading in line, no change to guidance

Update

Industrials

Renewi — Q1 trading in line, value upside remains

Thematics

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

thematic

Industrials

The long and winding road

thematic

Industrials

Quantum computing: A booming industry

thematic

Industrials

UK housebuilders

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free