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16/10/2020
07:23 | rivaldo: Good to see a new article on Stockopedia assessing RNWH as a "high quality" stock with a good Piotroski score and a "cheap" valuation:
Https://www.stockopedia.com/articles/why-quality-and-value-might-be-key-drivers-of-the-renew-holdings-share-price-133063/
"The Renew Holdings share price has moved by 8.45% over the past three months and it’s currently trading at 482.56. But what's interesting about this share is its potential exposure to the influential profit drivers of high quality and a relatively cheap valuation....
....One of the quality metrics for Renew Holdings is that it passes 6 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.....
.... As a percentage, the higher the Earnings Yield, the better value the share.
A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Renew Holdings is currently 7.01%.
In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mis-pricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound."
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28/9/2020
22:51 | rivaldo: Absolutely sure - it was copied as is and sent to me by a trusted source, dated 25th September 2020 and with the 593p target price. Probably as a Flash Note update it doesn't register on the site as a full update.
To prove it, I've included below the Key Data and contact info which I omitted last time as unnecessary:
"finnCap Company Flash
25 September 2020
Renew (RNWH) : Buy
Support Services
Resilient and reliable
Key data
Share price (p) 446.0
Target price (p) 593.0
Market cap (£m) 350.6
Enterprise value (£m) 356.1
Renew’s trading update at the beginning of September detailed trading since H1 results had been strong and ahead of expectations. We have upgraded our FY 2020 EPS by 8% and improved our net debt assumption from £10.5m to £5.6m (excluding finance leases, the group will be in net cash). Renew’s engineering activities in Rail, Infrastructure and Environmental markets have remained robust, with the majority designated as critical to the COVID-19 response.
We continue to forecast dividend repayments to recommence with a final in FY 2020 (results due 8 December) and reiterate our view that there is no change to the long-term outlook. This is supported by the Government’s commitment to invest £640bn over the next five years, which is looking increasingly essential to restart and support the economy.
Guy Hewett
ghewett@finncap.com
020 7220 0549 "
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28/9/2020
17:29 | sharw: rivaldo - are you sure that was from finnCap? - I have just logged in to their site and a search gives the latest note on RNWH as in 2017!
(27/11/17 target price 586p hmm.)
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25/9/2020
11:56 | rivaldo: Finncap have this morning issued a Flash Buy note on RNWH, headed "Resilient and reliable" (thanks mate).
They have a 593p target price.
They state:
"Renew’s trading update at the beginning of September detailed trading since H1 results had been strong and ahead of expectations. We have upgraded our FY 2020 EPS by 8% and improved our net debt assumption from £10.5m to £5.6m (excluding finance leases, the group will be in net cash). Renew’s engineering activities in Rail, Infrastructure and Environmental markets have remained robust, with the majority designated as critical to the COVID-19 response.
We continue to forecast dividend repayments to recommence with a final in FY 2020 (results due 8 December) and reiterate our view that there is no change to the long-term outlook. This is supported by the Government’s commitment to invest £640bn over the next five years, which is looking increasingly essential to restart and support the economy."
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25/9/2020
07:30 | rivaldo: Nice bounce yesterday. I'm sure value will out here soon - RNWH are simply too low at these levels. Given the "ahead of expectations" update the run up to the results in November should be interesting.
I came across this flood defence contract for AmcoGiffen which will benefit September just before the year end, as part of a £32 million programme of flood defence works across Yorkshire:
Https://www.miragenews.com/sheffield-river-maintenance-works-to-reduce-flood-risk/
"Sheffield river maintenance works to reduce flood risk
The Environment Agency will be starting work in the river channel in Sheffield this month (September) to help reduce the risk of flooding in the city....
...The Environment Agency has employed contractors AmcoGiffen to carry out the work."
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10/9/2020
10:19 | wad collector: Excellent , and not only will that be profitable , it is a flagship project that can only bring in more custom. Providing they continue do a good job and Guy Fawkes does not rejuvenate....
(anyone else remember the Lovell homes sand problem?)
Looking at last yrs results , the specialist building division only made RNWH £0.9M profit (£37.7M whole group) so perhaps not that big a part .
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10/9/2020
08:29 | rivaldo: This news from July hasn't been posted before, but is quite significant imo. It shows that RNWH are a vital component of the huge restoration works needed at Westminster (via Water Lilly and Seymour Civil as main contractors).
It perhaps also explains why RNWH haven't sold off Walter Lilly, as the works at Parliament will be massive over the next few years.
And note that Walter Lilly have now been reappointed to carry out works on another courtyard:
Https://www.walterlilly.co.uk/houses-of-parliament-restoration-project-reaches-finals-in-constructing-excellence-secbe-awards/
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04/9/2020
07:16 | rivaldo: Yep, a terrific update today:
https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Trading-Update/83198908
- trading "materially ahead of current market expectations"
- strong cash generation
- the 30th September will see a net cash position, again ahead of expectations
- the acquisition of Carnell is going very well
- and this was achieved despite the nuclear maintenance activities having largely wound down due to COVID-19, so imagine the effect when these are fully working again!
RNWH's share price should be substantially higher than this imo given (1) its defensive strength, (2) its increasing growth potential in all its divisions over the next few years, and (3) its likely single-digit P/E.
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03/9/2020
11:39 | cfb2: wad collector: I have been pondering the same question myself.
It seems that BlackRock are reducing their position and then there is the suspension of dividend payments; your pensioners never like that one!
However, the dividend money is being used to pay off their debt and some confidence has been shown with insider buying of shares. I'm baffled too.
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12/8/2020
07:28 | rivaldo: Newly tipped on Yahoo - at 435p it's actually trading on a historic P/E of only 10.7, but let's not quibble.....
Https://uk.finance.yahoo.com/news/think-best-cheap-uk-growth-144625386.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAAjUfcrPxehRYiMnmdBx92dGCz-WZLl2aSg5rDjWdzYBmXrtLxOKKj2Sk1OrPMfeW1s7jZb46FVKFu_rxX_drM3B-LmmD4m49LHxRoOOawjg4K9xwSsxNPCa9UWEqx303DwmThD9kt6jlwWirrRtqe-duYqvVEs-YdoG6TRqT5uj&_guc_consent_skip=1597213347
"I think these are some of the best cheap UK growth shares to buy today
James J. McCombie
11 August 2020, 3:46 pm
...I particularly like the look of two. They are Renew Holdings (LSE: RNWH) and HgCapital Trust (LSE: HGT), and I think they are some of the best UK growth shares to buy today.
Best UK growth share?
Renew Holdings provides engineering support services in the regulated UK rail, infrastructure, energy, and environmental markets. It also has a sideline (about 10% of sales) in high-quality residential and science building. Renew’s revenues tend to be stable as they are underpinned by long-term and regulated budgets.
These factors did not stop investors fleeing the stock during the coronavirus market crash; Renew’s share price was down 45% at one point. To shore up the balance sheet in the crisis, the dividend was cut, which also contributed to investors fleeing the stock. The share price has recovered, but even now sits at least 20% below its pre-crash highs. This makes the stock cheap, trading at just 14.66 times trailing 12-month earnings per share.
Renew Holdings has grown its earnings per share by an impressive 47.16% over the last 10 years and has averaged a return on investment (ROI) of 25.17% over the last five years. During the worst of the coronavirus lockdown, 80% of Renew’s activities continued because the work was deemed essential. As the economy picks up the remainder should return. There has also been an acquisition of a specialist road-engineering firm. This gets Renew exposure to road infrastructure along with its existing exposure to the UK government’s £640bn infrastructure package.
I think Renew is one of the best UK growth shares to buy today. There are plenty of reasons to think it will continue its robust earnings growth after the pandemic passes. That growth is available on the cheap today."
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PLUS1
