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1. Company Snapshot

1.a. Company Description

Renewi plc provides waste-to-product services.The company operates through Commercial Waste, Mineralz & Water, and Specialities segments.The Commercial Waste segment engages in the collection and treatment of commercial waste in the Netherlands and Belgium; and processing of wood, aggregates, plastics, paper products, and organic waste.


The Mineralz & Water segment decontaminates, stabilizes, and re-uses contaminated materials to produce secondary products for the construction industry in the Netherlands and Belgium; processes and cleans bottom ash, fly ash, and other soils; and handles contaminated soils, old road surfaces, industrial waters, sludges, chemical waste, incinerator residues, and packed hazardous waste.The Specialities segment engages in processing of plants that focuses on recycling and diverting specific waste streams, as well as operates waste treatment facilities for the United Kingdom city and county councils; and recycling of waste from electrical and electronic products, and glass.It operates in the United Kingdom, the Netherlands, Belgium, France, Portugal, and Hungary.


The company was formerly known as Shanks Group plc and changed its name to Renewi plc in February 2017.Renewi plc was founded in 1880 and is headquartered in Milton Keynes, the United Kingdom.

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1.b. Last Insights on RWI

Renewi plc's recent performance was driven by strong revenue growth, with a 4% increase to €874.5m in the six months ended 30 September 2024, mainly due to pricing in Commercial Waste and strong growth in Specialised Waste. The company also reported significant cash flow improvements and revenue growth, while navigating subdued volumes and restructuring costs. Additionally, Renewi's estimated fair value is UK£5.98 based on 2 Stage Free Cash Flow to Equity, indicating a potential upside for investors. The company's strategic divestments and focus on core operations are expected to drive future growth.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Steel Wire for Pre-stressed Concrete Wire (PCW)

Expected Growth: 4.65%

Renewi plc's Steel Wire for Pre-stressed Concrete Wire (PCW) segment growth of 4.65% is driven by increasing demand for sustainable infrastructure development, government initiatives for green construction, and rising adoption of pre-stressed concrete technology in construction projects, particularly in Europe and Asia.

Steel Wires Strand for Pre-stressed Concrete (PC-Strand) or (PCS)

Expected Growth: 4.65%

Renewi plc's PC-Strand growth driven by increasing demand for sustainable infrastructure, government investments in construction projects, and rising adoption of pre-stressed concrete in building developments, coupled with the company's strategic expansion into emerging markets and cost-effective production processes.

Ordinary Low Carbon Steel Wire

Expected Growth: 4.65%

Renewi plc's Ordinary Low Carbon Steel Wire growth of 4.65% is driven by increasing demand from the construction and automotive industries, coupled with the company's strategic expansion into emerging markets. Additionally, the shift towards sustainable and eco-friendly products, as well as the implementation of cost-saving initiatives, have contributed to the segment's growth.

Hard-drawn Wire

Expected Growth: 4.83%

Renewi plc's Hard-drawn Wire segment growth of 4.83% is driven by increasing demand from the automotive and construction industries, coupled with the company's strategic expansion into emerging markets. Additionally, investments in research and development have led to the introduction of innovative wire products, further boosting sales.

Wire Mesh

Expected Growth: 6.9%

Renewi plc's Wire Mesh segment growth of 6.9% is driven by increasing demand for infrastructure development, urbanization, and construction projects. Additionally, growing adoption of sustainable and eco-friendly materials, coupled with government initiatives promoting recycling and waste reduction, contribute to the segment's growth.

7. Detailed Products

Municipal Waste Management

Renewi plc provides waste management services to municipalities, including waste collection, transportation, and disposal.

Commercial Waste Management

Renewi offers waste management services to commercial businesses, including waste collection, recycling, and disposal.

Hazardous Waste Management

Renewi provides specialized services for the safe handling and disposal of hazardous waste, including chemical waste and contaminated soil.

Recycling Services

Renewi offers recycling services for paper, plastic, glass, and other materials, helping to conserve natural resources and reduce landfill waste.

Energy-from-Waste

Renewi generates renewable energy from waste, reducing greenhouse gas emissions and reliance on fossil fuels.

Waste-to-Product

Renewi converts waste into valuable products, such as compost, biofuels, and recycled materials.

8. Renewi plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Renewi plc operates in the waste management industry, where substitutes are limited. However, the increasing trend of recycling and waste reduction may pose a moderate threat to the company's operations.

Bargaining Power Of Customers

Renewi plc's customers are largely municipalities and industrial clients, who have limited bargaining power due to the specialized nature of waste management services.

Bargaining Power Of Suppliers

Renewi plc relies on a network of suppliers for fuel, equipment, and other inputs. While suppliers have some bargaining power, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The waste management industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Renewi plc.

Intensity Of Rivalry

The waste management industry is highly competitive, with several established players competing for market share. Renewi plc must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.56%
Debt Cost 6.91%
Equity Weight 38.44%
Equity Cost 9.45%
WACC 7.89%
Leverage 160.17%

11. Quality Control: Renewi plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lassila & Tikanoja

A-Score: 6.0/10

Value: 6.1

Growth: 2.7

Quality: 3.3

Yield: 7.5

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Derichebourg

A-Score: 5.3/10

Value: 8.9

Growth: 5.0

Quality: 3.6

Yield: 5.0

Momentum: 5.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Pizzorno Environnement

A-Score: 4.6/10

Value: 5.7

Growth: 6.2

Quality: 3.9

Yield: 4.4

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Befesa

A-Score: 4.4/10

Value: 4.7

Growth: 5.4

Quality: 2.7

Yield: 3.8

Momentum: 6.5

Volatility: 3.3

1-Year Total Return ->

Stock-Card
Séché Environnement

A-Score: 4.4/10

Value: 7.6

Growth: 7.4

Quality: 3.7

Yield: 1.9

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
Renewi

A-Score: 4.0/10

Value: 7.2

Growth: 2.7

Quality: 1.5

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.68$

Current Price

8.68$

Potential

-0.00%

Expected Cash-Flows