ReNew Energy Global plc (NASDAQ: RNW)

Sector: Utilities Industry: Utilities - Renewable CIK: 0001848763
Market Cap 1.93 Bn
P/B 1.41
P/E 14.53
P/S 1.21
ROIC (Qtr) 282.72
Div Yield % 0.00
Rev 1y % (Qtr) 40.88
Total Debt (Qtr) 9.22 Bn
Debt/Equity (Qtr) 6.71
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About

ReNew Energy Global plc, known by its stock symbol RNW, is a prominent player in the renewable energy industry. As a decarbonization solutions company, it specializes in providing large-scale renewable energy solutions, with a significant focus on the Indian market. As of May 31, 2024, ReNew Energy Global boasts an impressive clean energy portfolio with a total capacity of approximately 15.64 GW. The company's primary business activities revolve around the development, operation, and maintenance of renewable energy projects, specifically in wind,...

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Investment thesis

Bull case

  • Operating cash flow of 915.98M provides exceptional 105.98x coverage of minority interest expenses 8.64M, showing strong core operations.
  • Operating cash flow of 915.98M provides strong 81.13x coverage of stock compensation 11.29M, indicating sustainable incentive practices.
  • Strong operating cash flow of 915.98M provides 14.84x coverage of SG&A expenses 61.71M, showing efficient operational cost management.
  • Short-term investments of 916.31M provide solid 7.27x coverage of other current liabilities 126.01M, indicating strong liquidity.
  • Operating cash flow of 915.98M fully covers other non-current liabilities 424.15M by 2.16x, showing strong long-term stability.

Bear case

  • Operating cash flow of 915.98M barely covers its investment activities of (720.81M), with a coverage ratio of -1.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (20.92M) provides weak coverage of capital expenditures of 936.91M, with a -0.02 ratio suggesting additional external financing needs for growth initiatives.
  • Tangible assets of 11.12B provide limited backing for working capital of (1.36B), which is -8.15x, suggesting increased operational risk in market downturns.
  • Short-term investments of 916.31M exceed receivables of 257.16M by 3.56x, indicating potentially inefficient capital allocation given collection cycle needs.
  • Cash position of 494.94M provides only 0.74x coverage of interest expenses of 672.24M, indicating potential refinancing risks in a rising rate environment.

Segment consolidation items [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Utilities - Renewable
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CEG Constellation Energy Corp 98.92 Bn 153.61 4.71 9.04 Bn
2 ENLT Enlight Renewable Energy Ltd. 9.32 Bn 66.03 14.79 5.54 Bn
3 BEP Brookfield Renewable Partners L.P. 9.20 Bn -37.24 1.46 39.66 Bn
4 ORA Ormat Technologies, Inc. 5.64 Bn 146.14 14.39 2.75 Bn
5 CWEN Clearway Energy, Inc. 4.62 Bn 184.82 3.85 9.22 Bn
6 FLNC Fluence Energy, Inc. 2.37 Bn -45.59 0.93 0.39 Bn
7 RNW ReNew Energy Global plc 1.93 Bn 14.53 1.21 9.22 Bn
8 XIFR XPLR Infrastructure, LP 1.00 Bn -35.67 0.84 6.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.82
EV to Cash from Ops. EV/CFO 0.00 3.77
EV to Debt EV to Debt 0.00 -7.57
EV to EBIT EV/EBIT 0.00 18.11
EV to EBITDA EV/EBITDA 0.00 5.59
EV to Free Cash Flow [EV/FCF] EV/FCF -0.09 -9.43
EV to Market Cap EV to Market Cap 0.00 -1.15
EV to Revenue EV/Rev 0.00 -22.88
Price to Book Value [P/B] P/B 1.41 2.64
Price to Earnings [P/E] P/E 14.53 1.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.71
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -0.74
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 12.62
Interest Coverage Int. cover (Qtr) 1.25 -4.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 27.58 -691.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 97.17 37.74
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.15
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 526.69 -300.29
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.23 -47.88
EBIT Growth (1y) % EBIT 1y % (Qtr) 24.46 -76.46
EBT Growth (1y) % EBT 1y % (Qtr) 71.41 -85.90
EPS Growth (1y) % EPS 1y % (Qtr) 707.02 398.06
FCF Growth (1y) % FCF 1y % (Qtr) 95.97 1,637.76
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 22.70 93.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.35
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.16 1.83
Current Ratio Curr Ratio (Qtr) 0.57 2.29
Debt to Equity Ratio Debt/Equity (Qtr) 6.71 0.89
Interest Cover Ratio Int Coverage (Qtr) 1.25 -4.73
Times Interest Earned Times Interest Earned (Qtr) 1.25 -4.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 69.10 -241.05
EBIT Margin % EBIT Margin % (Qtr) 4,703.75 -107.41
EBT Margin % EBT Margin % (Qtr) 10.43 -407.45
Gross Margin % Gross Margin % (Qtr) 85.60 9.67
Net Profit Margin % Net Margin % (Qtr) 8.30 -408.25