Renault RNO.PA
Renault is a French automaker that designs, manufactures, and sells passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands, with a business model focused on volume production and the alliance with Nissan and Mitsubishi. Renault trades at a very attractive valuation (P/E 8.12, FCF yield 40.13%) and a high dividend (8.29%), but its financial health is fragile (ND/EBITDA 8.23) and growth faces regulatory risks in the EU.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Renault is a French automaker that designs, manufactures, and sells passenger cars and light commercial vehicles under the Renault, Dacia, Alpine, and Mobilize brands, with a business model focused on volume production and the alliance with Nissan and Mitsubishi. Renault trades at a very attractive valuation (P/E 8.12, FCF yield 40.13%) and a high dividend (8.29%), but its financial health is fragile (ND/EBITDA 8.23) and growth faces regulatory risks in the EU.
Score by category
| Category | Score |
|---|---|
| Financial health | 1.2 |
| Quality / Moat | 3.1 |
| Valuation | 8.7 |
| Growth | 6.2 |
| Dividend | 8.6 |
| Momentum | 3.7 |
| Risk & Context | 5.0 |
OVERALL SCORE: 5.2/10
Context and risks
Renault has significant exposure to EU emissions regulation and potential limits on hybrid imports, which could affect its sales volume. Additionally, its high debt (ND/EBITDA of 8.23) and dependence on the global supply chain make it vulnerable to geopolitical tensions and tariffs.
News considered in the analysis
- Renault Stock And European Auto Shares Facing An EU Hybrid Import Cap — Un posible límite a la importación de híbridos en la UE podría restringir el mercado de vehículos híbridos, un segmento clave para Renault en Europa.
- European Markets Close Lower in Thursday Trading as Bond Yields, Oil Prices Rise — El aumento de los rendimientos de los bonos y del petróleo presiona a las acciones europeas, incluyendo a Renault, por el aumento de los costes de financiación y de energía.
- UK consumers urged to sign up for share of £56m new car delivery compensation — Una compensación potencial en el Reino Unido por retrasos en la entrega de vehículos podría generar costes adicionales para los fabricantes, incluido Renault.
- Is Geely Automobile Holdings (SEHK:175) Still A Bargain On Earnings? — Noticia sobre un competidor sin información nueva relevante para Renault.
- European stocks rise after Fed hike as oil slips, yields stabilise — La estabilización de los rendimientos y la caída del petróleo podrían aliviar las presiones sobre los márgenes y la valoración de Renault.
Verdict: Hold, with caution. The valuation is tempting, but debt and regulatory risks justify waiting for an improvement in financial health or clarification of the regulatory framework.
Main risk: The high leverage (ND/EBITDA of 8.23) combined with a rising interest rate environment in Europe, which makes debt refinancing more expensive and pressures financial health.
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