Renault SA

Renault SA presents a capital structure characterized by high leverage and negative net cash. The company holds total assets of €121.0 billion against total liabilities of €100.2 billion, resulting in total equity of €20.8 billion. Long-term debt stands at €69.9 billion, significantly exceeding cash and equivalents of €9.1 billion, leading to a debt-to-equity ratio of 3.36. Liquidity is assessed as medium risk, supported by a current ratio of 1.03, which indicates minimal buffer for short-term obligations. The market capitalization is €7.3 billion, trading at a price-to-book ratio of 0.35, suggesting the market values the equity at a steep discount to its book value.

Profitability metrics are deeply negative, reflecting significant operational challenges. The company reported revenue of €57.9 billion but incurred an operating loss of €7.9 billion and a net loss of €10.9 billion. Gross profit was €11.0 billion, indicating that while gross margins exist, operating expenses and other costs severely erode profitability. Return on equity is -52.6%, and return on assets is -9.0%, highlighting inefficient capital deployment and substantial value destruction in the latest period. The enterprise value to revenue ratio is 1.18, while EV/EBITDA is negative, rendering traditional multiple-based valuation comparisons difficult due to the lack of positive earnings.

Segment and geographic revenue mix data is not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The analysis must rely on aggregate financial figures, which show a large revenue base but poor conversion to net income. Without segment breakdowns, it is unclear which specific business lines or geographies are driving the operational losses or contributing to the gross profit margin.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a static view of the company's performance without year-over-year or quarter-over-quarter trends. Consequently, the direction of revenue growth or margin expansion cannot be determined from the provided data. The lack of historical context prevents an assessment of whether the current losses are a temporary anomaly or part of a longer-term structural decline.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, emphasizing the reliance on debt financing and the potential vulnerability to interest rate fluctuations or refinancing risks. The low dilution risk suggests that the share count, currently at 289.8 million basic and diluted shares, is stable with no immediate threat of significant equity issuance. However, the high debt load and negative operating income pose significant credit and solvency risks if cash flows do not improve.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is €37.54, with a median of €34.50, indicating that analysts expect a significant upside from the current market price of €25.29. The mean recommendation is 2.47, leaning towards a buy, with 3 strong buys and 6 buys against 8 holds. This suggests that while the current financial performance is poor, the market anticipates a turnaround or undervaluation relative to future potential. No specific filing, news, or transcript observations are provided to detail the drivers of this sentiment.

Revenue grew at an 8.6% CAGR over four years, reaching EUR 57.9 billion in fiscal year 2026.

Gross profit expanded to EUR 11.7 billion in fiscal year 2025, indicating strong top-line generation capabilities.

Operating income remained positive at EUR 2.1 billion in fiscal year 2025 before deteriorating in the subsequent period.

The debt-to-equity ratio stands at 3.36, significantly higher than the cohort median of 0.38, indicating high leverage.

Revenue €11.43B, +6,8% YoY.

• ▍Revenue €11.43B, +6,8% YoY

Revenue €11.68B.

• ▍Revenue €11.68B

Revenue €57.92B, +3,0% YoY; Operating income −475,8% YoY.

• ▍Revenue €57.92B, +3,0% YoY
• ▍Operating income −475,8% YoY
• ▍Net income −1 553,6% YoY
• ▍Free cash flow −1 922,1% YoY
• ▍Net margin -18.9%

Revenue €56.23B, +7,4% YoY; Operating income +4,9% YoY.

• ▍Revenue €56.23B, +7,4% YoY
• ▍Operating income +4,9% YoY
• ▍Net income −65,8% YoY
• ▍Free cash flow −76,3% YoY
• ▍Net margin 1.3%

Revenue €52.38B, +13,1% YoY; Operating income +6,1% YoY.

• ▍Revenue €52.38B, +13,1% YoY
• ▍Operating income +6,1% YoY
• ▍Net income +720,9% YoY
• ▍Free cash flow −3,6% YoY
• ▍Net margin 4.2%

Revenue €46.33B, +11,2% YoY; Operating income +128,5% YoY.

• ▍Revenue €46.33B, +11,2% YoY
• ▍Operating income +128,5% YoY
• ▍Net income −139,9% YoY
• ▍Free cash flow +15,1% YoY
• ▍Net margin -0.8%

Revenue €41.66B; Operating income €831.0M.

• ▍Revenue €41.66B
• ▍Operating income €831.0M
• ▍Net margin 2.1%