- Renault’s FY operating margin was 7.6%, slightly below the estimate of 7.74% and the previous year’s 7.9%.
- Despite missing margin estimates, the operating margin value grew by 3.5% year-over-year to EU4.26 billion, surpassing the estimate of EU3.52 billion.
- The automotive operating margin value declined by 1.8% year-over-year to EU3.00 billion, missing the estimate of EU3.07 billion.
- Sales financing operating margin saw an 18% increase year-over-year, reaching EU1.30 billion, above the estimated EU1.21 billion.
- Revenue for the year increased by 7.4% year-over-year to EU56.23 billion, exceeding the estimate of EU53.99 billion.
- The automotive sector contributed EU50.52 billion in revenue, beating the estimate of EU49.31 billion.
- Renault generated free cash flow of EU2.88 billion, a 4.7% decline from the previous year; however, it surpassed the estimate of EU2.6 billion.
- Operating income rose by 3.7% year-over-year to EU2.58 billion, although it fell short of the estimated EU2.91 billion.
- Net income significantly dropped by 66% year-over-year to EU752 million, missing the estimate of EU1.72 billion.
- Dividends per share were increased to EU2.20, up from EU1.85 last year, though below the estimated EU2.52.
- For the year ahead, Renault forecasts an operating margin of at least 7% and free cash flow of at least EU2 billion.
- The full-year group operating margin target of at least 7% accounts for roughly 1 point of the estimated CAFE negative impact.
- The free cash flow target factors in a €150 million dividend from Mobilize Financial Services, a decrease from €600 million in 2024, to maintain compliance with European Central Bank and credit rating agencies’ solvency ratios.
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A look at Renault SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Renault SA, a company specializing in designing, manufacturing, and marketing passenger cars and light commercial vehicles, has received varying Smart Scores that indicate its long-term outlook. With an impressive Value score of 5 and strong Growth score of 5, Renault SA appears to be well-positioned in terms of its financial health and potential for expansion. Investors may find the company attractive based on these scores, signaling that it offers good value and growth prospects.
However, Renault SA‘s Resilience score of 2 suggests some vulnerability in facing economic challenges, while its Dividend score of 4 and Momentum score of 4 indicate moderate performance in terms of dividends and market momentum. Overall, with a combination of strengths and weaknesses in different areas, investors may want to consider a balanced approach when evaluating Renault SA for long-term investment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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