- Renault maintains its forecast for the full-year operating margin to be at least 7%, with estimates at 7.26%.
- The company also projects a minimum free cash flow of 2 billion euros, with estimates around 2.09 billion euros.
- First-quarter revenue slightly decreased by 0.3% year-over-year to 11.68 billion euros, falling short of the estimated 11.76 billion euros.
- Automotive revenue saw a decline of 3% year-over-year to 10.13 billion euros, below the expected 10.39 billion euros.
- Sales financing revenue increased by 22% year-over-year to 1.52 billion euros, surpassing the estimate of 1.35 billion euros.
- Global vehicle sales rose by 2.9% year-over-year, achieving a total of 564,980 units sold.
- The full-year group operating margin forecast takes into account an estimated negative impact of about 1 point from CAFE.
- In response to an unstable macroeconomic environment, Renault Group has decided to implement additional cost-reduction measures proactively.
A look at Renault SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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 known for designing, manufacturing, and marketing passenger cars and light commercial vehicles, presents a promising long-term outlook according to Smartkarma Smart Scores. With an exceptional Value score of 5, Renault SA is deemed to be highly attractive from an investment perspective. Additionally, the above-average Dividend score of 4 indicates the company’s commitment to rewarding shareholders. However, the Growth score of 3 suggests moderate potential for future expansion, while the Resilience score of 2 flags some vulnerability to economic fluctuations. On the bright side, Renault SA demonstrates a decent Momentum score of 3, hinting at positive trends and market sentiment.
In summary, based on the provided Smartkarma Smart Scores, Renault SA emerges as a company with strong value and dividend prospects, albeit with room for growth and resilience improvement. The company’s diversified operations in passenger cars, light commercial vehicles, and financial services position it as a key player in the automotive industry. Investors considering Renault SA may find its solid value proposition and dividend performance appealing, while keeping an eye on opportunities for growth and enhancing resilience in the face of market challenges.
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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