Renault SA
🇫🇷 RNO.PA · Paris · FR0000131906
Consumer
EUR 30.10 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-12-31
Why N/A?
EPS (TTM) = -40.00 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 9.3
Based on analyst estimates
Reference: Provider P/E (Forward): 9.3
Yield (Fwd)
7.31%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 7.32%
Net Debt/EBITDA (TTM)
14.2x
Latest quarter: 14.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 14.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (TTM)
68.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Cash Flow Payout (TTM): 27.1%
FCF Coverage (TTM): -1.11x
ROE
-40.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
11.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
While Renault offers a tempting deep-value opportunity stemming from a €9.3 billion non-cash accounting adjustment, the automotive sector's inherent cyclicality makes it unsuitable for conservative dividend strategies. The deeply discounted valuation (P/B 0.40) and strong reported automotive net cash present an interesting setup for risk-tolerant investors, but historical volatility, negative free cash flow, and a proposed dividend cut warrant a highly cautious approach. Not recommended for new dividend-focused positions seeking reliable long-term income.
Sector Context
Renault is a major global automotive manufacturer that designs, produces, and sells passenger and commercial vehicles. For dividend investors, the automotive sector represents a structural mismatch due to its extreme cyclicality, immense capital expenditure requirements for the electric vehicle transition, and high sensitivity to macroeconomic headwinds like inflation and fuel prices.
Temporary Opportunity Identified
A massive €9.3 billion non-cash accounting charge related to the Nissan investment has artificially distorted trailing earnings, masking underlying operating profitability and creating a significant valuation disconnect.
📊 Strategy Analysis
- • Trading at a deeply distressed valuation (P/B 0.40, Forward P/E 9.35) primarily driven by a massive €9.3 billion non-cash accounting adjustment rather than a core operating failure.
- • The company reported a strong automotive net cash financial position of €7.1 billion at the end of 2024, providing a substantial balance sheet buffer.
- • Offers a high 7.3% yield that, despite a small proposed 5.3% strategic trim, is supported by strong underlying 2024 operating profits when excluding the Nissan-related accounting impacts.
⚠ What to Watch
- • The automotive manufacturing sector represents a structural strategy mismatch: it is highly cyclical, capital-intensive, and lacks the predictable, essential-service cash flows required for long-term dividend stability.
- • Trailing free cash flow is negative (-€435 million) and the company has a concerning history of volatile earnings with multiple deep loss years (2019, 2020, 2022, 2025).
- • Current macroeconomic headwinds, particularly crude oil prices surging above $100 per barrel and rising inflation, threaten to severely pressure global consumer vehicle demand.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.