- Renault’s operating margin for the first half of 2024 was 8.1%, ahead of the estimated 7.92% and up from last year’s 7.6%.
- The company’s operating margin in monetary terms reached €2.18 billion, a 6.6% increase year over year, surpassing the estimated €2.12 billion.
- Renault’s automotive operating margin value was €1.60 billion, a rise of 3.8% compared to last year, exceeding the forecasted €1.57 billion.
- Sales financing operating margin stood at €593 million, a notable 14% jump from last year and above the projected €585.5 million.
- Free cash flow dropped by 29% year over year to €1.26 billion, missing the estimated €1.49 billion.
- Revenue for the first half was €26.96 billion, slightly up by 0.4% from last year, and matching the estimate of €26.9 billion.
- Automotive revenue totaled €24.4 billion, just above the expected €24.33 billion.
- Operating income fell by 9.4% to €1.90 billion, though still surpassing the estimate of €1.55 billion.
- Net income decreased by 38% year over year to €1.29 billion, below expectations of €1.51 billion.
- Renault forecasts an operating margin of at least 7.5%, with estimates suggesting 7.79%.
- The company expects free cash flow of at least €2.5 billion, below the estimated €2.71 billion.
- The first half net income included €1.38 billion, factoring in the capital loss from the disposal of Nissan shares.
A look at Renault SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
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
In assessing the long-term outlook for Renault SA, a leading automobile manufacturer, the Smartkarma Smart Scores reveal a mixed picture. While the company scores high in Value, Growth, and Momentum, indicating strong potential in these areas, its Resilience score lags behind. The high scores in Value suggest that Renault SA is currently undervalued relative to its fundamentals, presenting an opportunity for investors. Additionally, the strong Growth and Momentum scores hint at the company’s positive trajectory and market momentum, boding well for future performance.
However, the lower Resilience score raises some concerns about Renault SA‘s ability to withstand potential economic downturns or disruptions. Investors may need to carefully consider this aspect along with the promising Value, Growth, and Momentum factors. Overall, with its focus on designing, manufacturing, and marketing vehicles along with financing solutions, Renault SA appears poised for growth but may require a closer look at its resilience in the face of 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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