Renewi - A potential to double in 4 years
Renewi has been trading at a discount to peers for years and for good reasonsHowever, thanks to the sale of the UK Municipal business and the recovery of ATM, Renewi should be entering a phase of increased profitability (FY28e EBIT margin 8.3% vs. FY23: 6.4%) leading to an improved ROIC profile (FY28e ROIC 11% vs. FY19-FY23 average of 2.4%).Instead of potentially dilutive M&A, we prefer Renewi to focus on improving profitability and productivity of its core business, to use FCF to delever and derisk, and to use it to remunerate shareholders.Combining a substantial increase in EBIT by FY28e (up >45% DPe)Renewi is a recycling companies. Co. operates in four divisions: commercial, which is engaged in sorting and recycling for, amongst others things, paper, cardboard, wood, plastics, metals and Construction and Demolition waste; hazardous, which is engaged in treating contaminated soil and water, as well as for the disposal of a range of hazardous waste such as waste paints and solvents; municipal, which operates waste treatment facilities for U.K. and Canadian city and county councils under long-term contracts; and monostreams, which produce materials from waste streams in specific end markets such as glass, electrical and electronic equipment, organics and minerals.
We are an investment house with Belgian roots founded on more than 150 years of trust.
As a private company owned by long-term committed shareholders, we are independent. Naturally and structurally. Our experts have the knowledge to think and act without bias, and to make decisions that benefit our clients. Today and tomorrow.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.