Renault S.A. (RNO.PA) stock analysis

In our weekly check, Renault S.A. is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 9.

About Renault S.A.

Renault S.A. is a Consumer Cyclical company (Auto - Manufacturers) based in France, listed on PAR as RNO.PA.

What our checks show for RNO.PA

Red flags

• Debt is high against equity (3.52x). That limits room in a downturn.
• Operating profit does not cover the interest bill (-42.3x): interest is paid from cash or new debt.
• The net margin fell by 21 points over 5 years, to -18.9%: the company keeps less of each sale as profit.
• Weak EPS growth
• The company is losing money: the net margin is -18.9%.
• Free cash flow is negative (-1.2% of revenue): the business spends more cash than it brings in.
• Renault S.A. pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 45.1% a year.
• Analysts expect only about 3.3% a year of growth in revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.3%.

Strengths

• Operating cash flow is 0.21x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 21.8 points from today's -18.9%.
• The price is 7.9 times earnings (P/E), reasonable for its growth.

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Questions

What grade does Renault S.A. (RNO.PA) have?

In our weekly check, Renault S.A. is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 4, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RNO.PA stock?

This week's biggest flags for Renault S.A.: High debt, Weak interest cover, Margins falling. In total 13 of 24 checks show a warning or a red flag.

What does Renault S.A. do?

Renault S.A. is a Consumer Cyclical company (Auto - Manufacturers) based in France, listed on PAR as RNO.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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