# Renishaw (RSW.LSE)

Canonical: https://gigainvestors.com/s/RSW.LSE

Analysis as of: 2026-10-16T07:37:28.178Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 5,420.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,869.27 per share, central GBX 2,290.97 per share, high GBX 2,613.70 per share. Buy at or below the central value GBX 2,290.97 per share. Valuation as of 2026-10-16T07:37:28.178Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.22×

- FY2018: 0.24×

- FY2019: 0.17×

- FY2020: 0.11×

- FY2021: 0.24×

- FY2022: 0.21×

- FY2023: 0.20×

- FY2024: 0.16×

- FY2025: 0.15×

- FY2026: 0.16×

### moat: pass

- ROIC, median of available years: 16.6%

- ROIC, second-lowest year: 11.6%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 60.1%

- Recent gross margin (lower of latest and 3-year median): 59.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.2%

- ROIC including acquisitions, ten-year median: 15.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 27.5%

- FY2018: 29.2%

- FY2019: 17.3%

- FY2020: 10.5%

- FY2021: 22.2%

- FY2022: 20.9%

- FY2023: 15.5%

- FY2024: 12.4%

- FY2025: 11.6%

- FY2026: 15.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 434M

- Net income, five-year total: GBP 536M

- Return on incremental invested capital: 13.7%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: -0.5 pp

- Working capital / revenue, final three-year average: 43.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.98×

- FY2023: 0.57×

- FY2024: 0.55×

- FY2025: 0.92×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 27.5% vs 12.4%

- Per-share earnings: 1.22 to 1.33 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: GBP 1.1B

- Cumulative retained earnings: GBP 519M

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 1.1%

- Per-share value change: GBP 0.11

- Per-share value, starting three-year median: GBP 1.22

- Per-share value, ending three-year median: GBP 1.33

- Buybacks concentrated in cheaper years (correlation): 0.54

- Average buyback yield: 0.0%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 81M

- Cumulative net income, 10 years: GBP 962M

- ROIC, first three-year median: 27.5%

- ROIC, last three-year median: 12.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 1.22

- FY2018: GBP 1.83

- FY2019: GBP 1.27

- FY2020: GBP 0.00

- FY2021: GBP 1.53

- FY2022: GBP 1.66

- FY2023: GBP 1.60

- FY2024: GBP 1.33

- FY2025: GBP 1.15

- FY2026: GBP 1.63

### accounting: pass

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 1.46×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.02×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.2%

- FY2018: 0.1%

- FY2019: -1.8%

- FY2020: -13.6%

- FY2021: -2.8%

- FY2022: -0.1%

- FY2023: 3.0%

- FY2024: -2.6%

- FY2025: -5.6%

- FY2026: -0.2%

## Holders

## Price story

Price needs cash profits to grow 16.1% a year for ten years · "Renishaw Rides the AI Chip Boom to Record Results" (finance.yahoo.com, Sep 2026) · sales +14.4%

Story as of 2026-10-16T10:00:09.076Z; price observation 2026-10-15.

Price needs cash profits to grow 16.1% a year for ten years

- 2026-09-23: Renishaw Rides the AI Chip Boom to Record Results ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/renishaw-rides-ai-chip-boom-161849385.html))

### Sales · FY2025–2026

sales +14.4%; source https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml; observed 2026-10-15.

- FY2017: GBP 537M 

- FY2018: GBP 612M 

- FY2019: GBP 574M 

- FY2020: GBP 509M 

- FY2021: GBP 567M 

- FY2022: GBP 674M 

- FY2023: GBP 689M 

- FY2024: GBP 691M 

- FY2025: GBP 713M 

- FY2026: GBP 816M 

### Gross margin · FY2026

gross margin 59.3%; source https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml; observed 2026-10-15.

- FY2017: 53.2% 

- FY2018: 53.4% 

- FY2019: 49.5% 

- FY2020: 63.8% 

- FY2021: 65.1% 

- FY2022: 65.1% 

- FY2023: 63.0% 

- FY2024: 61.0% 

- FY2025: 46.4% 

- FY2026: 59.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are GBP 815.8 million.

- Source: https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml (filed 2026-10-15); FY2026: revenue 815779000; grossProfit 483664000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RSW.LSE: Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services technological products and services, and analytical instruments and medical devices worldwide. The company operates through three segments: Industrial Metrology, Position Measurement, and Specialised Technologies. It offers precision measurement and process control products, such as co-ordinate measuring machine probes, software, retrofits, equator gauging systems, fixtures, machine calibration and optimization, machine tool probes, precision styli for metrology, and smart manufacturing data platform; and position and motion control products comprising interferometric laser, magnetic, and optical encoders. The company also provides healthcare products, such as neuromate stereotactic robots, neuroinfuse drug delivery systems, neuroinspire surgical planning software, dixi medical's, and Raman spectrometers; industrial robots; and metal additive 3D printing manufacturing systems. It serves the aerospace, automotive, consumer electronics, medical and healthcare, heavy, machine builder, energy, and precision manufacturing industries, as well as scientific, research, and analysis industries. The company was incorporated in 1973 and is based in Wotton-under-Edge, the United Kingdom.

### Why customers stay

Margins ranged from 46.4% to 61% during 2024–26; it earns 16.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2024: grossProfit / revenue = 61%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2025: grossProfit / revenue = 46.4%.

- Source: https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml (filed 2026-10-15); FY2026: grossProfit / revenue = 59.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); 10-year return on capital observations [[2017,0.27490582800773794],[2018,0.2922246811514555],[2019,0.17269068838646154],[2020,0.10545075004770704],[2021,0.221870418676974],[2022,0.20870732161827885],[2023,0.15533437152301777],[2024,0.12395007401277619],[2025,0.11645217746088968],[2026,0.15834276915040757]]; median 0.16551672876843454. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 4.2% of cash earnings on expansion; earns 13.7% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2017: growth capex 5500000; upkeep 37137000; owner earnings 88955000. Growth capex / owner earnings = 0.06182901467033894.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2018: growth capex 0; upkeep 34852000; owner earnings 138837000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2019: growth capex 0; upkeep 56792000; owner earnings 74699000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2021: growth capex 0; upkeep 23717000; owner earnings 124233600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2022: growth capex 3634000; upkeep 36026000; owner earnings 118315000. Growth capex / owner earnings = 0.03071461775768077.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2023: growth capex 6766296.647585139; upkeep 78084703.35241486; owner earnings 66317696.64758514. Growth capex / owner earnings = 0.10202852314882868.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2024: growth capex 1258534.0495603979; upkeep 73515465.9504396; owner earnings 53197134.0495604. Growth capex / owner earnings = 0.023657929549135138.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); FY2025: growth capex 9755399.146545023; upkeep 36517600.85345498; owner earnings 77433199.14654502. Growth capex / owner earnings = 0.12598471009937987.

- Source: https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml (filed 2026-10-15); FY2026: growth capex 5024001; upkeep 33317999; owner earnings 118960000. Growth capex / owner earnings = 0.04223269166106254.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); Incremental return on capital 0.13723932967034158, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); Dividend observations: [[2017,34939000],[2018,38942000],[2019,43672000],[2020,33478000],[2021,10189000],[2022,49494000],[2023,53407000],[2024,55412000],[2025,55424000],[2026,56842000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml (filed 2026-10-15); FY2026: cash repurchases 979000 GBP.

### Are managers owners

Insiders own 51.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RSW.LSE SharesStats.PercentInsiders = 51.568000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.1% yearly over ten years; actual growth was 20.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); Ten-year compound average after fade. Initial solved rate 0.22085749822357037. Price 5420; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.24898163858301792 → FY2026 1.634964266080264. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 2,583.00 per share

- 2016-11: GBX 2,480.00 per share

- 2016-12: GBX 2,528.00 per share

- 2017-01: GBX 2,850.00 per share

- 2017-02: GBX 3,072.00 per share

- 2017-03: GBX 3,113.00 per share

- 2017-04: GBX 3,415.00 per share

- 2017-05: GBX 3,702.00 per share

- 2017-06: GBX 3,620.00 per share

- 2017-07: GBX 4,170.00 per share

- 2017-08: GBX 4,580.00 per share

- 2017-09: GBX 4,763.00 per share

- 2017-10: GBX 4,955.00 per share

- 2017-11: GBX 5,315.00 per share

- 2017-12: GBX 5,225.00 per share

- 2018-01: GBX 4,968.00 per share

- 2018-02: GBX 4,834.00 per share

- 2018-03: GBX 4,506.00 per share

- 2018-04: GBX 4,716.00 per share

- 2018-05: GBX 5,370.00 per share

- 2018-06: GBX 5,300.00 per share

- 2018-07: GBX 5,470.00 per share

- 2018-08: GBX 5,460.00 per share

- 2018-09: GBX 4,744.00 per share

- 2018-10: GBX 4,214.00 per share

- 2018-11: GBX 4,280.00 per share

- 2018-12: GBX 4,240.00 per share

- 2019-01: GBX 4,670.00 per share

- 2019-02: GBX 4,240.00 per share

- 2019-03: GBX 3,706.00 per share

- 2019-04: GBX 4,512.00 per share

- 2019-05: GBX 3,910.00 per share

- 2019-06: GBX 4,258.00 per share

- 2019-07: GBX 3,854.00 per share

- 2019-08: GBX 3,550.00 per share

- 2019-09: GBX 3,664.00 per share

- 2019-10: GBX 3,788.00 per share

- 2019-11: GBX 3,962.00 per share

- 2019-12: GBX 3,768.00 per share

- 2020-01: GBX 3,976.00 per share

- 2020-02: GBX 3,494.00 per share

- 2020-03: GBX 3,164.00 per share

- 2020-04: GBX 3,524.00 per share

- 2020-05: GBX 3,850.00 per share

- 2020-06: GBX 4,024.00 per share

- 2020-07: GBX 4,836.00 per share

- 2020-08: GBX 4,784.00 per share

- 2020-09: GBX 5,620.00 per share

- 2020-10: GBX 5,595.00 per share

- 2020-11: GBX 5,600.00 per share

- 2020-12: GBX 5,760.00 per share

- 2021-01: GBX 6,000.00 per share

- 2021-02: GBX 5,750.00 per share

- 2021-03: GBX 6,410.00 per share

- 2021-04: GBX 6,265.00 per share

- 2021-05: GBX 5,535.00 per share

- 2021-06: GBX 4,926.00 per share

- 2021-07: GBX 5,110.00 per share

- 2021-08: GBX 5,400.00 per share

- 2021-09: GBX 4,748.00 per share

- 2021-10: GBX 5,025.00 per share

- 2021-11: GBX 4,540.00 per share

- 2021-12: GBX 4,780.00 per share

- 2022-01: GBX 4,536.00 per share

- 2022-02: GBX 4,698.00 per share

- 2022-03: GBX 3,870.00 per share

- 2022-04: GBX 4,254.00 per share

- 2022-05: GBX 4,064.00 per share

- 2022-06: GBX 3,568.00 per share

- 2022-07: GBX 4,338.00 per share

- 2022-08: GBX 3,696.00 per share

- 2022-09: GBX 3,516.00 per share

- 2022-10: GBX 3,502.00 per share

- 2022-11: GBX 3,692.00 per share

- 2022-12: GBX 3,668.00 per share

- 2023-01: GBX 3,944.00 per share

- 2023-02: GBX 3,994.00 per share

- 2023-03: GBX 4,094.00 per share

- 2023-04: GBX 3,604.00 per share

- 2023-05: GBX 4,046.00 per share

- 2023-06: GBX 3,902.00 per share

- 2023-07: GBX 3,900.00 per share

- 2023-08: GBX 3,638.00 per share

- 2023-09: GBX 3,522.00 per share

- 2023-10: GBX 3,084.00 per share

- 2023-11: GBX 3,136.00 per share

- 2023-12: GBX 3,578.00 per share

- 2024-01: GBX 3,504.00 per share

- 2024-02: GBX 4,308.00 per share

- 2024-03: GBX 4,250.00 per share

- 2024-04: GBX 4,150.00 per share

- 2024-05: GBX 4,000.00 per share

- 2024-06: GBX 3,700.00 per share

- 2024-07: GBX 3,795.00 per share

- 2024-08: GBX 3,545.00 per share

- 2024-09: GBX 3,745.00 per share

- 2024-10: GBX 3,150.00 per share

- 2024-11: GBX 3,130.00 per share

- 2024-12: GBX 3,385.00 per share

- 2025-01: GBX 3,605.00 per share

- 2025-02: GBX 2,890.00 per share

- 2025-03: GBX 2,550.00 per share

- 2025-04: GBX 2,240.00 per share

- 2025-05: GBX 2,570.00 per share

- 2025-06: GBX 2,860.00 per share

- 2025-07: GBX 2,975.00 per share

- 2025-08: GBX 3,230.00 per share

- 2025-09: GBX 3,575.00 per share

- 2025-10: GBX 3,535.00 per share

- 2025-11: GBX 3,470.00 per share

- 2025-12: GBX 3,510.00 per share

- 2026-01: GBX 3,800.00 per share

- 2026-02: GBX 4,300.00 per share

- 2026-03: GBX 3,530.00 per share

- 2026-04: GBX 4,734.00 per share

- 2026-05: GBX 5,300.00 per share

- 2026-06: GBX 5,120.00 per share

- 2026-07: GBX 4,948.00 per share

- 2026-08: GBX 5,105.00 per share

- 2026-09: GBX 5,785.00 per share

- 2026-10: GBX 5,420.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 1,718.06 per share, central GBX 2,430.03 per share, high GBX 2,844.62 per share

- FY2018: low GBX 2,150.05 per share, central GBX 3,017.45 per share, high GBX 3,522.54 per share

- FY2019: low GBX 1,907.68 per share, central GBX 2,669.03 per share, high GBX 3,112.36 per share

- FY2020: low GBX 1,161.77 per share, central GBX 1,299.08 per share, high GBX 1,481.86 per share

- FY2021: low GBX 1,692.15 per share, central GBX 1,886.87 per share, high GBX 2,146.09 per share

- FY2022: low GBX 2,407.85 per share, central GBX 3,113.41 per share, high GBX 3,589.84 per share

- FY2023: low GBX 1,676.71 per share, central GBX 1,952.92 per share, high GBX 2,230.49 per share

- FY2024: low GBX 1,281.12 per share, central GBX 1,419.09 per share, high GBX 1,602.75 per share

- FY2025: low GBX 1,519.79 per share, central GBX 1,680.18 per share, high GBX 1,893.69 per share

- FY2026: low GBX 1,869.20 per share, central GBX 2,290.89 per share, high GBX 2,613.61 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/21380048ADXM6Z67CT18/2026-06-30/ESEF/GB/0/21380048ADXM6Z67CT18-2026-06-30/reports/21380048ADXM6Z67CT18-2026-06-30-T01.xhtml); period 2026-06-30, filed 2026-10-15.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.