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Renewi on a green wave

Rapidly expanding recycling industry outweighs balance sheet risks
December 16, 2021
  • Troubled history outweighed by growth opportunity
  • Dividends to restart
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Major player in advanced recycling markets

Existing scale and sizeable market share

Growth programme set to increase margins

Bear points

High debt

Very high goodwill valuation

The green recycling logo is now a fashion symbol – teenagers have flocked to buy pricey t-shirts and beanies made by cult London label Palace with the green arrow triangle that turned 50 last year. Investors would probably have made a better return on Palace t-shirts in recent years than by backing Benelux recycling giant Renewi (RWI). That’s despite the importance of the ‘circular economy’, where recycling cuts demand for ‘virgin’ materials and therefore waste and emissions. 

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