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Reliance Worldwide Corp. Ltd. (AU:RWC)
ASX:RWC

Reliance Worldwide Corp. (RWC) AI Stock Analysis

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AU

Reliance Worldwide Corp.

(Sydney:RWC)

Rating:71Outperform
Price Target:
AU$5.00
▲(15.47%Upside)
Reliance Worldwide Corp. Ltd. shows strong financial performance, particularly in cash flow generation, contributing positively to the score. Technical analysis reveals mixed signals, with short-term bullish signs but longer-term bearish trends. The valuation is fair, offering room for growth. Overall, the stock presents a stable investment with moderate upside potential.

Reliance Worldwide Corp. (RWC) vs. iShares MSCI Australia ETF (EWA)

Reliance Worldwide Corp. Business Overview & Revenue Model

Company DescriptionReliance Worldwide Corporation Limited, together with its subsidiaries, engages in the design, manufacture, and supply of water flow, control, and monitoring products and solutions for plumbing and heating industries. It offers push-to-connect plumbing fittings for the installation and repair of water reticulation systems; crimp fittings, expansion fittings, and accessories; coiled and straight length tubing; polybutylene pipe for domestic water and central heating systems; LLDPE tubing for fluid control applications; and rigid nylon and aluminum piping for air and pneumatic systems. The company also provides temperature and pressure relief, pressure regulation, and thermostatic mixing valves; push-to-connect technologies for drink dispense, pure water, air and pneumatics, blown fiber, automotive, and OEM solutions; and plumbing and mechanical solutions that support the delivery of water and firestop solutions. In addition, it offers other products, such as backflow preventers, expansion vessels, underfloor heating components and kit systems, water meters, and water mains connection fittings, repair sleeves, as well as appliance, and water and gas connectors. The company provides its products under the SharkBite, JG Speedfit, HoldRite, CashAcme, Reliance Valves, MultiSafe, and John Guest brands. It operates in Australia, New Zealand, Korea, China, the United States, Canada, the United Kingdom, Spain, Italy, Germany, France, the Czech Republic, and Poland. Reliance Worldwide Corporation Limited was founded in 1949 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyReliance Worldwide Corp. Ltd. generates revenue primarily through the sale of its wide range of plumbing and water control products. The company's key revenue streams include sales of its SharkBite fittings, which offer a convenient and reliable solution for plumbing connections without the need for soldering or specialized tools. Additionally, RWC earns money from its other product lines, including PEX pipe systems, valves, and water control products. The company's global distribution network and strategic partnerships with wholesalers, retailers, and professional plumbing service providers further enhance its market reach and sales capabilities. RWC's focus on innovation and quality ensures a steady demand for its products, contributing significantly to its earnings.

Reliance Worldwide Corp. Financial Statement Overview

Summary
Reliance Worldwide Corp. Ltd. demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have slightly diminished, the company maintains a stable balance sheet with manageable debt levels. Overall, the financial statements indicate a stable company with good cash management, though attention to profitability is needed.
Income Statement
78
Positive
The company shows steady revenue growth with a 5.5% increase from 2022 to 2023. Gross profit margin is strong at approximately 39%, indicating efficient cost management. However, a decline in EBIT margin from 17.8% to 15.1% suggests rising operational costs or pricing pressures. The net profit margin also saw a decrease from 11.2% to 9.0%, which is a concern.
Balance Sheet
72
Positive
The company's debt-to-equity ratio remains stable, with a slight increase to 0.44, indicating manageable leverage. Return on equity decreased slightly to 8.9%, reflecting lower profitability. The equity ratio is robust at nearly 59%, indicating strong asset financing through equity.
Cash Flow
82
Very Positive
Operating cash flow increased to $252.8 million, demonstrating strong cash generation. Free cash flow grew by 1.5% year-over-year, reflecting effective capital expenditure management. The operating cash flow to net income ratio stands at 2.26, indicating excellent conversion of income to cash. The free cash flow to net income ratio is robust at 1.88.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.51B1.25B1.24B1.17B1.01B798.72M
Gross Profit
983.04M488.76M478.21M460.56M443.56M327.94M
EBIT
413.72M137.48M221.32M208.41M217.61M117.56M
EBITDA
506.24M244.11M272.70M357.01M340.83M160.18M
Net Income Common Stockholders
255.65M112.07M139.65M137.44M141.44M61.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
49.19M19.91M16.62M27.68M21.36M56.46M
Total Assets
1.47B2.14B2.06B2.09B1.68B1.52B
Total Debt
352.09M560.81M557.02M695.45M178.17M338.93M
Net Debt
302.90M540.89M540.40M667.77M156.81M282.47M
Total Liabilities
475.62M880.13M827.23M955.39M482.96M545.60M
Stockholders Equity
998.65M1.26B1.23B1.13B1.20B975.36M
Cash FlowFree Cash Flow
504.65M210.79M207.75M124.19M170.12M135.65M
Operating Cash Flow
586.99M252.83M250.26M184.65M206.61M165.49M
Investing Cash Flow
-91.14M-140.16M-14.50M-412.97M
Financing Cash Flow
-518.50M-131.49M-246.55M332.41M

Reliance Worldwide Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.33
Price Trends
50DMA
4.28
Positive
100DMA
4.65
Negative
200DMA
5.02
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.26
Neutral
STOCH
17.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Negative. The current price of 4.33 is below the 20-day moving average (MA) of 4.48, above the 50-day MA of 4.28, and below the 200-day MA of 5.02, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 17.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RWC.

Reliance Worldwide Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AURWC
71
Outperform
$3.29B17.5610.01%1.61%8.95%3.33%
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
DE8MP
€979.63M20.7515.97%4.11%
DE0BS
€998.70M-16.06%2.92%
AUDBI
78
Outperform
AU$2.01B24.557.48%5.39%19.38%10.66%
AUMGH
74
Outperform
AU$1.54B19.879.50%1.64%-1.30%-7.78%
AUEMB
66
Neutral
AU$17.97M13.186.82%4.20%-20.98%18.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RWC
Reliance Worldwide Corp.
4.33
-0.38
-8.01%
DE:8MP
Monadelphous Group Limited
9.65
1.98
25.81%
DE:0BS
Bapcor Ltd
2.84
-0.08
-2.74%
AU:EMB
Embelton Limited
8.33
-0.79
-8.66%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.01
1.30
47.97%
AU:MGH
MAAS Group Holdings Ltd.
4.24
0.16
3.92%

Reliance Worldwide Corp. Corporate Events

Change in Substantial Holder’s Interest at Reliance Worldwide Corporation
Jun 2, 2025

Reliance Worldwide Corporation Ltd has announced a change in the interests of a substantial holder, Aware Super Pty Ltd, which now holds a slightly reduced voting power of 7.45% compared to the previous 8.58%. This adjustment in voting power reflects a shift in the company’s shareholder structure, potentially impacting its governance dynamics and decision-making processes.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.70 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Reliance Worldwide Corporation Mitigates US Tariff Impacts, Adjusts FY25 Outlook
May 4, 2025

Reliance Worldwide Corporation Limited has announced measures to mitigate the impacts of newly introduced US tariffs on its operations, particularly focusing on reducing its reliance on Chinese imports. The company is diversifying its sourcing to countries like Vietnam, Taiwan, Korea, and Thailand, and implementing price increases in the US to offset tariff costs. Despite these efforts, RWC anticipates a net cost impact on its FY26 EBITDA due to tariffs, but expects to maintain gross margin dollars by FY27. The company’s trading outlook for FY25 has been adjusted due to deteriorating economic conditions in the US, with sales expected to be at the lower end of previous guidance ranges. RWC continues to expect strong cash flow conversion, although its adjusted EBITDA margin is projected to be slightly lower than FY24.

Yarra Capital Management Ceases Substantial Holding in Reliance Worldwide
Apr 30, 2025

Reliance Worldwide Corporation Ltd has announced that Yarra Capital Management Limited and its associated entities have ceased to be substantial holders in the company as of April 28, 2025. This change in substantial holding involved a significant disposal of shares amounting to $33,499,115, affecting over 8 million votes, which could impact the company’s shareholder composition and influence in the market.

Reliance Worldwide Issues Performance Rights to Employees
Apr 7, 2025

Reliance Worldwide Corporation Limited has announced the issuance of 37,857 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees and align their interests with corporate goals, potentially enhancing operational performance and stakeholder value.

Reliance Worldwide Corp. Announces Cessation of Securities
Apr 4, 2025

Reliance Worldwide Corporation Limited announced the cessation of 6,632,658 ordinary fully paid securities due to an on-market buy-back, effective March 31, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market perception positively by reducing the number of outstanding shares, which can enhance shareholder value.

Reliance Worldwide Issues New Equity Securities
Apr 3, 2025

Reliance Worldwide Corporation Limited announced the issuance of 180,789 ordinary fully paid securities as part of their unquoted equity securities. This move reflects the company’s ongoing efforts to manage its capital structure and could potentially impact its market positioning by enhancing liquidity and shareholder value.

Reliance Worldwide Corp. Announces Cessation of Performance Rights
Apr 3, 2025

Reliance Worldwide Corporation Limited announced the cessation of 600,959 performance rights due to unmet conditions, impacting its issued capital. This development may affect the company’s financial strategies and stakeholder interests, as it reflects on the company’s performance metrics and future incentive plans.

Reliance Worldwide Issues Unquoted Performance Rights to Employees
Apr 3, 2025

Reliance Worldwide Corporation Limited announced the issuance of 32,479 unquoted performance rights as part of an employee incentive scheme. This move is aimed at motivating and retaining employees by offering them a stake in the company’s future success, which could potentially enhance productivity and align employee interests with company goals.

Reliance Worldwide Finalizes AUD 30.97 Million Share Buy-Back
Mar 31, 2025

Reliance Worldwide Corporation Limited has announced the finalization of its on-market buy-back program, purchasing a total of 6,632,658 ordinary fully paid securities for a consideration of AUD 30,965,805.07. This buy-back is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting a commitment to returning capital to shareholders and maintaining a balanced approach to growth and investment.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 31, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing share buy-back program. As of April 1, 2025, the company has repurchased a total of 6,541,851 ordinary fully paid securities, with an additional 90,807 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 30, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing share buy-back program, with a total of 6,203,335 securities bought back prior to the previous day and an additional 338,516 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Securities Buy-Back Program
Mar 27, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing on-market buy-back program. As of March 28, 2025, the company has repurchased a total of 5,768,687 ordinary fully paid securities, with an additional 434,648 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 27, 2025

Reliance Worldwide Corporation Limited has announced an update regarding its ongoing share buy-back program, reporting the purchase of 557,384 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to over 5.2 million. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting a strong financial position and confidence in its future growth prospects.

Reliance Worldwide Corporation Updates on Market Buy-Back Program
Mar 25, 2025

Reliance Worldwide Corporation Limited has announced an update regarding its ongoing on-market buy-back program. As of March 25, 2025, the company has repurchased a total of 4,630,380 ordinary fully paid securities, including 363,131 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 19, 2025

Reliance Worldwide Corporation Limited announced an update on its ongoing share buy-back program, revealing that a total of 333,121 ordinary fully paid securities were repurchased on the previous day, bringing the total number of shares bought back to 3,398,148. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 18, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing share buy-back program, revealing that a total of 360,265 ordinary fully paid securities were bought back on the previous day, bringing the total to 3,037,883 securities bought back to date. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting confidence in its financial position and future prospects.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 17, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing share buy-back program. As of March 18, 2025, the company has bought back a total of 3,037,883 ordinary fully paid securities, with 436,338 purchased on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, potentially impacting its stock performance and market perception.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 16, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing share buy-back program, revealing that a total of 802,870 ordinary fully paid securities were bought back on the previous day, adding to the 1,798,675 securities already repurchased. This buy-back strategy is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach to optimizing financial performance and market positioning.

Reliance Worldwide Updates on Significant Buy-Back Progress
Mar 13, 2025

Reliance Worldwide Corporation Limited has announced an update regarding its ongoing on-market buy-back program. As of March 14, 2025, the company has bought back a total of 1,798,675 ordinary fully paid securities, with 632,812 purchased on the previous day alone. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Reliance Worldwide Updates on Share Buy-Back Progress
Mar 12, 2025

Reliance Worldwide Corporation Limited has announced an update regarding its ongoing share buy-back program. The company reported that it bought back 750,000 ordinary fully paid securities on the previous day, adding to the total of 415,863 securities bought back before that day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Yarra Capital Reduces Stake in Reliance Worldwide Corp.
Mar 12, 2025

Yarra Capital Management Limited and associated entities have reduced their voting power in Reliance Worldwide Corporation Ltd, a company involved in plumbing and water control systems, from 6.82% to 5.70%. This change, involving significant acquisitions and disposals of shares, reflects a shift in investment strategy that could impact the company’s market perception and stakeholder interests.

Reliance Worldwide Corporation Updates on Buy-Back Program
Mar 11, 2025

Reliance Worldwide Corporation Limited has announced an update on its ongoing on-market buy-back program, revealing that a total of 415,863 ordinary fully paid securities were bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach to financial management and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.