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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:72Outperform
Price Target:
AU$5.00
▲(16.55%Upside)
Reliance Worldwide Corp. Ltd. has a strong financial base, characterized by consistent revenue growth and robust cash flow generation. Despite this, technical indicators suggest mixed momentum, and the company's valuation is fairly standard within its industry. The absence of significant earnings call insights and corporate events limits the depth of analysis, but the overall stability is evident.

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

Reliance Worldwide Corp. Business Overview & Revenue Model

Company DescriptionReliance Worldwide Corporation Ltd. (RWC) is a global leader in the design, manufacture, and supply of premium water flow and control products and solutions for the plumbing industry. With a strong presence in the Americas, Asia-Pacific, and European markets, RWC provides innovative products such as plumbing fittings, pipes, valves, and water control devices. The company is renowned for its SharkBite push-to-connect plumbing solutions, which are widely used by professional plumbers and DIY enthusiasts alike.
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. However, profitability margins have slightly diminished, which requires attention.
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.51B1.25B1.24B1.17B1.01B798.72M
Gross Profit983.04M488.76M478.21M460.56M443.56M327.94M
EBITDA506.24M244.11M272.70M357.01M340.83M160.18M
Net Income255.65M112.07M139.65M137.44M141.44M61.46M
Balance Sheet
Total Assets2.05B2.14B2.06B2.09B1.68B1.52B
Cash, Cash Equivalents and Short-Term Investments27.16M19.91M16.62M27.68M21.36M56.46M
Total Debt505.50M560.81M557.02M695.45M178.17M338.93M
Total Liabilities800.24M880.13M827.23M955.39M482.96M545.60M
Stockholders Equity1.25B1.26B1.23B1.13B1.20B975.36M
Cash Flow
Free Cash Flow504.65M210.79M207.75M124.19M170.12M135.65M
Operating Cash Flow586.99M252.83M250.26M184.65M206.61M165.49M
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
Neutral
Last Price4.29
Price Trends
50DMA
4.33
Negative
100DMA
4.46
Negative
200DMA
4.91
Negative
Market Momentum
MACD
-0.05
Negative
RSI
52.09
Neutral
STOCH
63.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Neutral. The current price of 4.29 is above the 20-day moving average (MA) of 4.25, below the 50-day MA of 4.33, and below the 200-day MA of 4.91, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 63.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RWC.

Reliance Worldwide Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUDBI
78
Outperform
AU$2.13B26.007.48%5.48%19.38%10.66%
AUMND
76
Outperform
€1.72B22.7115.97%3.81%11.00%34.97%
AURWC
72
Outperform
$3.27B17.4810.01%1.85%8.95%3.33%
AUMGH
67
Neutral
AU$1.50B19.359.50%1.69%-1.30%-7.78%
AUEMB
66
Neutral
AU$17.97M13.186.82%3.60%-20.98%18.62%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
AUBAP
47
Neutral
€1.75B-16.06%3.11%-0.30%-267.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RWC
Reliance Worldwide Corp.
4.29
-0.01
-0.30%
AU:MND
Monadelphous Group Limited
17.32
5.32
44.31%
AU:BAP
Bapcor Ltd
5.15
0.22
4.42%
AU:EMB
Embelton Limited
8.33
-0.77
-8.46%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.29
1.43
50.00%
AU:MGH
MAAS Group Holdings Ltd.
4.13
0.04
0.98%

Reliance Worldwide Corp. Corporate Events

Perpetual Limited Acquires Substantial Stake in Reliance Worldwide Corporation
Jul 4, 2025

Perpetual Limited and its related bodies corporate have become a substantial holder in Reliance Worldwide Corporation Limited, acquiring a 5.035% voting power with 38,946,857 ordinary shares. This acquisition signifies a strategic investment by Perpetual Limited, potentially impacting RWC’s shareholder dynamics and indicating confidence in the company’s market position and future prospects.

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 Sets Date for 2025 Earnings Release
Jun 18, 2025

Reliance Worldwide Corporation Limited has announced the release date for its full-year financial results for the year ending June 30, 2025. The results will be disclosed on August 19, 2025, followed by a briefing for investors and analysts. This announcement is part of the company’s ongoing efforts to maintain transparency and engage with its stakeholders.

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.

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.

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.Date of analysis: Jul 04, 2025