Reliance Worldwide Corp. (RWC) AI Stock Analysis

• Market Cap: $3.31B
• Dividend Yield: 1.79%
• Average Volume (3M): 2.83M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.58
• Revenue Growth: 8.95%
• EPS Growth: 3.33%
• Country: AU
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 94
• Industry: Construction
• EPS (TTM): 0.15
• Shares Outstanding: 773,539,300
• 10 Day Avg. Volume: 3,670,175
• 30 Day Avg. Volume: 2,831,837
• PEG Ratio: N/A
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.04
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 1.16
• 1Y Price Target: $5.17
• Price Target Upside: 19.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: AU$5.00 ▲(15.47%Upside)

The overall stock score for Reliance Worldwide Corp. Ltd. reflects its strong financial position and cash flow generation, which is offset by declining profitability margins. Technical indicators show some short-term bullish momentum, but longer-term trends remain a concern. Valuation metrics indicate the stock is fairly priced, with a moderate P/E ratio and modest dividend yield.

Reliance Worldwide Corp. Business Overview & Revenue Model

Company Description

Reliance 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 Money

Reliance Worldwide Corporation generates revenue primarily through the sale of its plumbing and heating products to a diverse customer base, including professional plumbing contractors, builders, and home improvement retailers. The company's revenue model is built on manufacturing and distributing innovative water control systems, which are sold under various proprietary brands. Key revenue streams include the sale of push-to-connect fittings, which offer time-saving solutions for plumbing installations, along with valves and pipe support systems. RWC's partnerships with global distributors and retailers further enhance its market reach and contribute to its earnings. Additionally, the company's focus on research and development, coupled with strategic acquisitions, supports its growth and maintains its competitive edge in the plumbing and heating industry.

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 needs attention. The balance sheet shows stability with manageable debt levels.

Income Statement

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.25B	1.24B	1.17B	1.01B	798.72M
Gross Profit	488.76M	478.21M	460.56M	443.56M	327.94M
EBITDA	244.11M	272.70M	357.01M	340.83M	160.18M
Net Income	112.07M	139.65M	137.44M	141.44M	61.46M
Balance Sheet
Total Assets	2.14B	2.06B	2.09B	1.68B	1.52B
Cash, Cash Equivalents and Short-Term Investments	19.91M	16.62M	27.68M	21.36M	56.46M
Total Debt	560.81M	557.02M	695.45M	178.17M	338.93M
Total Liabilities	880.13M	827.23M	955.39M	482.96M	545.60M
Stockholders Equity	1.26B	1.23B	1.13B	1.20B	975.36M
Cash Flow
Free Cash Flow	210.79M	207.75M	124.19M	170.12M	135.65M
Operating Cash Flow	252.83M	250.26M	184.65M	206.61M	165.49M
Investing Cash Flow	-140.16M	-14.50M	-412.97M	―	―
Financing Cash Flow	-131.49M	-246.55M	332.41M	―	―

Reliance Worldwide Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWC, the sentiment is Positive. The current price of 4.33 is above the 20-day moving average (MA) of 4.23, above the 50-day MA of 4.30, and below the 200-day MA of 4.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 66.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RWC.

Reliance Worldwide Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥266.83B	14.00	8.47%	2.88%	6.35%	13.13%
RWC	71 Outperform	$3.31B	17.64	10.01%	1.79%	8.95%	3.33%
8MP	―	€1.07B	22.79	15.97%	3.62%	―	―
0BS	―	€705.74M	―	-16.06%	3.74%	―	―
MGH	71 Outperform	AU$1.46B	18.84	9.50%	1.70%	-1.30%	-7.78%
DBI	69 Neutral	AU$2.23B	27.21	7.48%	4.89%	19.38%	10.66%
EMB	64 Neutral	AU$17.91M	13.13	6.82%	4.22%	-20.98%	18.62%

Reliance Worldwide Corp. Corporate Events

FIL Limited Ceases Substantial Holding in Reliance Worldwide Corporation

FIL Limited and its entities have ceased to be substantial holders in Reliance Worldwide Corporation Limited as of July 22, 2025. The notice details a series of transactions involving the buying and selling of common stock by FIL over several months, indicating a strategic shift in their investment portfolio. This change could impact Reliance Worldwide Corporation’s shareholder structure and market perception, potentially influencing its stock performance and investor relations.

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

Reliance Worldwide Corporation Ltd has experienced a change in the interests of a substantial holder, Aware Super Pty Ltd, which now holds a reduced voting power from 7.45% to 6.32%. This adjustment in voting power reflects a shift in the ownership structure, potentially impacting the company’s governance and decision-making processes.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Perpetual Limited Increases Stake in Reliance Worldwide Corporation

Perpetual Limited and its related bodies corporate have increased their voting power in Reliance Worldwide Corporation Limited from 5.035% to 6.042%, as of July 14, 2025. This change in substantial holding indicates a growing interest and potentially stronger influence by Perpetual Limited in the strategic decisions of RWC, which could impact the company’s market positioning and stakeholder dynamics.

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 Corp. Announces Cessation of Performance Rights

Reliance Worldwide Corporation Limited announced the cessation of 19,740 performance rights due to unmet conditions, impacting its issued capital. This development may influence the company’s financial strategies and stakeholder interests, as it reflects on the company’s operational adjustments and market positioning.

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 Corp. Issues New Securities to Strengthen Equity Structure

Reliance Worldwide Corporation Limited announced the issuance of 70,207 ordinary fully paid securities as of July 7, 2025. This move reflects the company’s ongoing efforts to manage its equity structure and may impact its market positioning by potentially increasing its capital base, which could influence stakeholder interests and company operations.

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 Issues Performance Rights to Employees

Reliance Worldwide Corporation Limited announced the issuance of 134,326 performance rights as part of an employee incentive scheme. These unquoted securities are not intended to be listed on the ASX, reflecting the company’s strategy to motivate and retain key personnel, potentially impacting its operational efficiency and market competitiveness.

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.

Perpetual Limited Acquires Substantial Stake in Reliance Worldwide Corporation

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

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

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

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

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.