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Reliance Worldwide Corp. Ltd. (AU:RWC)
ASX:RWC
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Reliance Worldwide Corp. (RWC) AI Stock Analysis

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AU:RWC

Reliance Worldwide Corp.

(Sydney:RWC)

Rating:71Outperform
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. (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 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
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.25B1.24B1.17B1.01B798.72M
Gross Profit488.76M478.21M460.56M443.56M327.94M
EBITDA244.11M272.70M357.01M340.83M160.18M
Net Income112.07M139.65M137.44M141.44M61.46M
Balance Sheet
Total Assets2.14B2.06B2.09B1.68B1.52B
Cash, Cash Equivalents and Short-Term Investments19.91M16.62M27.68M21.36M56.46M
Total Debt560.81M557.02M695.45M178.17M338.93M
Total Liabilities880.13M827.23M955.39M482.96M545.60M
Stockholders Equity1.26B1.23B1.13B1.20B975.36M
Cash Flow
Free Cash Flow210.79M207.75M124.19M170.12M135.65M
Operating Cash Flow252.83M250.26M184.65M206.61M165.49M
Investing Cash Flow-140.16M-14.50M-412.97M
Financing Cash Flow-131.49M-246.55M332.41M

Reliance Worldwide Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.33
Price Trends
50DMA
4.30
Positive
100DMA
4.34
Negative
200DMA
4.79
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.64
Neutral
STOCH
66.14
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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥266.83B14.008.47%2.88%6.35%13.13%
71
Outperform
$3.31B17.6410.01%1.79%8.95%3.33%
€1.07B22.7915.97%3.62%
€705.74M-16.06%3.74%
71
Outperform
AU$1.46B18.849.50%1.70%-1.30%-7.78%
69
Neutral
AU$2.23B27.217.48%4.89%19.38%10.66%
64
Neutral
AU$17.91M13.136.82%4.22%-20.98%18.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RWC
Reliance Worldwide Corp.
4.33
-0.62
-12.60%
DE:8MP
Monadelphous Group Limited
10.60
3.26
44.41%
DE:0BS
Bapcor Ltd
2.02
-0.86
-29.86%
AU:EMB
Embelton Limited
8.33
-0.39
-4.47%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.60
1.74
60.84%
AU:MGH
MAAS Group Holdings Ltd.
4.12
-0.24
-5.50%

Reliance Worldwide Corp. Corporate Events

FIL Limited Ceases Substantial Holding in Reliance Worldwide Corporation
Jul 24, 2025

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
Jul 18, 2025

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
Jul 16, 2025

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
Jul 7, 2025

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
Jul 6, 2025

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
Jul 6, 2025

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
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.

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 29, 2025