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

Reliance Worldwide Corp. (RWC) AI Stock Analysis

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AU:RWC

Reliance Worldwide Corp.

(Sydney:RWC)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
AU$4.00
▲(6.38% Upside)
Reliance Worldwide Corp.'s overall stock score reflects strong profitability and a stable balance sheet, offset by challenges in revenue growth and cash flow. The technical analysis indicates mixed signals, with no clear momentum direction. The valuation is reasonable, supported by a modest dividend yield.
Positive Factors
Balance Sheet Strength
Modest leverage (debt-to-equity 0.33) and a solid equity ratio provide durable financial flexibility. This balance sheet strength supports capital allocation for R&D, M&A, or cyclical downturns and preserves ability to invest without excessive refinancing risk.
Margin Sustainability
Healthy gross (38.86%) and net (9.51%) margins, with stable EBIT/EBITDA, reflect scale and cost control in manufacturing and distribution. Durable margins support reinvestment, pricing power and profitability even if top-line growth is uneven over the medium term.
Diverse Distribution Model
A multi-channel, multi-geography go-to-market (trade, wholesale, retail) reduces concentration risk and smooths demand cyclicality. Diversified distribution aids product adoption, supports steady replacement/renovation sales, and enhances long-term resilience.
Negative Factors
Sharp Revenue Decline
A near-term revenue collapse of -47.52% indicates material demand or execution issues that can persist absent strategic fixes. Sustained top-line decline undermines scale economics, weakens fixed-cost absorption and constrains funding for strategic investments.
Free Cash Flow Compression
A 60.46% drop in free cash flow materially reduces internal funding for capex, dividends and debt reduction. Even with operating cash covering net income, steep FCF erosion limits financial flexibility and heightens reliance on external financing for medium-term growth.
Declining Return on Equity
Falling ROE (now 8.99%) signals weakening returns on invested capital and potential capital inefficiencies. If driven by shrinking sales or margin pressure, lower ROE impairs the firm's ability to generate attractive shareholder returns and finance growth from retained earnings.

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 MoneyRWC generates revenue through the sale of its plumbing and water control products across various markets. Key revenue streams include direct sales to wholesalers, retailers, and contractors, as well as partnerships with major distributors in the plumbing and construction industries. The company benefits from a diversified product portfolio that allows it to cater to different customer segments, including residential, commercial, and industrial applications. Strategic partnerships with key players in the construction and plumbing sectors further enhance its market presence and contribute to its earnings. Additionally, RWC invests in research and development to innovate and expand its product offerings, thereby driving sales growth and increasing market share.

Reliance Worldwide Corp. Financial Statement Overview

Summary
Reliance Worldwide Corp. demonstrates strong profitability and a stable balance sheet, but faces challenges in revenue growth and cash flow generation. The company should focus on revitalizing its revenue streams and improving cash flow management to enhance financial performance.
Income Statement
65
Positive
Reliance Worldwide Corp. has shown a significant decline in revenue growth rate, with a negative growth of -47.52% in the latest period, indicating potential challenges in maintaining sales momentum. However, the company maintains healthy profitability margins with a gross profit margin of 38.86% and a net profit margin of 9.51%. The EBIT and EBITDA margins are also stable, suggesting efficient operational management despite revenue challenges.
Balance Sheet
72
Positive
The company's balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity (ROE) is 8.99%, which is reasonable but has decreased from previous years, suggesting a need for improved profitability. The equity ratio is solid, reflecting a stable financial structure.
Cash Flow
58
Neutral
Cash flow analysis reveals a significant decline in free cash flow growth at -60.46%, which could impact future investments and financial flexibility. However, the operating cash flow to net income ratio is 1.08, indicating that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio is 0.86, showing a good conversion of earnings into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.51B1.31B1.25B1.24B1.17B1.01B
Gross Profit983.04M510.87M488.76M478.21M460.56M443.56M
EBITDA547.71M267.70M244.11M298.32M357.01M267.44M
Net Income255.65M125.00M112.07M139.65M137.44M141.44M
Balance Sheet
Total Assets2.05B2.20B2.14B2.06B2.09B1.68B
Cash, Cash Equivalents and Short-Term Investments27.16M25.38M19.91M16.62M27.68M21.36M
Total Debt522.05M462.56M560.81M557.02M695.45M178.17M
Total Liabilities800.24M809.06M880.13M827.23M955.39M482.96M
Stockholders Equity1.25B1.39B1.26B1.23B1.13B1.20B
Cash Flow
Free Cash Flow504.65M199.52M210.79M207.75M124.19M170.12M
Operating Cash Flow586.99M233.00M252.83M250.26M184.65M206.61M
Investing Cash Flow-91.14M-30.05M-140.16M-14.50M-412.97M-35.44M
Financing Cash Flow-518.50M-201.40M-131.49M-246.55M332.41M-210.02M

Reliance Worldwide Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.76
Price Trends
50DMA
3.94
Negative
100DMA
4.01
Negative
200DMA
4.12
Negative
Market Momentum
MACD
-0.04
Positive
RSI
41.51
Neutral
STOCH
39.53
Neutral
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 3.76 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 3.94, and below the 200-day MA of 4.12, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$2.41B27.358.17%4.73%13.19%14.79%
65
Neutral
€3.11B36.6317.57%2.65%7.20%32.60%
64
Neutral
AU$1.99B26.249.26%1.30%15.14%-7.23%
64
Neutral
$2.84B15.139.42%2.00%6.78%16.25%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
54
Neutral
AU$726.34M25.813.40%6.62%-3.00%
50
Neutral
AU$17.44M18.854.57%4.32%-15.54%-26.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RWC
Reliance Worldwide Corp.
3.76
-1.45
-27.79%
AU:MND
Monadelphous Group Limited
31.14
16.30
109.87%
AU:BAP
Bapcor Ltd
2.14
-2.47
-53.57%
AU:EMB
Embelton Limited
8.08
-0.11
-1.34%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.86
1.46
42.94%
AU:MGH
MAAS Group Holdings Ltd.
5.46
1.05
23.81%

Reliance Worldwide Corp. Corporate Events

Reliance Worldwide Sets Date for Half-Year 2026 Results and Investor Webcast
Jan 19, 2026

Reliance Worldwide Corporation has scheduled the release of its financial results for the half year ended 31 December 2025 on 17 February 2026, signaling an upcoming update on the company’s trading performance. Management will host a webcast briefing for investors and analysts at 9:00am AEDT on the same day, with a replay available online, underscoring the company’s ongoing engagement with the market and its focus on providing timely disclosure to stakeholders.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.25 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Reliance Worldwide Confirms Final Shareholdings of Departing Director William Stuart Crosby
Jan 18, 2026

Reliance Worldwide Corporation Limited has announced that director William Stuart Crosby has ceased to be a director effective 19 January 2026. At the time of his cessation, Crosby held 150,506 ordinary shares in his own name and had an indirect interest in a further 51,250 shares held through Gore Street Nominees Pty Ltd as trustee of a discretionary family trust, where he is both a director and beneficiary, providing clarity to investors on his final equity stake as he departs the board.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.25 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Reliance Worldwide Chair Stuart Crosby Retires, Interim Successor Appointed
Jan 18, 2026

Reliance Worldwide Corporation has announced the immediate retirement of its Chair, Stuart Crosby, from the Board due to health issues. Non-executive director Russell Chenu will serve as interim Chair while the Board conducts a search for an additional non-executive director, who is intended to be appointed as the new Chair, signalling a managed leadership transition. Crosby, who joined the Board in 2016 and became Chair in 2019, is credited with refreshing the Board, establishing new committees, and strengthening oversight in areas such as health and safety, sustainability, and remuneration, changes that have shaped RWC’s governance framework and its collaboration with management.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.20 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Reliance Worldwide Reports Lapse of 431 Performance Rights
Jan 7, 2026

Reliance Worldwide Corporation has notified the ASX of the cessation of 431 performance rights (security code RWCAD) after the conditions attached to those rights were not met or became incapable of being satisfied as at 31 December 2025. The lapse marginally reduces the company’s pool of potential equity-based remuneration, signalling that certain performance hurdles for incentive awards were not achieved, but it does not affect existing ordinary shareholders and represents a routine adjustment to the company’s issued capital structure.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.20 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Reliance Worldwide Confirms Lapse of 56,000 Performance Rights
Jan 5, 2026

Reliance Worldwide Corporation has notified the market that 56,000 performance rights (ASX code: RWCAD) have lapsed as of 31 December 2025 because the conditions attached to those rights were not satisfied or could no longer be met. The cessation of these rights modestly reduces the company’s potential future share-based dilution and reflects a tightening of its issued capital structure, a detail of interest to investors tracking the alignment of executive incentives with shareholder outcomes.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.20 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 82,030 Unquoted Performance Rights Under Incentive Scheme
Jan 5, 2026

Reliance Worldwide Corporation Limited has notified the market of the issue of 82,030 unquoted performance rights under its employee incentive scheme, with an effective issue date of 12 December 2025. The move underscores the company’s continued use of equity-based compensation to align employees’ interests with shareholders and support talent retention, without diluting the pool of quoted securities on the ASX.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.20 price target. To see the full list of analyst forecasts on Reliance Worldwide Corp. stock, see the AU:RWC Stock Forecast page.

Perpetual Limited Ceases Substantial Holding in Reliance Worldwide
Nov 3, 2025

Perpetual Limited and its related bodies corporate have ceased to be substantial holders in Reliance Worldwide Corporation Limited as of October 30, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market dynamics, potentially affecting investor perceptions and stock performance.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.20 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
Oct 24, 2025

Reliance Worldwide Corporation Limited announced the cessation of 1,963,569 performance rights due to the lapse of conditional rights that were not satisfied. This announcement highlights a potential shift in the company’s capital management strategy, which may influence its financial performance and stakeholder interests.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.55 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. Hosts Investor Presentation
Oct 23, 2025

Reliance Worldwide Corporation Limited (ASX: RWC) announced an investor presentation scheduled for today, which will provide insights into the company’s current strategies and future plans. This presentation is expected to impact stakeholders by offering detailed information on the company’s operational focus and market strategies, potentially influencing investor confidence and market positioning.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.55 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 Updates Director’s Interest
Oct 23, 2025

Reliance Worldwide Corporation Limited announced a change in the director’s interest notice, specifically regarding Heath Sharp. The company disclosed that on October 22, 2025, Heath Sharp was granted 1,292,720 rights under the Equity Incentive Plan, as approved by shareholders during the Annual General Meeting. This change reflects an increase in his holdings of rights, which now total 4,044,387, potentially impacting the company’s governance and signaling confidence in its future performance.

The most recent analyst rating on (AU:RWC) stock is a Hold with a A$4.55 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. AGM Results: Key Resolutions Passed Amid Shareholder Dissent
Oct 22, 2025

At the Annual General Meeting of Reliance Worldwide Corporation Limited, several key resolutions were passed, including the re-election of directors Christine Bartlett and Stuart Crosby, and the approval of a long-term incentive grant for CEO Heath Sharp. However, the Remuneration Report faced significant opposition, marking a ‘second strike’ under the Corporations Act, which led to the proposal of a Conditional Spill Resolution that was ultimately not carried. These outcomes reflect shareholder sentiment and could influence future corporate governance and executive compensation strategies.

The most recent analyst rating on (AU:RWC) stock is a Buy 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.

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: Oct 25, 2025