Reliance Worldwide Corp. (RWC) AI Stock Analysis

• Market Cap: $2.47B
• Dividend Yield: 2%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.39
• Revenue Growth: 6.78%
• EPS Growth: 16.25%
• Country: AU
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.09
• Shares Outstanding: 766,433,000
• 10 Day Avg. Volume: 1,458,861
• 30 Day Avg. Volume: 1,912,045
• PEG Ratio: 1.17
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 9.95
• 1Y Price Target: $4.05
• Price Target Upside: 24.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.16
• Revenue Forecast (FY): $1.32B

• Rating: 60 Neutral
• Price Target: AU$4.00 ▲(22.70% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is primarily constrained by weakening growth and cash flow trends and by earnings-call-confirmed margin pressure from tariffs and commodities. This is partially offset by solid profitability, a stable balance sheet with moderate leverage, and a reasonable valuation with a modest dividend, while technical indicators point to limited momentum.

Positive Factors

Profitability margins

Sustained gross and net margins signal durable product-level profitability driven by scale and manufacturing efficiency. Healthy margins support operating cash flow and provide buffer against cyclical volume swings, enabling reinvestment in products, service and cost mitigation programs over the medium term.

Cash generation and leverage reduction

Strong operating cash generation and high conversion rates have funded meaningful debt reduction, preserving covenant headroom and financial flexibility. This stable cash profile supports ongoing capex, targeted M&A or shareholder returns while absorbing near-term margin volatility without immediate solvency risk.

Operational & strategic execution

Delivery of production and commercial milestones (new Poland assembly, product rollouts and Mexico plan) strengthens manufacturing footprint and reduces reliance on high-tariff sourcing. These structural moves improve lead times, service levels and long-term cost base, enhancing competitive position across regions.

Negative Factors

Material margin compression

A 400bp margin hit reflects structural pressure from tariffs, lower volumes and competitive investments, directly reducing free cash flow and return on capital. Unless tariff mitigation and volume recovery persistently restore mix and overhead absorption, profitability and reinvestment capacity will remain constrained.

Sharp revenue and FCF declines

Very steep declines in reported revenue and FCF indicate weakening demand and strained cash flexibility. Even with good OCF conversion, collapsing top-line and FCF reduce capacity for strategic spending, limit margin recovery options, and heighten sensitivity to further operational or market setbacks over the coming months.

Tariff and commodity exposure

Significant tariff and copper volatility create recurring cost shocks that erode margins until supply diversification completes. The quantified sensitivity means moderate commodity moves or tariff shifts can meaningfully swing EBITDA, necessitating sustained mitigation and pricing discipline to prevent persistent margin erosion.

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

RWC 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

Profitability remains healthy (gross margin 38.86%, net margin 9.51%) and leverage is moderate (debt-to-equity 0.33), but performance is weighed down by sharp declines in revenue growth (-47.52%) and free cash flow growth (-60.46%), indicating weaker top-line momentum and reduced cash flexibility.

Income Statement

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

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

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.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.28B	1.31B	1.25B	1.24B	1.17B	1.01B
Gross Profit	472.48M	510.87M	488.76M	478.21M	460.56M	443.56M
EBITDA	223.81M	267.70M	244.11M	298.32M	357.01M	267.44M
Net Income	100.99M	125.00M	112.07M	139.65M	137.44M	141.44M
Balance Sheet
Total Assets	2.20B	2.20B	2.14B	2.06B	2.09B	1.68B
Cash, Cash Equivalents and Short-Term Investments	26.01M	25.38M	19.91M	16.62M	27.68M	21.36M
Total Debt	546.39M	462.56M	560.81M	557.02M	695.45M	178.17M
Total Liabilities	820.94M	809.06M	880.13M	827.23M	955.39M	482.96M
Stockholders Equity	1.38B	1.39B	1.26B	1.23B	1.13B	1.20B
Cash Flow
Free Cash Flow	232.19M	199.52M	210.79M	207.75M	124.19M	170.12M
Operating Cash Flow	267.91M	233.00M	252.83M	250.26M	184.65M	206.61M
Investing Cash Flow	-35.33M	-30.05M	-140.16M	-14.50M	-412.97M	-35.44M
Financing Cash Flow	-234.62M	-201.40M	-131.49M	-246.55M	332.41M	-210.02M

Reliance Worldwide Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.26 is below the 20-day moving average (MA) of 3.58, below the 50-day MA of 3.74, and below the 200-day MA of 4.03, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 31.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MND	65 Neutral	€3.26B	30.32	17.57%	2.65%	7.20%	32.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWC	60 Neutral	$2.47B	16.24	9.42%	2.00%	6.78%	16.25%
MGH	59 Neutral	AU$1.72B	21.99	9.26%	1.30%	15.14%	-7.23%
BAP	51 Neutral	AU$450.57M	-3.06	3.40%	6.62%	-3.00%	―
DBI	51 Neutral	AU$2.52B	87.46	8.17%	4.73%	13.19%	14.79%
EMB	50 Neutral	AU$17.44M	17.66	4.57%	4.32%	-15.54%	-26.61%

Reliance Worldwide Corp. Corporate Events

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

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

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

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

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

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

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.