Reliance Worldwide Corp. (RWC) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: 1.85%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.53
• Revenue Growth: 8.95%
• EPS Growth: 3.33%
• Country: AU
• Employees: 2,900
• Sector: Industrials
• Sector Strength: 86
• Industry: Construction
• EPS (TTM): 0.15
• Shares Outstanding: 773,539,300
• 10 Day Avg. Volume: 2,108,230
• 30 Day Avg. Volume: 2,061,797
• PEG Ratio: 1.84
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.31
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 2.73
• Enterprise Value/Ebitda: 1.19
• 1Y Price Target: $5.08
• Price Target Upside: 18.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• 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. Business Overview & Revenue Model

Company Description

Reliance 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 Money

Reliance 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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.51B	1.25B	1.24B	1.17B	1.01B	798.72M
Gross Profit	983.04M	488.76M	478.21M	460.56M	443.56M	327.94M
EBITDA	506.24M	244.11M	272.70M	357.01M	340.83M	160.18M
Net Income	255.65M	112.07M	139.65M	137.44M	141.44M	61.46M
Balance Sheet
Total Assets	2.05B	2.14B	2.06B	2.09B	1.68B	1.52B
Cash, Cash Equivalents and Short-Term Investments	27.16M	19.91M	16.62M	27.68M	21.36M	56.46M
Total Debt	505.50M	560.81M	557.02M	695.45M	178.17M	338.93M
Total Liabilities	800.24M	880.13M	827.23M	955.39M	482.96M	545.60M
Stockholders Equity	1.25B	1.26B	1.23B	1.13B	1.20B	975.36M
Cash Flow
Free Cash Flow	504.65M	210.79M	207.75M	124.19M	170.12M	135.65M
Operating Cash Flow	586.99M	252.83M	250.26M	184.65M	206.61M	165.49M
Investing Cash Flow	-91.14M	-140.16M	-14.50M	-412.97M	―	―
Financing Cash Flow	-518.50M	-131.49M	-246.55M	332.41M	―	―

Reliance Worldwide Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.29
• 50DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBI	78 Outperform	AU$2.13B	26.00	7.48%	5.48%	19.38%	10.66%
MND	76 Outperform	€1.72B	22.71	15.97%	3.81%	11.00%	34.97%
RWC	72 Outperform	$3.27B	17.48	10.01%	1.85%	8.95%	3.33%
MGH	67 Neutral	AU$1.50B	19.35	9.50%	1.69%	-1.30%	-7.78%
EMB	66 Neutral	AU$17.97M	13.18	6.82%	3.60%	-20.98%	18.62%
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%
BAP	47 Neutral	€1.75B	―	-16.06%	3.11%	-0.30%	-267.50%

Reliance Worldwide Corp. Corporate Events

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.

Reliance Worldwide Issues Performance Rights to Employees

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.