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RWS Holdings PLC (GB:RWS)
LSE:RWS

RWS Holdings (RWS) AI Stock Analysis

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GB

RWS Holdings

(LSE:RWS)

Rating:76Outperform
Price Target:
100.00p
â–˛(13.64%Upside)
The strong valuation and positive corporate events drive the score, despite financial performance challenges such as revenue decline and cash flow issues. Technical indicators show neutral momentum.

RWS Holdings (RWS) vs. iShares MSCI United Kingdom ETF (EWC)

RWS Holdings Business Overview & Revenue Model

Company DescriptionRWS Holdings plc provides technology-enabled language, content management, and intellectual property (IP) services. It operates through four segments: Language Services, Regulated Industries, IP Services, and Language and Content Technology. The Language Services segment provides language services and helps clients to create, translate, and deliver content in approximately 250 languages. The Regulated Industries segment offers a full suite of language services, including language solutions for clinical trial management, linguistic validation of clinical outcomes assessments, insurance, retail, commercial and investment banking, compliance, mergers and acquisitions, and litigation services. The IP Services segment provides patent translation and filing services, as well as a range of IP search services. The Language and Content Technology segment offers language technology and artificial intelligence solutions that enables enterprises to create, manage, translate, and automate content in various languages; and content management technology support services. It serves automotive, energy, retail and e-commerce, legal, travel and hospitality, leisure, finance, industrial and manufacturing, life sciences, high-tech software, chemical, media, aerospace and defense, managed care, telecom, and government sectors. The company primarily operates in the United Kingdom, the United States, Continental Europe, and internationally. RWS Holdings plc was founded in 1958 and is headquartered in Chalfont St Peter, the United Kingdom.
How the Company Makes MoneyRWS Holdings generates revenue primarily through its diverse portfolio of language and content management services. The company's key revenue streams include translation and localization services, where they help clients adapt their content for international markets. Additionally, they earn from intellectual property services by providing patent translation and filing services, particularly valuable for clients in the legal and technology sectors. RWS also benefits from strategic partnerships and long-term contracts with multinational corporations and government agencies, which enhance its revenue stability and growth potential. By leveraging its technology platforms and expert workforce, RWS is able to deliver high-quality, scalable solutions that meet the specific needs of its global clientele.

RWS Holdings Financial Statement Overview

Summary
RWS Holdings shows a solid financial position with strong equity and improving operational efficiency. The stable gross profit margin and improvement in EBIT and EBITDA margins are positive indicators. However, a revenue decline and significant drop in free cash flow highlight potential risks.
Income Statement
70
Positive
RWS Holdings exhibits a stable gross profit margin of 46.8% and a net profit margin of 6.6% for the latest annual period. Despite a revenue decline of 2.1% compared to the previous year, the company shows improvement in EBIT margin at 9.2% and EBITDA margin at 18.9%, indicating better operational efficiency. However, the decrease in total revenue and previous year's negative EBIT highlight areas for potential risk.
Balance Sheet
75
Positive
The balance sheet shows strong equity, with an equity ratio of 74.6% and a low debt-to-equity ratio of 0.11. The return on equity is 5.3%, indicating moderate returns for shareholders. The strong equity position provides stability, although the relatively low ROE suggests room for improvement in profitability.
Cash Flow
65
Positive
The cash flow analysis reveals a decrease in free cash flow by 52.1% year-over-year, affecting overall cash flow strength. However, the operating cash flow to net income ratio is robust at 1.59, indicating efficient cash generation from operations relative to net income. The free cash flow to net income ratio of 0.68 suggests moderate conversion of net income to free cash flow.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue718.20M733.80M749.20M694.50M355.80M
Gross Profit336.50M339.50M350.20M313.20M139.60M
EBITDA135.80M141.50M154.20M123.80M87.70M
Net Income47.50M-27.70M62.70M41.20M46.40M
Balance Sheet
Total Assets1.21B1.32B1.48B1.35B592.50M
Cash, Cash Equivalents and Short-Term Investments61.50M76.20M101.20M92.50M51.40M
Total Debt101.60M86.10M76.00M98.70M89.30M
Total Liabilities306.90M328.50M334.60M336.30M183.60M
Stockholders Equity899.60M987.30M1.14B1.01B408.90M
Cash Flow
Free Cash Flow32.20M67.20M96.60M61.10M68.20M
Operating Cash Flow75.30M107.50M126.20M84.30M76.20M
Investing Cash Flow-17.70M-71.20M-43.70M23.90M-31.00M
Financing Cash Flow-67.10M-53.50M-81.80M-65.40M-40.60M

RWS Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price88.00
Price Trends
50DMA
80.57
Positive
100DMA
100.89
Negative
200DMA
123.37
Negative
Market Momentum
MACD
1.27
Positive
RSI
52.37
Neutral
STOCH
25.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWS, the sentiment is Neutral. The current price of 88 is above the 20-day moving average (MA) of 87.98, above the 50-day MA of 80.57, and below the 200-day MA of 123.37, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RWS.

RWS Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJSG
79
Outperform
ÂŁ643.17M18.5612.12%2.51%10.34%33.59%
77
Outperform
ÂŁ294.58M40.483.36%1.25%14.79%165.03%
GBRWS
76
Outperform
£325.43M12.922.82%5.57%-0.78%―
GBCPI
69
Neutral
£387.02M5.0049.03%―-10.33%―
GBRST
68
Neutral
£359.43M28.725.32%2.90%-0.65%―
68
Neutral
€2.80B17.639.89%2.89%-0.64%-28.31%
63
Neutral
£197.38M―-28.97%3.32%7.76%-60.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RWS
RWS Holdings
88.00
-87.24
-49.78%
GB:CPI
Capita plc
340.50
108.00
46.45%
GB:FRAN
Franchise Brands
153.00
-7.33
-4.57%
GB:JSG
Johnson Service
158.40
2.12
1.36%
GB:RST
Restore
262.50
3.83
1.48%
GB:PPHC
Public Policy Holding Co., Inc.
158.50
26.60
20.17%

RWS Holdings Corporate Events

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
RWS Holdings Grants Share Options to New PDMRs
Neutral
Jul 2, 2025

RWS Holdings plc announced the granting of options over ordinary shares to newly appointed Persons Discharging Managerial Responsibilities (PDMRs) under its Long Term Incentive Plan. This move, compliant with the EU Market Abuse Regulation, involves key figures such as Joseph Ayala and Christina Scott, and reflects RWS’s commitment to aligning managerial incentives with company performance, potentially impacting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £1.95 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Regulatory Filings and Compliance
RWS Holdings Announces Total Voting Rights Update
Neutral
Jul 1, 2025

RWS Holdings, a company listed on the stock market, has announced its total voting rights as of June 30, 2025. The company’s issued share capital consists of 369,807,646 ordinary shares, each with one voting right, and no shares are held in treasury. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Business Operations and Strategy
RWS Holdings Appoints Deutsche Bank AG as New Adviser
Positive
Jun 30, 2025

RWS Holdings PLC has announced a change in its Nominated Adviser and Broker from Numis Securities Limited to Deutsche Bank AG, London Branch, following the acquisition of Numis Securities Limited’s parent company by Deutsche Bank AG. This strategic move is expected to enhance RWS Holdings’ financial advisory and brokerage services, potentially impacting its market positioning and operations positively.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.05 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
RWS Holdings Acquires Papercup’s AI Dubbing Technology to Enhance Content Localization
Positive
Jun 26, 2025

RWS Holdings has acquired the intellectual property of Papercup’s AI dubbing technology, a move that enhances RWS’s capabilities in multilingual video, voice, and content localization. This acquisition is part of RWS’s strategy to integrate advanced AI into its technology stack, allowing it to offer scalable and brand-consistent video dubbing solutions. By combining Papercup’s technology with its existing language technologies and vast network of language experts, RWS aims to transform enterprise content delivery, making it more accessible and cost-effective for global audiences.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
RWS Holdings Sees Change in Voting Rights Structure
Neutral
Jun 23, 2025

RWS Holdings PLC has announced a change in its voting rights structure following an acquisition of financial instruments by Spreadex LTD. The acquisition has resulted in Spreadex holding a total of 4.2323% of voting rights in RWS Holdings, marking an increase from its previous position. This change could impact the company’s governance and influence Spreadex’s role in future company decisions.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Jupiter Fund Management Acquires Significant Stake in RWS Holdings
Neutral
Jun 18, 2025

RWS Holdings PLC, a UK-based company, has announced a significant change in its shareholder structure. Jupiter Fund Management PLC has acquired a 5.06% stake in RWS Holdings, crossing a major threshold in voting rights. This acquisition could potentially influence the company’s strategic decisions and impact its market positioning, as Jupiter Fund Management is a prominent player in the financial sector.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Other
RWS Holdings Announces Change in Voting Rights Structure
Neutral
Jun 18, 2025

RWS Holdings Plc, a company involved in the acquisition and disposal of voting rights, has announced a change in its voting rights structure. Richard Griffiths, based in St Helier, Jersey, has increased his voting rights percentage to 4.77% from a previous 3.94%, indicating a significant shift in shareholder influence within the company.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

DividendsFinancial Disclosures
RWS Holdings Corrects Dividend Timetable in Financial Results
Neutral
Jun 17, 2025

RWS Holdings plc announced a correction to the dividend timetable initially released in their Half-Year Financial Results. The correct ex-dividend date is 26 June 2025, and the record date is 27 June 2025, with the dividend payment scheduled for 18 July 2025. This correction ensures accurate information for shareholders and maintains the integrity of the company’s financial communications.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
RWS Holdings Unveils New Growth Strategy Amidst Declining Profits
Neutral
Jun 17, 2025

RWS Holdings plc reported its half-year results for the six months ending March 31, 2025, showing a slight decline in revenue and a significant drop in profit before tax due to non-trading items and changes in business mix. Despite these challenges, the company unveiled a new growth strategy aimed at accelerating growth and improving earnings quality through a simplified market approach, regional sales teams, and a technology-first proposition. This strategy includes the acquisition of Papercup’s IP to enhance dubbing capabilities and a focus on AI-driven solutions, positioning RWS to better integrate with client operations and shift towards more predictable revenue models.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
RWS Holdings PLC Announces Change in Voting Rights
Neutral
Jun 11, 2025

RWS Holdings PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal by Liontrust Investment Partners LLP. The notification indicates that Liontrust’s voting rights in RWS Holdings have decreased from 9.6552% to 4.7786%, which may impact the company’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Business Operations and Strategy
RWS Holdings Announces Change in Major Shareholder Stake
Neutral
Jun 10, 2025

RWS Holdings Plc announced a change in major holdings, with Richard Griffiths acquiring a 3.94% stake through financial instruments. This acquisition reflects a strategic move that could influence the company’s voting dynamics and potentially impact its decision-making processes, signaling a shift in stakeholder influence.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Regulatory Filings and Compliance
RWS Holdings Reports Major Holdings Notification by Spreadex LTD
Neutral
Jun 6, 2025

RWS Holdings PLC has announced a notification of major holdings due to an acquisition or disposal of financial instruments by Spreadex LTD, a company based in St. Albans, United Kingdom. Spreadex LTD now holds 3.4868% of voting rights through financial instruments, which could impact RWS Holdings’ shareholder structure and market dynamics.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £1.95 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Regulatory Filings and Compliance
RWS Holdings Announces Total Voting Rights Update
Neutral
Jun 2, 2025

RWS Holdings has announced its total voting rights as of May 31, 2025, with its fully paid share capital comprising 369,807,646 ordinary shares, each with one voting right. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
RWS Holdings Appoints Christina Scott as Chief Product and Technology Officer
Positive
May 12, 2025

RWS Holdings plc has appointed Christina Scott as Chief Product and Technology Officer, a newly created role aimed at enhancing the company’s global product and technology strategy. With over 25 years of experience in technology and digital transformation, Scott will drive innovation and growth, focusing on delivering scalable solutions and a clear product roadmap. Her appointment is expected to strengthen RWS’s market position and operational excellence, benefiting stakeholders by aligning the company’s offerings with evolving customer needs.

Business Operations and Strategy
RWS Holdings Executive Acquires Significant Shareholding
Positive
May 8, 2025

RWS Holdings plc announced that Vasagi Kothandapani, President of Enterprise Services, has acquired 96,266 ordinary shares in the company. This transaction, conducted on the London Stock Exchange, reflects a significant investment by a senior executive, potentially signaling confidence in the company’s strategic direction and future performance. Such moves can impact stakeholder perceptions and influence market dynamics.

Business Operations and Strategy
RWS Holdings PLC Announces Change in Major Shareholder Voting Rights
Neutral
May 6, 2025

RWS Holdings PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP reducing its voting rights from 10.6358% to 9.6552%. This adjustment in holdings may influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder interests.

M&A TransactionsBusiness Operations and Strategy
RWS Holdings Announces Change in Voting Rights Structure
Neutral
May 2, 2025

RWS Holdings PLC has announced a change in its voting rights structure following an acquisition or disposal by Liontrust Investment Partners LLP. As of April 30, 2025, Liontrust’s voting rights in RWS Holdings have decreased from 12.0007% to 10.6358%, indicating a shift in shareholder influence within the company.

Business Operations and StrategyRegulatory Filings and Compliance
RWS Holdings Chairman Acquires Significant Shareholding
Positive
May 1, 2025

RWS Holdings plc announced that its Chairman, Julie Southern, has acquired 74,611 ordinary shares in the company at a price of 67.01 pence per share. This transaction, disclosed in compliance with EU Market Abuse Regulation, reflects confidence in the company’s strategic direction and could positively impact stakeholder perception and market positioning.

Regulatory Filings and Compliance
RWS Holdings Announces Total Voting Rights Update
Neutral
May 1, 2025

RWS Holdings plc, a company listed on the stock market, has announced its total voting rights as of April 30, 2025. The company has an issued and fully paid share capital of 369,807,646 ordinary shares, each with one voting right, and does not hold any shares in treasury. This information is crucial for shareholders to determine their interest or any changes in their interest in the company, in compliance with the Financial Conduct Authority’s rules.

Regulatory Filings and Compliance
RWS Holdings Announces Total Voting Rights Update
Neutral
May 1, 2025

RWS Holdings plc, a company listed on the stock market, has announced its total voting rights as of April 30, 2025. The company’s issued share capital consists of 369,807,646 ordinary shares, each with one voting right, and it holds no shares in treasury. This announcement is relevant for shareholders as it provides the denominator for calculating their interest in the company under the Financial Conduct Authority’s rules.

Regulatory Filings and Compliance
RWS Holdings Sees Change in Voting Rights by Liontrust
Neutral
Apr 30, 2025

RWS Holdings PLC has been notified of a change in voting rights by Liontrust Investment Partners LLP, which now holds 12.0007% of the company’s voting rights. This adjustment in holdings, effective as of April 28, 2025, reflects a slight decrease from the previous 12.4847% and could influence the company’s shareholder dynamics and decision-making processes.

Business Operations and Strategy
Octopus Investments Increases Stake in RWS Holdings
Positive
Apr 29, 2025

RWS Holdings PLC announced that Octopus Investments Limited has increased its voting rights in the company to 7.41%, up from a previous 6.99%. This change in voting rights reflects a strategic move by Octopus Investments, potentially impacting RWS Holdings’ governance and decision-making processes, and indicating confidence in the company’s future prospects.

Business Operations and Strategy
RWS Holdings PLC Announces Change in Major Holdings
Neutral
Apr 28, 2025

RWS Holdings PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP reducing its voting rights from 13.055% to 12.4847%. This adjustment in holdings reflects a slight decrease in Liontrust’s influence within the company, potentially impacting its strategic decisions and stakeholder dynamics.

Other
RWS Holdings CEO Acquires Significant Shareholding
Positive
Apr 25, 2025

RWS Holdings plc announced that its CEO, Benjamin Faes, has acquired 1,000,000 ordinary shares at a price of 67.90 pence per share. This transaction is significant as it reflects confidence in the company’s future prospects and may impact market perceptions positively, reinforcing RWS’s strong position in the industry.

Business Operations and StrategyFinancial Disclosures
RWS Holdings Reports Modest Growth Amid Transition Challenges
Negative
Apr 24, 2025

RWS Holdings reported a 1.3% organic constant currency revenue growth for the first half of 2025, despite a 1.8% decline in reported revenue compared to the previous year. The company saw strong performances in its software products division and AI-led services, particularly in the APAC region. However, challenges in the life sciences segment and transition costs impacted profitability, with adjusted profit before tax expected to be £17 million, down from £46 million the previous year. The company anticipates modest single-digit growth for the full year, driven by efficiency and automation investments.

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 04, 2025