RWS Holdings (RWS) AI Stock Analysis

• Market Cap: £325.43M
• Dividend Yield: 15.28%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -3.91%
• EPS Growth: -310.36%
• Country: UK
• Employees: 7,752
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.24
• Shares Outstanding: 369,807,650
• 10 Day Avg. Volume: 1,503,482
• 30 Day Avg. Volume: 1,100,490
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £192.50
• Price Target Upside: 116.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 93.00p ▲(4.61% Upside)

RWS Holdings' stock score is primarily driven by its strong technical indicators, suggesting bullish momentum. However, financial performance challenges and a negative P/E ratio weigh down the score. The high dividend yield is a positive factor for income investors.

Positive Factors

Diversified Revenue Streams

RWS's diversified revenue model across translation, localization, and IP services reduces dependency on a single income source, enhancing resilience against sector-specific downturns.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides RWS with financial flexibility to navigate economic fluctuations and invest in growth opportunities.

Strategic Partnerships

Collaborations with global partners expand RWS's market presence and service capabilities, supporting long-term growth and competitive positioning.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in maintaining market share and demand, potentially impacting long-term financial health and growth prospects.

Profitability Challenges

Negative profitability metrics reflect operational inefficiencies and market pressures, which could hinder RWS's ability to reinvest in business development.

Cash Flow Pressure

Declining free cash flow growth suggests potential liquidity issues, limiting RWS's capacity to fund operations and strategic initiatives without external financing.

RWS Holdings Business Overview & Revenue Model

Company Description

RWS Holdings (RWS) is a leading provider of translation, localization, and intellectual property support services, operating primarily in the language services and technology sectors. The company specializes in delivering high-quality linguistic and content solutions, catering to various industries including life sciences, technology, legal, and automotive. RWS's core products and services encompass translation and localization services, patent translations, and IP services, as well as proprietary technology solutions that enhance the efficiency and effectiveness of language-related tasks.

How the Company Makes Money

RWS generates revenue through a diversified model that includes multiple key streams. The primary revenue source comes from its translation and localization services, which involve providing tailored language solutions to clients across various sectors. This includes project-based work as well as long-term contracts with multinational corporations. Additionally, RWS earns income from its intellectual property services, such as patent translation and related legal services, which cater to businesses seeking to protect and manage their IP assets. The company also leverages technology by offering software solutions that automate and streamline translation processes, contributing to recurring revenue through licensing and subscription models. Strategic partnerships with global organizations enhance RWS's service offerings and market reach, further supporting its earnings through collaborative projects and shared resources.

RWS Holdings Financial Statement Overview

Summary

RWS Holdings is facing financial challenges with declining revenue and profitability. The income statement shows negative growth and margins, while the balance sheet is stable with manageable leverage. Cash flow metrics indicate potential challenges, highlighting the need for strategic adjustments.

Income Statement

RWS Holdings has experienced declining revenue over the past few years, with a negative growth rate of -3.10% in the most recent year. The company also reported a negative net income, resulting in a negative net profit margin. Gross profit margin has decreased, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity has been negative recently, reflecting profitability challenges. The equity ratio remains strong, suggesting a solid capital structure despite recent financial difficulties.

Cash Flow

RWS Holdings has seen a decline in free cash flow growth, indicating potential cash flow challenges. The operating cash flow to net income ratio is positive, suggesting operational cash generation, but the free cash flow to net income ratio has been under pressure due to declining profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	690.10M	690.10M	718.20M	733.80M	749.20M	694.50M
Gross Profit	259.00M	259.00M	336.50M	339.50M	350.20M	313.20M
EBITDA	-18.20M	-18.20M	135.80M	141.50M	154.20M	123.80M
Net Income	-99.80M	-99.80M	47.50M	-27.70M	62.70M	41.20M
Balance Sheet
Total Assets	1.04B	1.04B	1.21B	1.32B	1.48B	1.35B
Cash, Cash Equivalents and Short-Term Investments	32.60M	32.60M	61.50M	76.20M	101.20M	92.50M
Total Debt	80.50M	80.50M	101.60M	86.10M	76.00M	98.70M
Total Liabilities	277.70M	277.70M	306.90M	328.50M	334.60M	336.30M
Stockholders Equity	763.20M	763.20M	899.60M	987.30M	1.14B	1.01B
Cash Flow
Free Cash Flow	63.70M	61.20M	32.20M	67.20M	96.60M	61.10M
Operating Cash Flow	67.10M	64.60M	75.30M	107.50M	126.20M	84.30M
Investing Cash Flow	-20.60M	-20.60M	-17.70M	-71.20M	-43.70M	23.90M
Financing Cash Flow	-71.70M	-71.70M	-67.10M	-56.10M	-81.80M	-65.40M

RWS Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWS, the sentiment is Positive. The current price of 88.9 is above the 20-day moving average (MA) of 79.74, above the 50-day MA of 80.39, and above the 200-day MA of 88.43, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 68.99 is Neutral, neither overbought nor oversold. The STOCH value of 94.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RWS.

RWS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	80 Outperform	£524.28M	15.68	12.46%	3.12%	6.55%	18.44%
FRAN	75 Outperform	£273.40M	34.55	3.61%	1.48%	15.22%	1.23%
RST	66 Neutral	£380.65M	40.52	4.01%	2.16%	6.90%	145.00%
CPI	64 Neutral	£443.05M	27.49	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPHC	61 Neutral	£271.92M	-42.64	-40.39%	1.11%	15.27%	-73.02%
RWS	60 Neutral	£325.43M	-3.29	-12.00%	15.28%	-3.91%	-310.36%

RWS Holdings Corporate Events

RWS Holdings Reports Improved Profitability and Strategic Advancements in FY25

RWS Holdings reported a significant improvement in adjusted profit before tax (PBT) for the second half of the fiscal year 2025, achieving approximately £60 million, in line with guidance. Despite a 4% decline in reported revenues to £690 million, the company saw growth in its Language Services division, particularly in its AI services business, TrainAI. The company successfully refinanced its revolving credit facility, increasing it to $285 million, and introduced a new organizational structure to streamline operations. These strategic moves, alongside leadership appointments, are aimed at enhancing efficiency and positioning RWS for future growth.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £100.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Appoints Michael Wayne to Lead Media Localization

RWS Holdings has appointed Michael Wayne as Head of Media and Entertainment, highlighting the company’s focus on AI-powered media localization. Wayne’s experience, including his role at Papercup, will bolster RWS’s capabilities in video localization, aiming to connect global brands with diverse audiences more effectively.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £98.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Appoints Stephen Lamb as New CFO

RWS Holdings has announced the appointment of Stephen Lamb as its new Chief Financial Officer, effective in Q1 2026. Lamb brings 25 years of experience from high-growth international business services companies, including his recent role at Midwich Group plc. His expertise in strategic planning and financial leadership is expected to support RWS’s strategic shift towards becoming a technology-first content solutions company, enhancing its market positioning and operational capabilities.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £98.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings CFO Candida Davies to Step Down

RWS Holdings announced the resignation of its Chief Financial Officer, Candida Davies, who will remain in her role until the end of 2025 to ensure a smooth transition and the reporting of the full-year results. The company has initiated a search for her successor. CEO Benjamin Faes acknowledged Davies’ significant contributions during a transformative period for the company, highlighting her role in redefining the group’s strategy and operating model.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £98.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Total Voting Rights

RWS Holdings plc has announced its total voting rights as of 30 September 2025, with an issued and fully paid share capital comprising 369,807,646 ordinary shares, each with one voting right. This information is crucial for shareholders to determine their interest in the company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £98.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Total Voting Rights Update

RWS Holdings PLC has announced its total voting rights as of August 31, 2025, with an issued share capital comprising 369,807,646 ordinary shares, each carrying one voting right. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, potentially impacting their stake management and investment decisions.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £96.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Total Voting Rights Update

RWS Holdings plc has announced that as of 31 July 2025, its issued and fully paid share capital consists of 369,807,646 ordinary shares, each with one voting right. The company does not hold any shares in treasury, and this total number of voting rights will be used by shareholders to determine their notification obligations under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.20 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings CEO Acquires Shares Reflecting Confidence in Future

RWS Holdings announced that its CEO, Benjamin Faes, has acquired 28,067 ordinary shares through dividend reinvestment at a price of €1.01 per share. This transaction, conducted on the London Stock Exchange, reflects a strategic move by the CEO, potentially indicating confidence in the company’s future performance and stability. The acquisition aligns with regulatory compliance under the EU Market Abuse Regulation.

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.