RWS Holdings (RWS) AI Stock Analysis

• Market Cap: £276.62M
• Dividend Yield: 17.01%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.65
• Revenue Growth: -0.78%
• EPS Growth: N/A
• Country: UK
• Employees: 7,752
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.04
• Shares Outstanding: 369,807,650
• 10 Day Avg. Volume: 1,503,482
• 30 Day Avg. Volume: 1,100,490
• PEG Ratio: -0.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 18.68
• 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: 162.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 86.00p ▲(17.49% Upside)

RWS Holdings' overall stock score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield making it attractive for value and income investors. However, the technical analysis indicates weak market momentum, which could pose short-term challenges. The financial performance is stable but highlights areas for improvement in revenue growth and cash flow conversion.

RWS Holdings Business Overview & Revenue Model

Company Description

RWS 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 Money

RWS generates revenue through multiple streams, primarily from its language services and technology solutions. Key revenue streams include fees for translation and localization services, which are charged based on project scope, word count, and complexity. Additionally, the company earns revenue from its intellectual property services, including patent translations and patent filing support, which are critical for clients in industries like pharmaceuticals and technology. RWS also offers proprietary translation technology and tools, which are licensed to clients, contributing to recurring revenue. Significant partnerships with multinational corporations and government agencies further bolster its earnings, as these clients often require ongoing language services to support their global operations. The company focuses on strategic acquisitions to expand its capabilities and market reach, enhancing its revenue potential.

RWS Holdings Financial Statement Overview

Summary

RWS Holdings maintains a solid financial position with strong equity and improving operational efficiency. However, the decline in revenue and free cash flow highlight areas for growth and risk management. The company is well-positioned in terms of leverage and equity stability, yet needs to focus on enhancing revenue growth and cash flow conversion to boost overall financial performance.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	712.20M	718.20M	733.80M	749.20M	694.50M	355.80M
Gross Profit	325.40M	336.50M	339.50M	350.20M	313.20M	139.60M
EBITDA	103.10M	135.80M	141.50M	154.20M	123.80M	87.70M
Net Income	25.10M	47.50M	-27.70M	62.70M	41.20M	46.40M
Balance Sheet
Total Assets	1.20B	1.21B	1.32B	1.48B	1.35B	592.50M
Cash, Cash Equivalents and Short-Term Investments	69.50M	61.50M	76.20M	101.20M	92.50M	51.40M
Total Debt	120.10M	101.60M	86.10M	76.00M	98.70M	89.30M
Total Liabilities	330.70M	306.90M	328.50M	334.60M	336.30M	183.60M
Stockholders Equity	869.90M	899.60M	987.30M	1.14B	1.01B	408.90M
Cash Flow
Free Cash Flow	72.20M	32.20M	67.20M	96.60M	61.10M	68.20M
Operating Cash Flow	73.90M	75.30M	107.50M	126.20M	84.30M	76.20M
Investing Cash Flow	-900.00K	-17.70M	-71.20M	-43.70M	23.90M	-31.00M
Financing Cash Flow	-62.00M	-67.10M	-56.10M	-81.80M	-65.40M	-40.60M

RWS Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWS, the sentiment is Negative. The current price of 73.2 is below the 20-day moving average (MA) of 80.24, below the 50-day MA of 86.00, and below the 200-day MA of 94.86, indicating a bearish trend. The MACD of -4.10 indicates Positive momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RWS.

RWS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	78 Outperform	£524.38M	15.41	12.46%	3.19%	6.55%	18.44%
FRAN	73 Outperform	£244.52M	30.90	3.61%	1.65%	15.22%	1.23%
RWS	66 Neutral	£276.62M	10.98	2.82%	17.01%	-0.78%	―
RST	63 Neutral	£338.89M	36.08	4.01%	2.61%	6.90%	145.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CPI	63 Neutral	£348.64M	21.33	9.00%	―	-4.87%	―
PPHC	58 Neutral	£280.74M	-44.02	-40.39%	1.10%	15.27%	-73.02%

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.