RWS Holdings (RWS) AI Stock Analysis

• Market Cap: £348.73M
• Dividend Yield: 15.28%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• 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: 0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 5.57
• 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: 96.00p ▲(7.99% 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: Neutral

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 85.43, above the 50-day MA of 77.86, and above the 200-day MA of 81.50, indicating a bullish trend. The MACD of 3.51 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 43.44 is Neutral, 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
MTO	76 Outperform	£2.12B	21.38	20.62%	2.58%	11.42%	-17.18%
FRAN	75 Outperform	£263.78M	33.33	3.61%	1.52%	15.22%	1.23%
RST	66 Neutral	£384.07M	40.89	4.01%	2.31%	6.90%	145.00%
CPI	64 Neutral	£472.96M	27.52	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPHC	61 Neutral	£253.07M	-39.68	-40.39%	1.11%	15.27%	-73.02%
RWS	60 Neutral	£348.73M	-3.39	-12.00%	15.28%	-3.91%	-310.36%

RWS Holdings Corporate Events

RWS Publishes 2025 Annual Report and Sets February Date for 2026 AGM

RWS Holdings has published its Annual Report and Accounts for the year ended 30 September 2025 and the Notice of its 2026 Annual General Meeting on its investor website, with hard copies to be distributed to shareholders shortly. The AGM will take place on 11 February 2026 at Slaughter and May’s London offices, and the company is encouraging shareholders to vote by proxy and appoint the chair as their proxy, underscoring an emphasis on orderly governance and shareholder participation in the context of its evolving AI-focused operations and continued global client base.

The most recent analyst rating on (GB:RWS) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Confirms Total Voting Rights at Year-End 2025

RWS Holdings has confirmed that, as of 31 December 2025, its issued and fully paid share capital consists of 369,807,646 ordinary shares of 1 pence each, with one voting right attached to every share and no shares held in treasury. This disclosure sets the official total number of voting rights at 369,807,646, providing shareholders and market participants with the denominator they must use when calculating and reporting any holdings or changes in holdings under the UK’s transparency and notification regime.

The most recent analyst rating on (GB:RWS) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Leadership Changes Amid Strategic Shift

RWS Holdings announced the resignation of Julie Southern as Chairman and David Clayton as Senior Independent Director, effective December 31, 2025. Their departure follows a period of strategic board strengthening and the implementation of a new AI-led strategy under a technology-focused CEO. Interim replacements have been appointed while a search for a new Chairman is underway. This leadership transition is seen as a pivotal moment for RWS as it embarks on executing its growth plan, supported by a newly structured management team and board expertise.

The most recent analyst rating on (GB:RWS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Reports 2025 Financial Results Amid Strategic Transition

RWS Holdings reported a challenging financial year ending September 2025, with a 4% decline in revenue to £690.1m and a reported loss before tax of £99.7m due to lower revenues, gross margins, and foreign exchange headwinds. Despite these challenges, the company saw a significant improvement in profit in the second half of the year and maintained high client retention rates. The company is transitioning to a technology-led, AI-driven growth strategy, focusing on SaaS growth, AI innovations, and efficiency improvements. RWS has also made strategic partnerships and leadership changes to support its new strategy, aiming for future growth and profitability.

The most recent analyst rating on (GB:RWS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Updates Share Capital and Voting Rights

RWS Holdings PLC announced that as of November 30, 2025, its issued share capital consists of 369,807,646 ordinary shares, each carrying one voting right. This update is crucial for shareholders as it provides the denominator needed for calculations related to changes in their shareholding interests under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:RWS) stock is a Hold with a £86.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Updates Total Voting Rights

RWS Holdings PLC has announced that as of October 31, 2025, its issued share capital consists of 369,807,646 ordinary shares, each with a nominal value of 1 pence and one voting right per share. This update 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 Hold with a £86.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

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.