Rai Way S.p.A. (RWAY) AI Stock Analysis

• Market Cap: €1.61B
• Dividend Yield: 4.83%
• Average Volume (3M): 255.73K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.35
• Revenue Growth: 1.55%
• EPS Growth: 1.54%
• Country: IT
• Employees: 600
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.08
• Shares Outstanding: 272,000,000
• 10 Day Avg. Volume: 212,823
• 30 Day Avg. Volume: 255,732
• PEG Ratio: 1.60
• Price to Book (P/B): 8.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.97
• 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: €8.30
• Price Target Upside: 37.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ―

Rai Way S.p.A. demonstrates strong financial performance with robust profitability and efficient cash flow management, standing out in the Media & Entertainment industry. The technical analysis indicates positive momentum, though caution is advised due to nearing overbought levels. Valuation metrics are attractive with a reasonable P/E ratio and a high dividend yield, contributing to a solid overall stock score.

Rai Way S.p.A. Business Overview & Revenue Model

Company Description

Rai Way S.p.A. owns and manages television and radio transmission and broadcasting networks in Italy. The company provides terrestrial and satellite transmission of television and radio signals through the network infrastructure, as well as through radio links, satellite, and fiber optic networks. It also offers tower rental services, which include hosting of third party transmission and broadcasting equipment; management and maintenance services; and other complementary services. In addition, the company provides network services that include heterogeneous services; digital broadcasting networks; transmission networks and management systems; DTT, multimedia communications, and value added services; project management, organization, and processes; and maintenance of transmission network services. It primarily serves broadcasters, telecommunications operators, public administrations, and corporates. The company was incorporated in 1999 and is based in Rome, Italy. Rai Way S.p.A. is a subsidiary of Rai Radiotelevisione italiana S.p.A.

How the Company Makes Money

Rai Way makes money primarily through the leasing of its extensive network infrastructure to broadcasters and telecom operators. This includes terrestrial broadcasting towers and satellite transmission facilities which are critical for the distribution of television and radio content. The company generates revenue through long-term contracts with RAI and other clients who pay for access to its infrastructure and related services. Additionally, Rai Way may engage in partnerships with other telecommunications companies to expand its service offerings and improve its network capabilities, contributing further to its earnings.

Rai Way S.p.A. Financial Statement Overview

Summary

Overall, Rai Way S.p.A. exhibits strong financial health with consistent revenue growth, robust profitability margins, and efficient cash flow management. The balance sheet indicates a well-managed leverage position with effective use of equity. While there has been a slight decline in free cash flow, the company's overall financial trajectory remains positive, making it well-positioned within the Media & Entertainment industry.

Income Statement

Rai Way S.p.A. has demonstrated a consistent revenue growth with a TTM revenue increase of 2.03% compared to the previous year. The gross profit margin is robust at 57.76%, and the net profit margin is healthy at 32.42%, indicating strong profitability. The EBIT and EBITDA margins are also strong at 47.53% and 66.07%, respectively, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.73, indicating balanced leverage. With a return on equity of 46.73%, the company is effectively utilizing shareholder investments to generate profits. The equity ratio of 41.67% suggests a stable financial structure with a good portion of assets funded by equity.

Cash Flow

Rai Way S.p.A. has shown strong cash flow management with a free cash flow to net income ratio of 0.92, indicating that a significant portion of its earnings is converted into cash. The operating cash flow to net income ratio stands at 1.42, suggesting efficient cash generation relative to its net income. The free cash flow growth rate is slightly negative, reflecting a minor decrease compared to the previous year.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	276.10M	271.94M	245.45M	229.94M	224.46M
Gross Profit	135.20M	158.90M	194.98M	190.22M	183.88M
EBITDA	183.10M	173.77M	150.65M	142.18M	134.65M
Net Income	89.90M	86.72M	73.69M	65.38M	64.01M
Balance Sheet
Total Assets	462.00M	470.28M	442.60M	388.05M	326.65M
Cash, Cash Equivalents and Short-Term Investments	13.50M	34.12M	35.18M	17.24M	4.05M
Total Debt	141.10M	139.23M	141.51M	105.63M	50.70M
Total Liabilities	269.60M	281.58M	266.44M	222.13M	161.83M
Stockholders Equity	192.50M	188.69M	176.16M	165.92M	164.81M
Cash Flow
Free Cash Flow	85.70M	89.55M	61.40M	33.40M	55.94M
Operating Cash Flow	127.60M	146.95M	136.99M	117.36M	115.99M
Investing Cash Flow	-50.10M	-57.36M	-75.38M	-84.26M	-61.35M
Financing Cash Flow	-98.10M	-90.66M	-43.67M	-19.90M	-80.76M

Rai Way S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RWAY, the sentiment is Positive. The current price of 6.03 is above the 20-day moving average (MA) of 5.93, above the 50-day MA of 5.81, and above the 200-day MA of 5.31, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:RWAY.

Rai Way S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RWAY	78 Outperform	€1.61B	18.21	41.47%	4.83%	1.55%	1.54%
Sector *	67 Neutral	€2.71B	15.68	9.89%	2.85%	-0.64%	-28.31%
0QWN		€4.64B	―		―	―	―
0NVV		€5.88B	11.50	13.57%	3.73%	―	―
0EWD		€3.68B	16.84	11.06%	0.83%	―	―
0BJP		€3.46B	17.51	11.69%	2.03%	―	―
RWY		€336.93M	19.08		―	―	―

Rai Way S.p.A. Corporate Events

Rai Way Publishes Shareholders’ Meeting Minutes

Rai Way S.p.A. has announced the publication of the minutes from its Ordinary Shareholders’ Meeting held on April 30, 2025. These minutes are now accessible to the public at the company’s headquarters, on its website, and through an authorized storage mechanism. This publication underscores Rai Way’s commitment to transparency and governance, potentially reinforcing stakeholder trust and engagement.

The most recent analyst rating on (IT:RWAY) stock is a Buy with a EUR8.50 price target. To see the full list of analyst forecasts on Rai Way S.p.A. stock, see the IT:RWAY Stock Forecast page.

Rai Way Releases Interim Financial Statement for Public Consultation

Rai Way S.p.A. has announced the availability of its Interim Financial Statement as of 31 March 2025 for public consultation. This announcement underscores Rai Way’s commitment to transparency and provides stakeholders with insights into its financial performance, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (IT:RWAY) stock is a Buy with a EUR8.50 price target. To see the full list of analyst forecasts on Rai Way S.p.A. stock, see the IT:RWAY Stock Forecast page.

Rai Way Reports Steady Q1 2025 Results Amid Strategic Expansion

Rai Way S.p.A. reported its first quarter 2025 results with core revenues increasing by 1.7% to €70 million, driven by inflation-indexed contracts and growth in digital infrastructures. Despite a slight decline in operating profit and net profit due to increased amortization from investment activities, the company maintained strong cash generation and reduced net debt. The company finalized a contract with RAI for the DAB network extension and continued its diversification efforts in CDN and data centers, aligning with its Industrial Plan.

The most recent analyst rating on (IT:RWAY) stock is a Buy with a EUR8.50 price target. To see the full list of analyst forecasts on Rai Way S.p.A. stock, see the IT:RWAY Stock Forecast page.

Rai Way S.p.A. Announces 2024 Financial Results and Dividend Allocation

Rai Way S.p.A. has announced the approval of its financial statements for 2024 and the allocation of a dividend of Euro 0.3340 per ordinary share, payable from May 21, 2025. This decision reflects the company’s commitment to returning value to its shareholders and maintaining a stable financial position. The announcement is significant for stakeholders as it underscores Rai Way’s continued focus on shareholder value and financial stability.

Rai Way S.p.A. Relocates Registered Office in Rome

Rai Way S.p.A. has announced the relocation of its registered office in Rome from via Teulada no. 66 to Viale Castrense no. 9, effective April 23, 2025. This move is part of the company’s ongoing efforts to streamline its operations and maintain its position as a leading provider of media content distribution services in Italy.

Rai Way Publishes 2024 Financial and Governance Reports

Rai Way S.p.A. has published its 2024 Annual Financial Report and other related documents, making them available to the public. This release includes financial statements, corporate governance reports, and remuneration policies, reflecting the company’s commitment to transparency and regulatory compliance.

Rai Way S.p.A. Releases 2024 Annual Financial Report

Rai Way S.p.A. has released its Annual Financial Report for the fiscal year 2024, which includes comprehensive documentation such as the draft financial statements, Directors’ Report, Sustainability Report, and various governance and remuneration reports. This release provides stakeholders with detailed insights into the company’s financial health, governance practices, and strategic direction, reinforcing transparency and accountability in its operations.

Rai Way Corrects Shareholder Meeting Notice Due to Clerical Error

Rai Way S.p.A. announced a correction to the Notice of Call for the Ordinary Shareholders’ Meeting scheduled for April 30, 2025, due to a clerical error in the number of treasury shares held by the company. This correction affects the proposed allocation of profits and the percentage of treasury shares relative to the share capital, impacting the company’s financial disclosures and shareholder communications.

Rai Way S.p.A. Announces 2025 Shareholders’ Meeting to Discuss Key Financial and Governance Matters

Rai Way S.p.A. has announced the convening of its Ordinary Shareholders’ Meeting on April 30, 2025, to discuss key agenda items such as the financial statements for 2024, profit allocation, remuneration policy, and the authorization for the purchase and disposal of treasury shares. The meeting will be conducted through a designated representative, Computershare S.p.A., ensuring streamlined participation and voting processes. This meeting is significant for stakeholders as it addresses crucial financial and governance aspects, potentially impacting the company’s strategic direction and shareholder value.

Rai Way S.p.A. Announces Ordinary Shareholders’ Meeting for April 2025

Rai Way S.p.A. has announced an ordinary shareholders’ meeting scheduled for April 30, 2025, to discuss several key agenda items, including the approval of financial statements for 2024, profit allocation, remuneration policy, and authorization to purchase and dispose of treasury shares. The meeting will be conducted exclusively through a designated representative, Computershare S.p.A., and shareholders are encouraged to participate by submitting proxies. This meeting is crucial for determining financial strategies and governance policies that could impact the company’s operations and shareholder value.