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

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IT:RWAY

Rai Way S.p.A.

(LSE:RWAY)

Rating:77Outperform
Price Target:
€7.00
▲(15.89% Upside)
Rai Way S.p.A. scores well due to its strong financial performance and attractive valuation. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The lack of earnings call data and corporate events does not impact the score.

Rai Way S.p.A. (RWAY) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionRai 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 MoneyRai Way generates revenue primarily through the leasing of its transmission infrastructure to various broadcasters, including national and regional television and radio networks. The company's revenue model is largely based on long-term contracts and service agreements with clients who utilize its towers and broadcasting facilities. Key revenue streams include fees for signal distribution services, maintenance and operational support for broadcasting equipment, and consulting services related to network operations. Rai Way also benefits from partnerships with major media companies and telecommunications providers, which contribute to its earnings through collaborative projects and shared infrastructure investments.

Rai Way S.p.A. Financial Statement Overview

Summary
Rai Way S.p.A. demonstrates strong profitability with consistent revenue growth and healthy margins. The balance sheet is solid with low leverage, but a decline in free cash flow growth requires attention.
Income Statement
85
Very Positive
Rai Way S.p.A. demonstrates strong profitability with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.26%. The company maintains healthy margins, with a TTM gross profit margin of 69.86% and a net profit margin of 31.82%. EBIT and EBITDA margins are also robust at 46.87% and 65.82% respectively, indicating efficient operational management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.19 in the TTM period, indicating low leverage and financial risk. The return on equity is impressive at 48.55%, showcasing effective use of shareholder funds. However, the equity ratio of 32.84% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.
Cash Flow
72
Positive
Cash flow analysis shows a decline in free cash flow growth by 6.71% in the TTM period, which could be a concern for future liquidity. Despite this, the operating cash flow to net income ratio of 1.09 and a free cash flow to net income ratio of 0.66 indicate that the company generates sufficient cash to cover its net income. The decline in free cash flow growth needs monitoring to ensure continued financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue280.77M276.10M271.94M245.45M229.94M224.46M
Gross Profit231.94M135.20M158.90M194.98M190.22M183.88M
EBITDA185.57M183.10M173.77M150.65M142.18M134.65M
Net Income90.02M89.90M86.72M73.69M65.38M64.01M
Balance Sheet
Total Assets457.39M462.00M470.28M442.60M388.05M326.65M
Cash, Cash Equivalents and Short-Term Investments10.47M13.50M34.12M35.18M17.24M4.05M
Total Debt39.99M141.10M139.23M141.51M105.63M50.70M
Total Liabilities307.19M269.60M281.58M266.44M222.13M161.83M
Stockholders Equity150.20M192.50M188.69M176.16M165.92M164.81M
Cash Flow
Free Cash Flow80.47M85.70M89.55M61.40M33.40M55.94M
Operating Cash Flow128.92M132.28M146.95M136.99M117.36M115.99M
Investing Cash Flow-49.36M-50.10M-57.36M-75.38M-84.26M-61.35M
Financing Cash Flow-78.44M-102.80M-90.66M-43.67M-19.90M-80.76M

Rai Way S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.04
Price Trends
50DMA
5.98
Positive
100DMA
5.84
Positive
200DMA
5.52
Positive
Market Momentum
MACD
0.03
Negative
RSI
59.14
Neutral
STOCH
53.25
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 6.04 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.98, and above the 200-day MA of 5.52, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 53.25 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€1.62B18.0160.03%5.54%1.94%1.05%
57
Neutral
$1.87B9.438.02%2.45%5.38%-37.86%
€5.99B46.8714.30%
€5.41B10.6813.98%
€4.36B20.4710.96%
€3.97B15.8815.86%
€367.22M20.96
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:RWAY
Rai Way S.p.A.
6.04
1.32
27.83%
GB:0QWN
Fincantieri S.p.A.
19.32
14.28
283.33%
GB:0NVV
HERA S.p.A.
3.70
0.36
10.78%
GB:0EWD
Interpump Group SPA
41.12
2.35
6.06%
GB:0BJP
Webuild SpA
3.91
1.48
60.91%
IT:RWY
Reway Group SpA
9.78
4.18
74.64%

Rai Way S.p.A. Corporate Events

Rai Way Releases Semi-Annual Financial Report for 2025
Aug 1, 2025

Rai Way S.p.A. has published its Semi-Annual Financial Report as of June 30, 2025, along with the Auditor’s Report, making them available at its headquarters and online. This release underscores Rai Way’s commitment to transparency and provides stakeholders with critical financial insights, potentially impacting investor confidence and the company’s market positioning.

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 Revenue Growth and Upward EBITDA Revision for H1 2025
Jul 31, 2025

Rai Way S.p.A. reported a 2.0% increase in core revenues to €140.3 million for the first half of 2025, driven by the expansion of its DAB network and new commercial agreements in the CDN space. The company revised its Adjusted EBITDA guidance upwards due to favorable energy tariffs and non-core benefits, while continuing to explore sector consolidation opportunities and enhance its data center infrastructure.

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 Publishes Shareholders’ Meeting Minutes
May 29, 2025

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
May 15, 2025

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
May 14, 2025

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.

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: Aug 20, 2025