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

• Market Cap: €1.59B
• Dividend Yield: 5.66%
• Average Volume (3M): 162.28K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.35
• Revenue Growth: 1.94%
• EPS Growth: 1.05%
• Country: IT
• Employees: 600
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.09
• Shares Outstanding: 272,000,000
• 10 Day Avg. Volume: 138,660
• 30 Day Avg. Volume: 162,280
• PEG Ratio: N/A
• 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: €8.30
• Price Target Upside: 40.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: €6.50 ▲(10.17% Upside)

Rai Way S.p.A.'s overall stock score reflects strong financial performance and positive technical indicators as the main drivers. The company's robust profitability, solid balance sheet, and attractive dividend yield contribute significantly to the score. While technical analysis supports a bullish outlook, the lack of earnings call data and corporate events limits additional insights.

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

Company Description

Rai Way S.p.A. (RWAY) is an Italian company that operates in the telecommunications and broadcasting infrastructure sector. It specializes in providing network services for the distribution of television and radio signals, as well as offering a wide range of solutions for managing and supporting communication networks. Rai Way owns and operates a significant portfolio of transmission sites across Italy, ensuring extensive coverage and reliable service for its clients.

How the Company Makes Money

Rai Way S.p.A. generates revenue primarily through the leasing of its transmission infrastructure to broadcasters, telecommunication operators, and other enterprises requiring reliable signal distribution networks. The company earns income by providing access to its extensive network of towers and transmission sites, which are integral for the dissemination of television and radio content across Italy. Additionally, Rai Way offers managed services and supports the installation and maintenance of broadcast and telecommunications infrastructure, contributing to its revenue streams. The company's earnings are significantly bolstered by long-term contracts with RAI, the national public broadcasting company of Italy, which is both a major client and shareholder.

Rai Way S.p.A. Financial Statement Overview

Summary

Rai Way S.p.A. demonstrates strong financial performance with robust income statement metrics, including high gross and net profit margins, prudent leverage management on the balance sheet, and consistent positive cash flow generation. These factors collectively position the company well for continued success.

Income Statement

Rai Way S.p.A. demonstrates strong income statement metrics, with consistent revenue growth and robust profitability margins. The TTM data shows a gross profit margin of 69.84% and a net profit margin of 31.81%, both indicative of efficient cost management and pricing power. The revenue growth rate from 2024 to TTM is modest at 0.94%, but the company has maintained impressive EBIT and EBITDA margins over the years. These aspects highlight the company's ability to generate substantial profits from its operations.

Balance Sheet

The balance sheet of Rai Way S.p.A. displays a stable financial position with a debt-to-equity ratio of 0.19 in TTM, showcasing prudent leverage management. The equity ratio stands at 44.29%, reflecting a solid equity base relative to total assets. However, the return on equity (ROE) is 41.22%, indicating efficient use of shareholder funds to generate profits. While the company maintains a healthy balance sheet, potential risks include fluctuations in equity ratios over time.

Cash Flow

Rai Way S.p.A.'s cash flow performance is robust, with operating cash flow exceeding net income, yielding an operating cash flow to net income ratio of 1.46 in TTM. The free cash flow growth rate from 2024 to TTM is a modest 0.65%, but the company consistently generates positive free cash flow, allowing for reinvestment and debt servicing. Despite the modest free cash flow growth, the company's cash flow generation capability is strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.68M	276.10M	271.94M	245.45M	229.94M	224.46M
Gross Profit	194.68M	135.20M	158.90M	194.98M	190.22M	183.88M
EBITDA	183.43M	183.10M	173.77M	150.65M	142.18M	134.65M
Net Income	88.67M	89.90M	86.72M	73.69M	65.38M	64.01M
Balance Sheet
Total Assets	485.72M	462.00M	470.28M	442.60M	388.05M	326.65M
Cash, Cash Equivalents and Short-Term Investments	27.50M	13.50M	34.12M	35.18M	17.24M	4.05M
Total Debt	41.05M	141.10M	139.23M	141.51M	105.63M	50.70M
Total Liabilities	270.64M	269.60M	281.58M	266.44M	222.13M	161.83M
Stockholders Equity	215.08M	192.50M	188.69M	176.16M	165.92M	164.81M
Cash Flow
Free Cash Flow	86.26M	85.70M	89.55M	61.40M	33.40M	55.94M
Operating Cash Flow	129.84M	127.60M	146.95M	136.99M	117.36M	115.99M
Investing Cash Flow	-48.83M	-50.10M	-57.36M	-75.38M	-84.26M	-61.35M
Financing Cash Flow	-105.60M	-102.80M	-90.66M	-43.67M	-19.90M	-80.76M

Rai Way S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.90
• 50DMA: Negative
• 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 IT:RWAY, the sentiment is Neutral. The current price of 5.9 is below the 20-day moving average (MA) of 5.92, below the 50-day MA of 5.95, and above the 200-day MA of 5.45, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
WBD	78 Outperform	€4.11B	16.42	15.86%	1.94%	25.89%	15.48%
RWAY	76 Outperform	€1.59B	17.66	60.03%	5.66%	1.94%	1.05%
IP	76 Outperform	€3.97B	18.38	11.06%	0.82%	-6.36%	-15.46%
HER	67 Neutral	€5.53B	10.85	13.98%	3.98%	16.50%	23.92%
Sector *	66 Neutral	€3.93B	16.52	-4.02%	4.38%	2.15%	-15.30%
FCT	66 Neutral	€5.65B	43.57	14.30%	―	18.45%	―

Rai Way S.p.A. Corporate Events

Rai Way Releases Semi-Annual Financial Report for 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

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

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.