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

• Market Cap: €1.58B
• Dividend Yield: 5.71%
• Average Volume (3M): 247.20K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.37
• 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: 198,539
• 30 Day Avg. Volume: 247,199
• PEG Ratio: 5.33
• Price to Book (P/B): 7.77
• Price to Sales (P/S): 5.42
• P/FCF Ratio: 17.46
• 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: 41.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: €6.50 ▲(11.11% Upside)

Rai Way S.p.A. presents a strong financial profile with robust profitability and a solid balance sheet. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical analysis indicates potential bearish momentum, which could impact short-term performance.

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

Company Description

Rai Way S.p.A. (RWAY) is an Italian company specializing in the management and maintenance of telecommunications and broadcasting infrastructures. Operating primarily in the broadcasting sector, Rai Way provides essential services related to the transmission of radio and television signals, along with technological solutions for media and telecommunication companies. The company plays a crucial role in the digital transition and development of broadcasting networks in Italy, ensuring high-quality signal distribution and coverage.

How the Company Makes Money

Rai 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 the decline in free cash flow growth needs attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	280.77M	276.10M	271.94M	245.45M	229.94M	224.46M
Gross Profit	231.94M	135.20M	158.90M	194.98M	190.22M	183.88M
EBITDA	185.57M	183.10M	173.77M	150.65M	142.18M	134.65M
Net Income	90.02M	89.90M	86.72M	73.69M	65.38M	64.01M
Balance Sheet
Total Assets	457.39M	462.00M	470.28M	442.60M	388.05M	326.65M
Cash, Cash Equivalents and Short-Term Investments	10.47M	13.50M	34.12M	35.18M	17.24M	4.05M
Total Debt	39.99M	141.10M	139.23M	141.51M	105.63M	50.70M
Total Liabilities	307.19M	269.60M	281.58M	266.44M	222.13M	161.83M
Stockholders Equity	150.20M	192.50M	188.69M	176.16M	165.92M	164.81M
Cash Flow
Free Cash Flow	80.47M	85.70M	89.55M	61.40M	33.40M	55.94M
Operating Cash Flow	128.92M	132.28M	146.95M	136.99M	117.36M	115.99M
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: Negative
• Last Price: 5.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:RWAY, the sentiment is Negative. The current price of 5.85 is below the 20-day moving average (MA) of 5.96, below the 50-day MA of 6.03, and above the 200-day MA of 5.78, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	€3.40B	13.58	15.86%	2.49%	21.15%	17.26%
IP	72 Outperform	€4.70B	21.96	10.96%	0.75%	-4.26%	-9.37%
RWAY	69 Neutral	€1.58B	17.54	60.03%	5.71%	1.94%	1.05%
HER	68 Neutral	€5.79B	11.34	13.98%	3.78%	16.50%	24.03%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
FCT	54 Neutral	€7.03B	54.23	14.30%	―	18.44%	―

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.