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

• Market Cap: €1.63B
• Dividend Yield: 6.03%
• Average Volume (3M): 247.20K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.26
• Revenue Growth: 2.39%
• EPS Growth: 2.88%
• Country: IT
• Employees: 600
• Sector: Industrials
• Sector Strength: 72
• 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: €7.00
• Price Target Upside: 15.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): €294.02M

• Rating: 70 Outperform
• Price Target: €6.00 ▼(-1.32% Downside)
• Action: Upgraded Date: 12/18/25
• Date: Action: Upgraded 12/18/25

Rai Way S.p.A.'s strong financial performance and attractive dividend yield are significant strengths, supporting a solid stock score. However, weak technical indicators and bearish momentum weigh down the overall score.

Positive Factors

Revenue Growth

Rai Way's impressive revenue growth of 69.9% in the TTM period indicates robust expansion and a strong market position, supporting long-term business sustainability.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, enhancing Rai Way's ability to invest in growth and withstand competitive pressures.

Cash Flow Generation

Efficient cash generation supports Rai Way's financial stability, enabling reinvestment in infrastructure and strategic initiatives for sustained growth.

Negative Factors

Rising Debt Levels

Rising debt levels could strain Rai Way's financial flexibility, potentially impacting its ability to fund future growth and manage economic downturns.

Leverage Concerns

While leverage is manageable, the moderate debt-to-equity ratio suggests a need for careful debt management to maintain balance sheet strength.

Technical Weakness

Persistent technical weakness may reflect underlying market concerns, potentially affecting investor confidence and long-term stock performance.

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 generates revenue primarily through the provision of transmission services to television and radio broadcasters, which constitutes a significant portion of its income. The company charges fees for the use of its extensive network infrastructure, which includes transmission towers and broadcast equipment. Additionally, Rai Way engages in long-term contracts with major broadcasters, securing a stable revenue stream. The company also earns revenue from ancillary services such as consultancy and maintenance, which enhance its offerings. Strategic partnerships with media companies and collaborations in the telecommunications sector further bolster its revenue, allowing Rai Way to expand its service capabilities and reach.

Rai Way S.p.A. Financial Statement Overview

Summary

Rai Way S.p.A. demonstrates strong financial performance with robust revenue growth, high profitability margins, and efficient cash flow generation. The company maintains a stable balance sheet with manageable leverage, although rising debt levels warrant monitoring.

Income Statement

Rai Way S.p.A. demonstrates strong profitability with a high gross profit margin of 82.61% and a net profit margin of 32.06% in the TTM period. The company has shown impressive revenue growth of 69.9% in the TTM period, indicating robust expansion. EBIT and EBITDA margins are also strong at 47.15% and 66.09%, respectively, reflecting efficient operations. Overall, the income statement reflects a healthy financial performance with significant growth and profitability.

Balance Sheet

The balance sheet of Rai Way S.p.A. shows a moderate debt-to-equity ratio of 0.97 in the TTM period, suggesting manageable leverage. The return on equity is strong at 49.26%, indicating effective use of equity to generate profits. The equity ratio is 38.32%, reflecting a solid equity base. While the company maintains a stable financial position, the increase in debt levels over the periods warrants monitoring.

Cash Flow

Rai Way S.p.A. exhibits a healthy cash flow position with a free cash flow growth rate of 15.77% in the TTM period. The operating cash flow to net income ratio is 0.84, and the free cash flow to net income ratio is 0.62, indicating efficient cash generation relative to earnings. The positive growth in free cash flow highlights the company's ability to generate cash, supporting its financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.73M	276.10M	271.94M	245.45M	229.94M	224.46M
Gross Profit	241.36M	135.20M	158.90M	194.98M	190.22M	183.88M
EBITDA	185.62M	183.10M	173.77M	150.65M	142.18M	134.65M
Net Income	90.03M	89.90M	86.72M	73.69M	65.38M	64.01M
Balance Sheet
Total Assets	453.82M	462.00M	470.28M	442.60M	388.05M	326.65M
Cash, Cash Equivalents and Short-Term Investments	4.13M	13.50M	34.12M	35.18M	17.24M	4.05M
Total Debt	185.44M	157.25M	139.23M	141.51M	105.63M	50.70M
Total Liabilities	279.95M	269.60M	281.58M	266.44M	222.13M	161.83M
Stockholders Equity	173.86M	192.50M	188.69M	176.16M	165.92M	164.81M
Cash Flow
Free Cash Flow	93.16M	85.70M	89.55M	61.40M	33.40M	55.94M
Operating Cash Flow	141.17M	132.28M	146.95M	136.99M	117.36M	115.99M
Investing Cash Flow	-49.31M	-50.10M	-57.36M	-75.38M	-84.26M	-61.35M
Financing Cash Flow	-104.24M	-102.80M	-90.66M	-43.67M	-19.90M	-80.76M

Rai Way S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.08
• 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 IT:RWAY, the sentiment is Positive. The current price of 6.08 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 5.72, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 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
WBD	73 Outperform	€3.20B	7.65	15.86%	2.32%	21.15%	17.26%
RWAY	70 Outperform	€1.63B	17.32	60.03%	6.03%	2.39%	2.88%
IP	69 Neutral	€3.89B	23.93	10.99%	0.72%	-2.00%	2.11%
FCT	66 Neutral	€4.49B	71.84	14.30%	―	18.44%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HER	62 Neutral	€6.10B	21.49	13.77%	3.76%	15.98%	19.01%

Rai Way S.p.A. Corporate Events

Rai Way Releases Interim Management Report for September 2025

Rai Way S.p.A. has published its Interim Management Report as of September 30, 2025, making it available to the public through various channels, including its website. This publication highlights the company’s ongoing commitment to transparency and provides stakeholders with insights into its operational performance and strategic direction.

The most recent analyst rating on (IT:RWAY) stock is a Hold with a EUR6.50 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 Growth and Confirms 2025 Guidance

Rai Way reported a 2.3% increase in core revenues for the first nine months of 2025, driven by the expansion of RAI’s DAB radio networks and diversification initiatives. Despite a slight decline in operating profit, the company maintained a steady growth trajectory, confirming its guidance for the year. The company is actively working on growth initiatives, including the extension of the DAB network and marketing new assets, while addressing delays in photovoltaic park authorizations.

The most recent analyst rating on (IT:RWAY) stock is a Hold with a EUR6.50 price target. To see the full list of analyst forecasts on Rai Way S.p.A. stock, see the IT:RWAY Stock Forecast page.