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

• Market Cap: €1.58B
• Dividend Yield: 6.01%
• Average Volume (3M): 247.20K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.37
• Revenue Growth: 2.39%
• EPS Growth: 2.88%
• 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: 49.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €5.50 ▼(-1.08% Downside)

Rai Way S.p.A. has a strong financial foundation with robust profitability and low leverage. However, bearish technical indicators and declining free cash flow growth present risks. The attractive dividend yield partially offsets these concerns, but overall, the stock faces challenges in the current market environment.

Positive Factors

Strong Profitability

Strong profitability with healthy margins indicates efficient operations and a solid foundation for sustainable growth.

Low Leverage

Low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Stable Revenue Streams

Long-term contracts provide predictable revenue, supporting financial stability and strategic planning.

Negative Factors

Declining Free Cash Flow Growth

Declining free cash flow growth could impact liquidity and limit the company's ability to fund new initiatives.

Cost Pressures

Cost pressures could erode margins over time, affecting profitability and operational efficiency.

Moderate Reliance on Debt

Moderate reliance on debt could pose risks if interest rates rise or if the company faces revenue challenges.

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 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	145.01M	157.25M	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: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.56 is below the 20-day moving average (MA) of 5.66, below the 50-day MA of 5.87, and below the 200-day MA of 5.79, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 35.44 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 is Neutral, 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
HER	74 Outperform	€5.79B	11.34	13.77%	3.64%	15.98%	19.01%
WBD	73 Outperform	€3.40B	13.58	15.86%	2.40%	21.15%	17.26%
IP	72 Outperform	€4.70B	21.96	10.99%	0.75%	-2.00%	2.11%
RWAY	64 Neutral	€1.58B	17.54	60.03%	6.01%	2.39%	2.88%
FCT	63 Neutral	€7.03B	54.23	14.30%	―	18.44%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

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.