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RWC

Reliance WorldwideASX:RWC Stock Report

Market Cap

AU$3.9b

7D

0.2%

1Y

17.8%

Updated

17 Oct, 2021

Data

Company Financials +
RWC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends3/6

RWC Overview

Reliance Worldwide Corporation Limited, together with its subsidiaries, engages in the design, manufacture, and supply of water flow, control, and monitoring products and solutions for plumbing and heating industries.

Price History & Performance

Summary of all time highs, changes and price drops for Reliance Worldwide
Historical stock prices
Current Share PriceAU$5.03
52 Week HighAU$3.77
52 Week LowAU$6.18
Beta1.05
1 Month Change-8.88%
3 Month Change-3.27%
1 Year Change17.80%
3 Year Change4.14%
5 Year Change67.11%
Change since IPO70.51%

Recent News & Updates

Aug 17
Estimating The Intrinsic Value Of Reliance Worldwide Corporation Limited (ASX:RWC)

Estimating The Intrinsic Value Of Reliance Worldwide Corporation Limited (ASX:RWC)

In this article we are going to estimate the intrinsic value of Reliance Worldwide Corporation Limited ( ASX:RWC ) by...

Aug 02
Here's Why We Think Reliance Worldwide (ASX:RWC) Is Well Worth Watching

Here's Why We Think Reliance Worldwide (ASX:RWC) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jun 07
Returns On Capital Signal Tricky Times Ahead For Reliance Worldwide (ASX:RWC)

Returns On Capital Signal Tricky Times Ahead For Reliance Worldwide (ASX:RWC)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

RWCAU BuildingAU Market
7D0.2%-0.8%0.9%
1Y17.8%35.3%20.2%

Return vs Industry: RWC underperformed the Australian Building industry which returned 35.3% over the past year.

Return vs Market: RWC underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is RWC's price volatile compared to industry and market?
RWC volatility
RWC Beta1.05
Industry Beta1.09
Market Beta1

Stable Share Price: RWC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RWC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19492,257Heath Sharphttps://www.rwc.com

Reliance Worldwide Corporation Limited, together with its subsidiaries, engages in the design, manufacture, and supply of water flow, control, and monitoring products and solutions for plumbing and heating industries. It offers push-to-connect plumbing fittings for the installation and repair of water reticulation systems; crimp fittings, expansion fittings, and accessories; coiled and straight length tubing; polybutylene pipe for domestic water and central heating systems; LLDPE tubing for fluid control applications; and rigid nylon and aluminum piping for air and pneumatic systems. The company also provides temperature and pressure relief, pressure regulation, and thermostatic mixing valves; push-to-connect technologies for drink dispense, pure water, air and pneumatics, blown fiber, automotive, and OEM solutions; and plumbing and mechanical solutions that support the delivery of water and firestop solutions.

Reliance Worldwide Fundamentals Summary

How do Reliance Worldwide's earnings and revenue compare to its market cap?
RWC fundamental statistics
Market CapAU$3.94b
Earnings (TTM)AU$188.25m
Revenue (TTM)AU$1.34b

20.9x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RWC income statement (TTM)
RevenueAU$1.34b
Cost of RevenueAU$750.45m
Gross ProfitAU$590.36m
ExpensesAU$402.12m
EarningsAU$188.25m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin44.03%
Net Profit Margin14.04%
Debt/Equity Ratio12.7%

How did RWC perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

77%

Payout Ratio

Valuation

Is Reliance Worldwide undervalued compared to its fair value and its price relative to the market?

15.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RWC (A$5.03) is trading below our estimate of fair value (A$5.96)

Significantly Below Fair Value: RWC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RWC is poor value based on its PE Ratio (20.9x) compared to the Oceanic Building industry average (19.1x).

PE vs Market: RWC is poor value based on its PE Ratio (20.9x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: RWC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: RWC is overvalued based on its PB Ratio (2.5x) compared to the XO Building industry average (1.6x).


Future Growth

How is Reliance Worldwide forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWC's forecast earnings growth (8% per year) is above the savings rate (1.9%).

Earnings vs Market: RWC's earnings (8% per year) are forecast to grow slower than the Australian market (11.8% per year).

High Growth Earnings: RWC's earnings are forecast to grow, but not significantly.

Revenue vs Market: RWC's revenue (4.1% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: RWC's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RWC's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Reliance Worldwide performed over the past 5 years?

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWC has high quality earnings.

Growing Profit Margin: RWC's current net profit margins (14%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: RWC has become profitable over the past 5 years, growing earnings by 33.7% per year.

Accelerating Growth: RWC's earnings growth over the past year (110.5%) exceeds its 5-year average (33.7% per year).

Earnings vs Industry: RWC earnings growth over the past year (110.5%) exceeded the Building industry 39.4%.


Return on Equity

High ROE: RWC's Return on Equity (11.8%) is considered low.


Financial Health

How is Reliance Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: RWC's short term assets (A$606.4M) exceed its short term liabilities (A$298.8M).

Long Term Liabilities: RWC's short term assets (A$606.4M) exceed its long term liabilities (A$344.0M).


Debt to Equity History and Analysis

Debt Level: RWC's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: RWC's debt to equity ratio has reduced from 97.6% to 12.7% over the past 5 years.

Debt Coverage: RWC's debt is well covered by operating cash flow (135.9%).

Interest Coverage: RWC's interest payments on its debt are well covered by EBIT (24.4x coverage).


Balance Sheet


Dividend

What is Reliance Worldwide current dividend yield, its reliability and sustainability?

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RWC's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: RWC's dividend (2.58%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: RWC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RWC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.3%), RWC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RWC's dividends in 3 years are forecast to be covered by earnings (52.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Heath Sharp

6.33yrs

Tenure

AU$4,882,998

Compensation

Mr. Heath Sharp serves as Group Managing Director of Reliance Worldwide Corporation Limited and serves as its Group Chief Executive Officer since June 2015. Prior to this, Mr. Sharp served as President of...


CEO Compensation Analysis

Compensation vs Market: Heath's total compensation ($USD3.62M) is above average for companies of similar size in the Australian market ($USD1.77M).

Compensation vs Earnings: Heath's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RWC's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: RWC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RWC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Reliance Worldwide Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Reliance Worldwide Corporation Limited
  • Ticker: RWC
  • Exchange: ASX
  • Founded: 1949
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: AU$3.940b
  • Shares outstanding: 783.34m
  • Website: https://www.rwc.com

Number of Employees


Location

  • Reliance Worldwide Corporation Limited
  • 2300 Defoor Hills Road NW
  • Atlanta
  • Georgia
  • 30318
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.