Reliance Worldwide Corporation Limited, together with its subsidiaries, designs, manufactures, and supplies water flow, control, and monitoring products and solutions for residential, commercial, and industrial applications. More Details
No risks detected for RWC from our risk checks.
Excellent balance sheet with acceptable track record.
Share Price & News
How has Reliance Worldwide's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
1 Year Return
Return vs Industry: RWC exceeded the Australian Building industry which returned 52.8% over the past year.
Return vs Market: RWC exceeded the Australian Market which returned 27.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Reliance Worldwide's share price compared to the market and industry in the last 5 years?
Simply Wall St News
14 hours ago | Simply Wall StHere's Why We Think Reliance Worldwide (ASX:RWC) Is Well Worth Watching
1 week ago | Simply Wall StDoes Reliance Worldwide's (ASX:RWC) Share Price Gain of 80% Match Its Business Performance?
Is Reliance Worldwide undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RWC (A$5.67) is trading above our estimate of fair value (A$5.02)
Significantly Below Fair Value: RWC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RWC is poor value based on its PE Ratio (33.9x) compared to the Global Building industry average (17.8x).
PE vs Market: RWC is poor value based on its PE Ratio (33.9x) compared to the Australian market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: RWC is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: RWC is overvalued based on its PB Ratio (3x) compared to the XX Building industry average (1.7x).
How is Reliance Worldwide forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RWC's forecast earnings growth (7.5% per year) is above the savings rate (1.9%).
Earnings vs Market: RWC's earnings (7.5% per year) are forecast to grow slower than the Australian market (13.1% per year).
High Growth Earnings: RWC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RWC's revenue (4.4% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: RWC's revenue (4.4% 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 (14.1%).
How has Reliance Worldwide performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RWC has high quality earnings.
Growing Profit Margin: RWC's current net profit margins (10.6%) are higher than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: RWC's earnings have grown significantly by 30.8% per year over the past 5 years.
Accelerating Growth: RWC's earnings growth over the past year (11.5%) is below its 5-year average (30.8% per year).
Earnings vs Industry: RWC earnings growth over the past year (11.5%) underperformed the Building industry 26.7%.
Return on Equity
High ROE: RWC's Return on Equity (8.8%) is considered low.
How is Reliance Worldwide's financial position?
Financial Position Analysis
Short Term Liabilities: RWC's short term assets (A$558.8M) exceed its short term liabilities (A$222.7M).
Long Term Liabilities: RWC's short term assets (A$558.8M) exceed its long term liabilities (A$416.6M).
Debt to Equity History and Analysis
Debt Level: RWC's debt to equity ratio (17.9%) is considered satisfactory.
Reducing Debt: RWC's debt to equity ratio has increased from 2.3% to 17.9% over the past 5 years.
Debt Coverage: RWC's debt is well covered by operating cash flow (94.7%).
Interest Coverage: RWC's interest payments on its debt are well covered by EBIT (15.9x coverage).
What is Reliance Worldwide current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RWC's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.95%).
High Dividend: RWC's dividend (1.5%) is low compared to the top 25% of dividend payers in the Australian market (4.99%).
Stability and Growth of Payments
Stable Dividend: RWC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RWC's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (76.5%), RWC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RWC's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Heath Sharp serves as Group Managing Director of Reliance Worldwide Corporation Limited and serves as its Group Chief Executive Officer since June 2015. Prior to this, Mr. Sharp served as President of ...
CEO Compensation Analysis
Compensation vs Market: Heath's total compensation ($USD2.51M) is above average for companies of similar size in the Australian market ($USD1.70M).
Compensation vs Earnings: Heath's compensation has been consistent with company performance over the past year.
Experienced Management: RWC's management team is seasoned and experienced (6.2 years average tenure).
Experienced Board: RWC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reliance Worldwide Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: Reliance Worldwide Corporation Limited
- Ticker: RWC
- Exchange: ASX
- Founded: 1949
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: AU$4.464b
- Shares outstanding: 783.18m
- Website: https://www.rwc.com
Number of Employees
- Reliance Worldwide Corporation Limited
- 2300 Defoor Hills Road NW
- United States
Reliance Worldwide Corporation Limited, together with its subsidiaries, designs, manufactures, and supplies water flow, control, and monitoring products and solutions for residential, commercial, and indus...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/03 08:05|
|End of Day Share Price||2021/08/03 00:00|
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.