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.
Solid track record with excellent balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RWC underperformed the Australian Building industry which returned 20.7% over the past year.
Return vs Market: RWC underperformed the Australian Market which returned 14.6% over the past year.
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
4 days ago | Simply Wall StDon't Sell Reliance Worldwide Corporation Limited (ASX:RWC) Before You Read This
2 weeks ago | Simply Wall StEstimating The Fair Value Of Reliance Worldwide Corporation Limited (ASX:RWC)
3 weeks ago | Simply Wall StWe Wouldn't Rely On Reliance Worldwide's (ASX:RWC) Statutory Earnings As A Guide
Is Reliance Worldwide undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RWC (A$3.42) is trading below our estimate of fair value (A$4)
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 (20.2x) compared to the Building industry average (16.2x).
PE vs Market: RWC is poor value based on its PE Ratio (20.2x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: RWC is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: RWC is overvalued based on its PB Ratio (1.9x) compared to the XX Building industry average (1.2x).
How is Reliance Worldwide forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RWC's forecast earnings growth (11.9% per year) is above the savings rate (1.1%).
Earnings vs Market: RWC's earnings (11.9% per year) are forecast to grow faster than the Australian market (9.3% per year).
High Growth Earnings: RWC's earnings are forecast to grow, but not significantly.
Revenue vs Market: RWC's revenue (5.3% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: RWC's revenue (5.3% 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 (11.5%).
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 (12%) are higher than last year (8.6%).
Past Earnings Growth Analysis
Earnings Trend: RWC's earnings have grown significantly by 31.7% per year over the past 5 years.
Accelerating Growth: RWC's earnings growth over the past year (101.6%) exceeds its 5-year average (31.7% per year).
Earnings vs Industry: RWC earnings growth over the past year (101.6%) exceeded the Building industry 4.6%.
Return on Equity
High ROE: RWC's Return on Equity (9.5%) is considered low.
Return on Assets
Return on Capital Employed
How is Reliance Worldwide's financial position?
Financial Position Analysis
Short Term Liabilities: RWC's short term assets (A$542.8M) exceed its short term liabilities (A$143.6M).
Long Term Liabilities: RWC's short term assets (A$542.8M) exceed its long term liabilities (A$526.3M).
Debt to Equity History and Analysis
Debt Level: RWC's debt to equity ratio (35.3%) is considered satisfactory.
Reducing Debt: RWC's debt to equity ratio has increased from 9.8% to 35.3% over the past 5 years.
Debt Coverage: RWC's debt is well covered by operating cash flow (27.4%).
Interest Coverage: RWC's interest payments on its debt are well covered by EBIT (8.9x coverage).
Inventory Level: RWC has a high level of physical assets or inventory.
Debt Coverage by Assets: RWC's debt is covered by short term assets (assets are 1.1x debt).
What is Reliance Worldwide's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RWC's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: RWC's dividend (3.8%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RWC has been paying a dividend for less than 10 years.
Growing Dividend: RWC's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69%), RWC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RWC's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Heath Sharp 0
Mr. Heath Sharp serves as Managing Director of Reliance Worldwide Corporation Limited and serves as its Chief Executive Officer since June 2015. Prior to this, Mr. Sharp served as President of the USA busi ...
CEO Compensation Analysis
Compensation vs Market: Heath's total compensation ($USD1.99M) is about average for companies of similar size in the Australian market ($USD2.22M).
Compensation vs Earnings: Heath's compensation has been consistent with company performance over the past year.
|Group CEO||4.7yrs||AU$3.01m||0.15% A$4.1m|
|Global Chief Financial Officer||3.2yrs||AU$2.00m||no data|
|Group Investor Relations Director||0.8yrs||no data||no data|
|Vice President of Stream labs & OEM Sales||0yrs||no data||no data|
|Chief Manufacturing Officer||9.1yrs||no data||no data|
|Chief Executive Officer of USA||6.1yrs||no data||no data|
|Chief Executive Officer of Australia and New Zealand||13.1yrs||no data||no data|
|Chief Executive Officer of Canada||10.1yrs||no data||no data|
|Company Secretary||3.8yrs||no data||no data|
Experienced Management: RWC's management team is seasoned and experienced (5.4 years average tenure).
|Group CEO||4.7yrs||AU$3.01m||0.15% A$4.1m|
|Independent Non-Executive Director||3.8yrs||AU$130.00k||0.0042% A$111.1k|
|Independent Non-Executive Chairman||0.9yrs||AU$204.08k||0.019% A$514.8k|
|Independent Non-Executive Director||3.8yrs||AU$120.00k||0.020% A$530.8k|
|Independent Non-Executive Director||0.3yrs||no data||0.0026% A$68.5k|
|Independent Non-Executive Director||2yrs||AU$130.00k||no data|
Experienced Board: RWC's board of directors are not considered experienced ( 2.9 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 been diluted in the past year, with total shares outstanding growing by 45.8%.
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$2.677b
- Shares outstanding: 782.70m
- Website: https://www.rwc.com
Number of Employees
- Reliance Worldwide Corporation Limited
- 2300 Defoor Hills Road NW
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RWC||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Apr 2016|
|RWC||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Apr 2016|
|0EU||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Apr 2016|
|RLLW.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Apr 2016|
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. It offers fittings and pipes, including plumbing fittings, piping, and related products for the installation and repair of water reticulation systems; pipe support systems; and firestop solutions. The company also provides control valves, such as temperature and pressure relief valves for domestic and commercial storage hot water systems; non-return isolating valves; pressure regulation valves; backflow prevention devices; and specialist water safety valves. In addition, it offers thermostatic products comprising a range of thermostatic mixing valves, tempering valves, and thermostatic cartridges; and other products, which include underfloor heating components and kit systems, and water meters, including pneumatic and hydraulic fittings, water mains connection fittings, and repair sleeves and fire safety system products. The company provides its products under the SharkBite, JG Speedfit, HoldRite, CashAcme, Reliance Valves, StreamLabs, and John Guest brands. It has operations in Australia, New Zealand, Korea, China, the United States, Canada, the United Kingdom, Spain, Italy, Germany, France, the Czech Republic, and Poland. Reliance Worldwide Corporation Limited was founded in 1949 and is headquartered in Atlanta, Georgia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 10:57|
|End of Day Share Price||2020/02/25 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.