ASX:RWC

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet with solid 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

RWC

0.3%

AU Building

0.7%

AU Market


1 Year Return

-10.0%

RWC

21.2%

AU Building

17.7%

AU Market

Return vs Industry: RWC underperformed the Australian Building industry which returned 21.2% over the past year.

Return vs Market: RWC underperformed the Australian Market which returned 17.7% over the past year.


Shareholder returns

RWCIndustryMarket
7 Day-3.2%0.3%0.7%
30 Day-5.0%4.2%2.0%
90 Day20.7%11.5%4.9%
1 Year-8.0%-10.0%23.7%21.2%24.5%17.7%
3 Year44.1%32.3%17.3%10.6%40.5%21.3%
5 Yearn/a51.5%34.6%57.1%22.1%

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

Valuation

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

23.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RWC (A$3.97) is trading above our estimate of fair value (A$3.11)

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 (23.4x) compared to the Building industry average (16.1x).

PE vs Market: RWC is poor value based on its PE Ratio (23.4x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: RWC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RWC is overvalued based on its PB Ratio (2.2x) compared to the XX Building industry average (1.2x).


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWC's forecast earnings growth (11.8% per year) is above the savings rate (2.3%).

Earnings vs Market: RWC's earnings (11.8% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: RWC's revenue (6.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RWC's revenue (6.8% 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 (11.9%).


Next Steps

Past Performance

How has Reliance Worldwide performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWC has high quality earnings.

Growing Profit Margin: RWC's current net profit margins (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%.


Return on Equity

High ROE: RWC's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reliance Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: RWC's short term assets (A$542.8M) exceeds its short term liabilities (A$143.6M)

Long Term Liabilities: RWC's short term assets (A$542.8M) exceeds its long term liabilities (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).


Balance Sheet

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).


Next Steps

Dividend

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

3.27%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.3%markettop25%5.6%industryaverage2.1%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: RWC's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: RWC's dividend (3.27%) is low compared to the top 25% of dividend payers in the Australian market (5.63%).


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 well covered by earnings (48.8% payout ratio).


Next Steps

Management

What is the CEO of Reliance Worldwide's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Heath Sharp 0

4.4yrs

Tenure

AU$2,907,311

Compensation

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 ($USD1.99M) is above average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: Heath's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: RWC's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

67yo

Average Age

Experienced Board: RWC's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$88,922,14308 Nov 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares20,844,876
Max PriceAU$4.27
BuyAU$78,686,90223 Aug 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares12,653,068
Max PriceAU$6.22
SellAU$74,00215 Aug 19
Paradice Investment Management Pty Ltd.
EntityCompany
Shares20,840
Max PriceAU$3.83
BuyAU$28,280,55015 Aug 19
Paradice Investment Management Pty Ltd.
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Max PriceAU$3.85
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Macquarie Group, Ltd., Banking & Securities Investments
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Max PriceAU$3.56
SellAU$48,37306 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
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Shares13,588
Max PriceAU$3.56
SellAU$60,17806 Aug 19
Macquarie Investment Management Limited
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Shares16,830
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BuyAU$006 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares48,122
Max PriceAU$3.67
SellAU$1106 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
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Shares3
Max PriceAU$3.56
BuyAU$21,09906 Aug 19
Macquarie Investment Management Limited
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Shares5,910
Max PriceAU$3.57
SellAU$002 Aug 19
Macquarie Investment Management Limited
EntityCompany
Shares428,792
Max PriceAU$3.74
BuyAU$002 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares74,907
Max PriceAU$3.78
BuyAU$002 Aug 19
Macquarie Investment Management Limited
EntityCompany
Shares34,954
Max PriceAU$3.73
SellAU$002 Aug 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares18,947
Max PriceAU$3.73
SellAU$002 Aug 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares16,316
Max PriceAU$3.73
SellAU$030 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares210,581
Max PriceAU$3.78
SellAU$030 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares747,479
Max PriceAU$3.77
BuyAU$030 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares295,874
Max PriceAU$3.80
BuyAU$565,68530 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares336,837
Max PriceAU$3.76
SellAU$030 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares14,171
Max PriceAU$3.63
BuyAU$030 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares14,171
Max PriceAU$3.63
BuyAU$60,305,27816 Jul 19
Paradice Investment Management Pty Ltd.
EntityCompany
Shares14,514,021
Max PriceAU$4.15
SellAU$011 Jul 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares264,413
Max PriceAU$4.70
SellAU$011 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares1,424,026
Max PriceAU$4.98
BuyAU$011 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares3,663,462
Max PriceAU$5.03
BuyAU$011 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares3,974,800
Max PriceAU$5.07
BuyAU$011 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares40,204
Max PriceAU$4.98
SellAU$011 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares3,849,749
Max PriceAU$5.04
SellAU$011 Jul 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares40,204
Max PriceAU$4.98
BuyAU$50,859,14109 Jul 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares13,820,420
Max PriceAU$3.68
SellAU$11,34809 Jul 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares3,211
Max PriceAU$3.53
SellAU$10,717,63711 Jun 19
Firetrail Investments Pty Ltd
EntityCompany
Shares3,050,098
Max PriceAU$3.51
BuyAU$9,606,85007 Jun 19
Greencape Capital Pty Ltd
EntityCompany
Shares2,672,334
Max PriceAU$3.59
BuyAU$42,705,02331 May 19
Greencape Capital Pty Ltd
EntityCompany
Shares9,977,517
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SellAU$10,024,78831 May 19
Greencape Capital Pty Ltd
EntityCompany
Shares2,067,315
Max PriceAU$4.85
BuyAU$64,038,06127 May 19
Greencape Capital Pty Ltd
EntityCompany
Shares15,738,112
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Firetrail Investments Pty Ltd
EntityCompany
Shares20,755,300
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SellAU$861,87523 Apr 19
Firetrail Investments Pty Ltd
EntityCompany
Shares185,800
Max PriceAU$4.64
SellAU$005 Mar 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares196,426
Max PriceAU$4.60
SellAU$005 Mar 19
Macquarie Investment Management Limited
EntityCompany
Shares5,068
Max PriceAU$4.56
BuyAU$005 Mar 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares1,715,128
Max PriceAU$4.65
BuyAU$3,229,55605 Mar 19
Macquarie Investment Management Limited
EntityCompany
Shares714,302
Max PriceAU$4.68
BuyAU$40105 Mar 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares88
Max PriceAU$4.56
BuyAU$46,50005 Mar 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares10,000
Max PriceAU$4.65
SellAU$40405 Mar 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares79,015,240
Max PriceAU$4.59
BuyAU$28,695,36703 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares5,514,043
Max PriceAU$5.22
SellAU$1,686,93103 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares347,736
Max PriceAU$4.92
BuyAU$028 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares79,025,053
Max PriceAU$4.93
SellAU$028 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares187,499
Max PriceAU$5.00
SellAU$028 Feb 19
Macquarie Investment Management Limited
EntityCompany
Shares139,908
Max PriceAU$4.98
BuyAU$028 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares560,463
Max PriceAU$5.00
BuyAU$028 Feb 19
Macquarie Investment Management Limited
EntityCompany
Shares57,170
Max PriceAU$5.00
SellAU$200,02828 Feb 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares41,158
Max PriceAU$4.86
SellAU$028 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares9,901
Max PriceAU$4.99
SellAU$367,420,45927 Feb 19
Jonathan Munz
EntityIndividual
Shares79,015,152
Max PriceAU$4.65
SellAU$008 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares59,132
Max PriceAU$4.81
BuyAU$008 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares59,132
Max PriceAU$4.81
SellAU$008 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares2,953,032
Max PriceAU$4.83
SellAU$008 Feb 19
Macquarie Investment Management Limited
EntityCompany
Shares483,895
Max PriceAU$4.81
BuyAU$008 Feb 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares2,573,510
Max PriceAU$4.81
BuyAU$201,97208 Feb 19
Macquarie Investment Management Limited
EntityCompany
Shares68,386
Max PriceAU$4.79
SellAU$75,15108 Feb 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares16,058
Max PriceAU$4.68
SellAU$1,702,39701 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares373,200
Max PriceAU$4.56
BuyAU$67,045,98301 Feb 19
Greencape Capital Pty Ltd
EntityCompany
Shares14,288,792
Max PriceAU$4.69
SellAU$030 Jan 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares7,799,068
Max PriceAU$5.27
SellAU$030 Jan 19
Macquarie Investment Management Limited
EntityCompany
Shares1,509,022
Max PriceAU$5.28
BuyAU$030 Jan 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares5,821,531
Max PriceAU$5.29
BuyAU$030 Jan 19
Macquarie Investment Management Limited
EntityCompany
Shares1,041,121
Max PriceAU$5.25
SellAU$030 Jan 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares30,428
Max PriceAU$5.01
BuyAU$030 Jan 19
Macquarie Group, Ltd., Banking & Securities Investments
EntityCompany
Shares30,428
Max PriceAU$5.01
BuyAU$353,41330 Jan 19
Macquarie Capital Investment Management LLC
EntityCompany
Shares81,058
Max PriceAU$4.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 45.8%.


Management Team

  • Sean McClenaghan

    Chief Executive Officer of USA

    • Tenure: 5.8yrs
  • Gerry Bollman

    Global Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: AU$1.79m
  • Phil King

    Group Investor Relations Director

    • Tenure: 0.5yrs
  • Heath Sharp

    Group CEO

    • Tenure: 4.4yrs
    • Compensation: AU$2.91m
  • Brad Reid

    Chief Executive Officer of Australia and New Zealand

    • Tenure: 12.8yrs
  • David Succurro

    Chief Executive Officer of Canada

    • Tenure: 9.8yrs
  • Bill Kluss

    Chief Manufacturing Officer

    • Tenure: 8.8yrs
  • Dixon Thuston

    Vice President of Stream labs & OEM Sales

    • Tenure: 0yrs
  • David Neufeld

    Company Secretary

    • Tenure: 3.6yrs

Board Members

  • Ross Dobinson (67yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$120.00k
  • William Crosby (62yo)

    Independent Non-Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: AU$120.00k
  • Russell Chenu (67yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$120.00k
  • Christine Bartlett

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Heath Sharp

    Group CEO

    • Tenure: 4.4yrs
    • Compensation: AU$2.91m
  • Sharon McCrohan

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$40.92k

Company Information

Reliance Worldwide Corporation Limited's company bio, 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$3.107b
  • Shares outstanding: 782.70m
  • Website: https://www.rwc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2016
RWCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2016
0EUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2016
RLLW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2016

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:37
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.