Reliance Worldwide Corp Ltd RWC

Morningstar Rating
A$4.74 +0.01 (0.21%)
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Company Report

Price vs Fair Value

RWC is trading at a LOCK|yjT# premium.
Price
A$4.74
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We estimate that about three-fourths of revenue is from the repair, renovation, and improvement category, which is less exposed to cyclicality in the housing market.

Bears

Higher interest rates leading to a protracted downturn in housing activity in all of Reliance’s operating regions could weigh on group earnings.

News

Trading Information

Previous Close Price
A$4.73
Day Range
A$4.72–4.76
52-Week Range
A$2.86–4.76
Bid/Ask
A$4.66 / A$4.75
Shares Outstanding
748.04M
Market Cap
A$3.55B
Volume/Avg
2M / 5M

Key Statistics

Price/Earnings (Normalized)
18.11
Price/Sales
1.87
Dividend Yield (Trailing)
1.40%
Dividend Yield (Forward)
1.40%
Dividend Payment Schedule
Apr
Total Yield
4.00%

Company Profile

Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance’s primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
Sector
Industrials
Industry
Building Products & Equipment
Stock Style Box
Mid Core
Total Number of Employees
2,330

Competitors

Valuation

Metric
RWC
MAS
REH
Price/Earnings (Normalized)
18.1115.2933.19
Price/Book Value
1.90—2.75
Price/Sales
1.871.831.11
Price/Cash Flow
10.9011.6816.14
Price/Earnings
RWC
MAS
REH

Financial Strength

Metric
RWC
MAS
REH
Quick Ratio
0.971.151.00
Current Ratio
2.201.861.98
Interest Coverage
2.4912.984.34
Quick Ratio
RWC
MAS
REH

Profitability

Metric
RWC
MAS
REH
Return on Assets (Normalized)
5.80%17.21%4.14%
Return on Equity (Normalized)
9.25%—8.07%
Return on Invested Capital (Normalized)
8.07%29.57%6.57%
Return on Assets
RWC
MAS
REH

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