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Reliance Worldwide Corp Ltd RWC

Morningstar Rating
A$4.90 −0.12 (2.39%)
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Company Report

North American Restructure Should Create a Better Business in the Long Run

Reliance Worldwide is a leading plumbing supplies company, producing push-to-connect fittings, pipes, valves, fluid dispensers, appliance connectors, and other specialist plumbing products. Reliance Worldwide manufactures and distributes its plumbing products under the brands including SharkBite, John Guest, HoldRite, EZ-Flo, Eastman, and Cash Acme. Its biggest geographic exposure is in North America which accounts for 60% of earnings, followed by Europe at around 35% and Asia-Pacific at 10%.

Price vs Fair Value

RWC is trading at a 263% premium.
Price
A$5.02
Fair Value
A$8.60
Uncertainty
Medium
1-Star Price
A$4.53
5-Star Price
A$5.58
Economic Moat
Dtjst
Capital Allocation
Vhbddjns

Bulls Say, Bears Say

Bulls

Greater adoption of Reliance push-to-connect fittings underpins market share gains and higher profit margins.

Bears

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

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Trading Information

Previous Close Price
A$5.02
Day Range
A$4.854.97
52-Week Range
A$3.315.90
Bid/Ask
A$4.86 / A$5.00
Market Cap
A$3.87 Bil
Volume/Avg
2.5 Mil / 2.7 Mil

Key Statistics

Price/Earnings (Normalized)
14.33
Price/Sales
2.07
Dividend Yield (Trailing)
2.29%
Dividend Yield (Forward)
2.29%
Total Yield
2.34%

Company Profile

Reliance Worldwide designs, manufactures, and supplies branded plumbing products which are sold across North America, Asia-Pacific, and Europe. The company focuses on push-to-connect plumbing products, including fitting, pipes, and valves, under brands such as SharkBite, JG Speedfit, and EvoPex. Reliance’s products are used in residential and commercial applications for the residential renovation, maintenance, and home improvement end-markets. Reliance sells around 45% of its products to plumbing wholesalers and merchants, 35% to hardware and home improvement retailers (including Home Depot, Lowe's, and Reece) and 20% to original equipment manufacturers of hot water systems.
Sector
Industrials
Industry
Building Products & Equipment
Stock Style Box
Mid Core
Total Number of Employees
2,330

Competitors

Valuation

Metric
RWC
GEBN
REH
Price/Earnings (Normalized)
14.3330.0138.80
Price/Book Value
2.1114.164.55
Price/Sales
2.076.121.87
Price/Cash Flow
9.3223.3117.48
Price/Earnings
RWC
GEBN
REH

Financial Strength

Metric
RWC
GEBN
REH
Quick Ratio
1.240.911.22
Current Ratio
2.991.442.34
Interest Coverage
6.0032.947.33
Quick Ratio
RWC
GEBN
REH

Profitability

Metric
RWC
GEBN
REH
Return on Assets (Normalized)
5.02%17.66%6.72%
Return on Equity (Normalized)
8.57%45.78%12.62%
Return on Invested Capital (Normalized)
7.06%24.19%9.46%
Return on Assets
RWC
GEBN
REH
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