# Reliance Worldwide (RWC.AU)

Canonical: https://gigainvestors.com/s/RWC.AU

Analysis as of: 2026-10-16T07:40:02.220Z. Financial observations: FY2013–FY2026.

Listing currency: AUD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 4.72 per share; close as of 2026-10-15.

Estimated value: low AUD 4.18 per share, central AUD 5.97 per share, high AUD 7.01 per share. Buy at or below the central value AUD 5.97 per share. Valuation as of 2026-10-16T07:40:02.220Z; scenarios are not confidence intervals.

Expected annual return: 11.8% at the stated quote. About 11.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.14×

- FY2019: 0.18×

- FY2020: 0.16×

- FY2021: 0.21×

- FY2022: 0.14×

- FY2023: 0.12×

- FY2024: 0.15×

- FY2025: 0.10×

- FY2026: 0.12×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 4.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 13.0%

- ROIC, second-lowest year: 10.7%

- Typical minus recent gross margin: 4.9 pp

- Typical gross margin (annual median): 40.2%

- Recent gross margin (lower of latest and 3-year median): 35.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 21.1%

- FY2018: 12.6%

- FY2019: 22.9%

- FY2020: 15.3%

- FY2021: 24.8%

- FY2022: 10.7%

- FY2023: 11.3%

- FY2024: 13.4%

- FY2025: 10.1%

- FY2026: 12.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.29×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $668M

- Net income, five-year total: $519M

- Return on incremental invested capital: 81.6%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 6.4 pp

- Working capital / revenue, final three-year average: 35.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.03×

- FY2023: 1.26×

- FY2024: 1.17×

- FY2025: 1.29×

- FY2026: 9.50×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 21.1% vs 12.1%

- Per-share earnings: 0.08 to 0.14 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: $299M

- Cumulative retained earnings: -$409M

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.8%

- Per-share value change: $0.06

- Per-share value, starting three-year median: $0.08

- Per-share value, ending three-year median: $0.14

- Buybacks concentrated in cheaper years (correlation): -0.60

- Average buyback yield: 0.8%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $1.4B

- Cumulative net income, 10 years: $1.0B

- ROIC, first three-year median: 21.1%

- ROIC, last three-year median: 12.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.08

- FY2018: $0.08

- FY2019: $0.17

- FY2020: $0.08

- FY2021: $0.24

- FY2022: $0.17

- FY2023: $0.18

- FY2024: $0.14

- FY2025: $0.16

- FY2026: $0.01

### accounting: pass

- Sloan accruals: -10.9%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 36.18×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.86×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.3%

- FY2018: -0.9%

- FY2019: 1.3%

- FY2020: -11.8%

- FY2021: -1.0%

- FY2022: 2.3%

- FY2023: -5.4%

- FY2024: -7.7%

- FY2025: -4.9%

- FY2026: -10.9%

## Holders

## Price story

Down 25% since Dec 2021 · "Australia's Reliance Worldwide warns of Americas sales pressure, tariffs' cost impact" (ca.finance.yahoo.com, May 2025) · sales +1.4%

Story as of 2026-10-16T10:00:11.112Z; price observation 2026-10-15.

Price needs cash profits to grow 3.5% a year for ten years

- 2025-05-05: Australia's Reliance Worldwide warns of Americas sales pressure, tariffs' cost impact ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/australias-reliance-worldwide-warns-americas-031846053.html))

### Sales · FY2025–2026

sales +1.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: $602M 

- FY2018: $769M 

- FY2019: $1.1B 

- FY2020: $1.2B 

- FY2021: $1.3B 

- FY2022: $1.2B 

- FY2023: $1.2B 

- FY2024: $1.2B 

- FY2025: $1.3B 

- FY2026: $1.3B 

### Gross margin · FY2026

gross margin 35.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 41.9% 

- FY2018: 41.2% 

- FY2019: 42.2% 

- FY2020: 41.1% 

- FY2021: 44.0% 

- FY2022: 39.3% 

- FY2023: 38.4% 

- FY2024: 39.2% 

- FY2025: 38.9% 

- FY2026: 35.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 1.3 billion.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2026-06-30 (filed 2026-10-16T07:40:02.220Z); FY2026: revenue 1332900257; grossProfit 469605988; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RWC.AU: Reliance Worldwide Corporation Limited, together with its subsidiaries, engages in the design, manufacture, and supply of water flow, and control and monitoring products and solutions for the plumbing and heating industries. It provides PEX press system that offers push, press, expansion, crimp, and clamp technologies; push to connect fittings, valves, and tubing; brackets; and controls and connection accessories. The company also offers plumbing and heating fittings, valves, pipes, and underfloor heating solutions; equipment support and water heater accessories; drain waste and vent (DWV) products; secondary pipe supports, acoustic noise, and vibration plumbing solutions; sleeving and firestop systems; water pressure, temperature, and thermostatic mixing valves; leak detector control valve; and push-to-connect technologies for drinks dispense, pure water, air and pneumatics, blown fibre, automotive, and OEM solutions. It sells its products under the SharkBite, JG Speedfit, Cash Acme, Reliance Valves, HoldRite, John Guest, and Holman brand names. The company distributes its products through retail, hardware, wholesale, and original equipment manufacturers. It operates in the United States, Canada, Mexico, Australia, New Zealand, Korea, China, the United Kingdom, Germany, Spain, Italy, Poland, France, and the Czech Republic. Reliance Worldwide Corporation Limited was founded in 1949 and is based in Atlanta, Georgia.

### Why customers stay

Margins ranged from 35.2% to 39.2% during 2024–26; it earns 13% on its capital.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2024-06-30 (filed 2026-10-16T07:40:02.220Z); FY2024: grossProfit / revenue = 39.2%.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2025-06-30 (filed 2026-10-16T07:40:02.220Z); FY2025: grossProfit / revenue = 38.9%.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2026-06-30 (filed 2026-10-16T07:40:02.220Z); FY2026: grossProfit / revenue = 35.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:02.220Z); 10-year return on capital observations [[2017,0.211206794690602],[2018,0.12552621157392424],[2019,0.22941381268860217],[2020,0.15291547345833179],[2021,0.2477075399775354],[2022,0.10738304389881956],[2023,0.11287708845390348],[2024,0.13367917532289392],[2025,0.10073851613095233],[2026,0.12057177102005955]]; median 0.12960269344840908. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 63.7 million of shares.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2017-06-30 (filed 2026-10-16T07:40:02.220Z); FY2017: growth capex 183128; upkeep 19387000; owner earnings 65849011. Growth capex / owner earnings = 0.002781028860099357.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2018-06-30 (filed 2026-10-16T07:40:02.220Z); FY2018: growth capex 3948595; upkeep 24259000; owner earnings 66331267. Growth capex / owner earnings = 0.05952841214385367.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2019-06-30 (filed 2026-10-16T07:40:02.220Z); FY2019: growth capex 5362484; upkeep 43365000; owner earnings 133566411. Growth capex / owner earnings = 0.040148447202043934.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2020-06-30 (filed 2026-10-16T07:40:02.220Z); FY2020: growth capex 0; upkeep 29842993.09; owner earnings 78836700.91. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2021-06-30 (filed 2026-10-16T07:40:02.220Z); FY2021: growth capex 0; upkeep 36492456.57; owner earnings 207704565.43. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2022-06-30 (filed 2026-10-16T07:40:02.220Z); FY2022: growth capex 0; upkeep 60456000; cash acquisitions 353159000; owner earnings 142084319. Growth capex plus acquisitions / owner earnings = 2.4855592966596123.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2023-06-30 (filed 2026-10-16T07:40:02.220Z); FY2023: growth capex 0; upkeep 42508000; owner earnings 175401374. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2024-06-30 (filed 2026-10-16T07:40:02.220Z); FY2024: growth capex 0; upkeep 41313000; cash acquisitions 101693000; owner earnings 128881000. Growth capex plus acquisitions / owner earnings = 0.7890457088321785.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2025-06-30 (filed 2026-10-16T07:40:02.220Z); FY2025: growth capex 0; upkeep 33477000; cash acquisitions 0; owner earnings 160901000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2026-06-30 (filed 2026-10-16T07:40:02.220Z); FY2026: growth capex 0; upkeep 19980169; owner earnings 60801138. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:02.220Z); Dividend observations: [[2017,15775369],[2018,34024664],[2019,38468918],[2020,26890438.73],[2021,76479383.3],[2022,76772000],[2023,74548000],[2024,56963000],[2025,39137000],[2026,35391782]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/RLLWF.US.json#2026-06-30 (filed 2026-10-16T07:40:02.220Z); FY2026: cash repurchases 63659676 USD.

### Are managers owners

Insiders own 2.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RWC.AU SharesStats.PercentInsiders = 2.409 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:02.220Z); Ten-year compound average after fade. Initial solved rate 0.03769737021967845. Price 4.72; FX 1.4454626926079037; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.0010605064836205283 → FY2026 0.07994050612816131. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 2.87 per share

- 2016-11: AUD 3.04 per share

- 2016-12: AUD 3.10 per share

- 2017-01: AUD 2.81 per share

- 2017-02: AUD 2.71 per share

- 2017-03: AUD 2.79 per share

- 2017-04: AUD 2.96 per share

- 2017-05: AUD 3.20 per share

- 2017-06: AUD 3.24 per share

- 2017-07: AUD 3.24 per share

- 2017-08: AUD 3.53 per share

- 2017-09: AUD 3.82 per share

- 2017-10: AUD 3.62 per share

- 2017-11: AUD 3.73 per share

- 2017-12: AUD 3.78 per share

- 2018-01: AUD 4.12 per share

- 2018-02: AUD 4.16 per share

- 2018-03: AUD 4.29 per share

- 2018-04: AUD 4.59 per share

- 2018-05: AUD 5.75 per share

- 2018-06: AUD 5.36 per share

- 2018-07: AUD 5.95 per share

- 2018-08: AUD 5.31 per share

- 2018-09: AUD 5.17 per share

- 2018-10: AUD 5.01 per share

- 2018-11: AUD 4.73 per share

- 2018-12: AUD 4.45 per share

- 2019-01: AUD 4.81 per share

- 2019-02: AUD 4.51 per share

- 2019-03: AUD 4.31 per share

- 2019-04: AUD 4.88 per share

- 2019-05: AUD 3.67 per share

- 2019-06: AUD 3.52 per share

- 2019-07: AUD 3.68 per share

- 2019-08: AUD 3.83 per share

- 2019-09: AUD 4.03 per share

- 2019-10: AUD 4.21 per share

- 2019-11: AUD 4.09 per share

- 2019-12: AUD 4.04 per share

- 2020-01: AUD 4.50 per share

- 2020-02: AUD 3.38 per share

- 2020-03: AUD 2.60 per share

- 2020-04: AUD 2.73 per share

- 2020-05: AUD 3.06 per share

- 2020-06: AUD 2.94 per share

- 2020-07: AUD 2.68 per share

- 2020-08: AUD 3.82 per share

- 2020-09: AUD 3.82 per share

- 2020-10: AUD 4.11 per share

- 2020-11: AUD 4.15 per share

- 2020-12: AUD 4.05 per share

- 2021-01: AUD 4.27 per share

- 2021-02: AUD 4.30 per share

- 2021-03: AUD 4.49 per share

- 2021-04: AUD 4.93 per share

- 2021-05: AUD 5.16 per share

- 2021-06: AUD 5.26 per share

- 2021-07: AUD 5.53 per share

- 2021-08: AUD 5.86 per share

- 2021-09: AUD 5.18 per share

- 2021-10: AUD 5.77 per share

- 2021-11: AUD 6.17 per share

- 2021-12: AUD 6.27 per share

- 2022-01: AUD 5.17 per share

- 2022-02: AUD 4.61 per share

- 2022-03: AUD 4.26 per share

- 2022-04: AUD 3.96 per share

- 2022-05: AUD 3.92 per share

- 2022-06: AUD 4.04 per share

- 2022-07: AUD 4.40 per share

- 2022-08: AUD 3.90 per share

- 2022-09: AUD 3.39 per share

- 2022-10: AUD 3.21 per share

- 2022-11: AUD 3.06 per share

- 2022-12: AUD 2.96 per share

- 2023-01: AUD 3.51 per share

- 2023-02: AUD 3.60 per share

- 2023-03: AUD 3.68 per share

- 2023-04: AUD 4.08 per share

- 2023-05: AUD 4.20 per share

- 2023-06: AUD 4.10 per share

- 2023-07: AUD 4.22 per share

- 2023-08: AUD 4.18 per share

- 2023-09: AUD 3.89 per share

- 2023-10: AUD 3.49 per share

- 2023-11: AUD 3.84 per share

- 2023-12: AUD 4.43 per share

- 2024-01: AUD 4.24 per share

- 2024-02: AUD 5.48 per share

- 2024-03: AUD 5.75 per share

- 2024-04: AUD 5.18 per share

- 2024-05: AUD 4.85 per share

- 2024-06: AUD 4.52 per share

- 2024-07: AUD 5.15 per share

- 2024-08: AUD 5.36 per share

- 2024-09: AUD 5.87 per share

- 2024-10: AUD 5.21 per share

- 2024-11: AUD 5.46 per share

- 2024-12: AUD 5.02 per share

- 2025-01: AUD 5.44 per share

- 2025-02: AUD 4.91 per share

- 2025-03: AUD 4.47 per share

- 2025-04: AUD 4.20 per share

- 2025-05: AUD 4.41 per share

- 2025-06: AUD 4.10 per share

- 2025-07: AUD 4.31 per share

- 2025-08: AUD 4.19 per share

- 2025-09: AUD 4.09 per share

- 2025-10: AUD 4.15 per share

- 2025-11: AUD 4.23 per share

- 2025-12: AUD 3.86 per share

- 2026-01: AUD 3.76 per share

- 2026-02: AUD 3.33 per share

- 2026-03: AUD 3.05 per share

- 2026-04: AUD 3.25 per share

- 2026-05: AUD 3.16 per share

- 2026-06: AUD 3.91 per share

- 2026-07: AUD 3.52 per share

- 2026-08: AUD 4.19 per share

- 2026-09: AUD 4.74 per share

- 2026-10: AUD 4.69 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 1.06 per share, central AUD 1.20 per share, high AUD 1.39 per share

- FY2018: low AUD 1.66 per share, central AUD 1.85 per share, high AUD 2.09 per share

- FY2019: low AUD 2.03 per share, central AUD 2.30 per share, high AUD 2.67 per share

- FY2020: low AUD 2.07 per share, central AUD 2.35 per share, high AUD 2.72 per share

- FY2021: low AUD 2.93 per share, central AUD 3.34 per share, high AUD 3.87 per share

- FY2022: low AUD 2.85 per share, central AUD 3.24 per share, high AUD 3.76 per share

- FY2023: low AUD 3.78 per share, central AUD 5.39 per share, high AUD 6.34 per share

- FY2024: low AUD 3.07 per share, central AUD 3.50 per share, high AUD 4.06 per share

- FY2025: low AUD 3.54 per share, central AUD 4.40 per share, high AUD 5.13 per share

- FY2026: low AUD 4.18 per share, central AUD 5.97 per share, high AUD 7.01 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.