Reliance Worldwide Corporation Limited
Reliance Worldwide Corporation Limited Fundamental Analysis
Reliance Worldwide Corporation Limited (RLLWF) shows moderate financial fundamentals with a PE ratio of 7.89, profit margin of 8.64%, and ROE of 14.35%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 5.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RLLWF's fundamental strength across five key dimensions:
Efficiency Score
WeakRLLWF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRLLWF trades at attractive valuation levels.
Growth Score
ExcellentRLLWF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRLLWF maintains a strong and stable balance sheet.
Profitability Score
WeakRLLWF struggles to sustain strong margins.
Key Financial Metrics
Is RLLWF Expensive or Cheap?
P/E Ratio
RLLWF trades at 7.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RLLWF's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Reliance Worldwide Corporation Limited at 1.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.34 times EBITDA. This is generally considered low.
How Well Does RLLWF Make Money?
Net Profit Margin
For every $100 in sales, Reliance Worldwide Corporation Limited keeps $8.64 as profit after all expenses.
Operating Margin
Core operations generate 14.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.35 in profit for every $100 of shareholder equity.
ROA
Reliance Worldwide Corporation Limited generates $8.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reliance Worldwide Corporation Limited produces operating cash flow of $358.68M, showing steady but balanced cash generation.
Free Cash Flow
Reliance Worldwide Corporation Limited generates strong free cash flow of $310.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.41 in free cash annually.
FCF Yield
RLLWF converts 20.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How RLLWF Stacks Against Its Sector Peers
| Metric | RLLWF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.89 | 25.96 | Better (Cheaper) |
| ROE | 14.35% | 1263.00% | Weak |
| Net Margin | 8.64% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.59 | 10.05 | Strong Liquidity |
| ROA | 8.86% | -1497918.00% (disorted) | Weak |
RLLWF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reliance Worldwide Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
105.46%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
42.23%
Industry Style: Cyclical, Value, Infrastructure
High Growth