RAI WAY SPA (RWAY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RWAY - IT0005054967 - Common Stock
5.545 EUR
+0.01 (+0.27%)
We assign a fundamental rating of 7 out of 10 to RWAY. RWAY was compared to 37 industry peers in the Diversified Telecommunication Services industry. RWAY gets an excellent profitability rating and is at the same time showing great financial health properties. RWAY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RWAY had positive earnings in the past year.
RWAY had a positive operating cash flow in the past year.
RWAY had positive earnings in each of the past 5 years.
RWAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RWAY has a better Return On Assets (19.67%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 59.91%, RWAY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RWAY has a Return On Invested Capital of 31.28%. This is amongst the best in the industry. RWAY outperforms 100.00% of its industry peers.
RWAY had an Average Return On Invested Capital over the past 3 years of 29.45%. This is significantly above the industry average of 7.57%.
The last Return On Invested Capital (31.28%) for RWAY is above the 3 year average (29.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 59.91% | ||
| ROIC | 31.28% |
ROA(3y)18.18%
ROA(5y)18.2%
ROE(3y)44.84%
ROE(5y)42.55%
ROIC(3y)29.45%
ROIC(5y)27.7%
1.3 Margins
RWAY has a Profit Margin of 32.27%. This is amongst the best in the industry. RWAY outperforms 97.30% of its industry peers.
RWAY's Profit Margin has improved in the last couple of years.
The Operating Margin of RWAY (47.69%) is better than 97.30% of its industry peers.
RWAY's Operating Margin has improved in the last couple of years.
RWAY has a Gross Margin of 99.52%. This is amongst the best in the industry. RWAY outperforms 100.00% of its industry peers.
RWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.69% | ||
| PM (TTM) | 32.27% | ||
| GM | 99.52% |
OM growth 3Y6.59%
OM growth 5Y3.51%
PM growth 3Y4.63%
PM growth 5Y2.62%
GM growth 3Y0.06%
GM growth 5Y3.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RWAY is creating value.
Compared to 1 year ago, RWAY has about the same amount of shares outstanding.
RWAY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RWAY has a worse debt to assets ratio.
2.2 Solvency
RWAY has an Altman-Z score of 4.64. This indicates that RWAY is financially healthy and has little risk of bankruptcy at the moment.
RWAY has a better Altman-Z score (4.64) than 97.30% of its industry peers.
The Debt to FCF ratio of RWAY is 2.41, which is a good value as it means it would take RWAY, 2.41 years of fcf income to pay off all of its debts.
RWAY's Debt to FCF ratio of 2.41 is amongst the best of the industry. RWAY outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that RWAY is somewhat dependend on debt financing.
The Debt to Equity ratio of RWAY (0.84) is better than 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.64 |
ROIC/WACC4.11
WACC7.61%
2.3 Liquidity
RWAY has a Current Ratio of 0.58. This is a bad value and indicates that RWAY is not financially healthy enough and could expect problems in meeting its short term obligations.
RWAY has a Current ratio of 0.58. This is in the lower half of the industry: RWAY underperforms 78.38% of its industry peers.
A Quick Ratio of 0.58 indicates that RWAY may have some problems paying its short term obligations.
RWAY's Quick ratio of 0.58 is on the low side compared to the rest of the industry. RWAY is outperformed by 78.38% of its industry peers.
The current and quick ratio evaluation for RWAY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
RWAY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.03%.
The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
Looking at the last year, RWAY shows a small growth in Revenue. The Revenue has grown by 1.95% in the last year.
RWAY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
EPS 1Y (TTM)1.03%
EPS 3Y11.19%
EPS 5Y7.53%
EPS Q2Q%5.75%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y6.29%
Revenue growth 5Y4.52%
Sales Q2Q%2.38%
3.2 Future
RWAY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.36% yearly.
RWAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y-0.49%
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year2.59%
Revenue Next 2Y3.66%
Revenue Next 3Y4.01%
Revenue Next 5Y0.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RWAY is valuated correctly with a Price/Earnings ratio of 16.31.
Based on the Price/Earnings ratio, RWAY is valued a bit cheaper than 67.57% of the companies in the same industry.
RWAY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.40, which indicates a correct valuation of RWAY.
RWAY's Price/Forward Earnings is on the same level as the industry average.
RWAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RWAY indicates a slightly more expensive valuation: RWAY is more expensive than 67.57% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RWAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.3 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
The excellent profitability rating of RWAY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.97%, RWAY is a good candidate for dividend investing.
RWAY's Dividend Yield is a higher than the industry average which is at 3.29.
RWAY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
On average, the dividend of RWAY grows each year by 7.98%, which is quite nice.
Dividend Growth(5Y)7.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
99.29% of the earnings are spent on dividend by RWAY. This is not a sustainable payout ratio.
The dividend of RWAY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.29%
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
BIT:RWAY (1/9/2026, 5:29:55 PM)
5.545
+0.01 (+0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners18.7%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.51B
Revenue(TTM)278.87M
Net Income(TTM)89.99M
Analysts86.15
Price Target7.04 (26.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend0.32
Dividend Growth(5Y)7.98%
DP99.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.04%
PT rev (3m)-3.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.02%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 16.4 | ||
| P/S | 5.41 | ||
| P/FCF | 19.3 | ||
| P/OCF | 11.7 | ||
| P/B | 10.04 | ||
| P/tB | 12.13 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)0.34
EY6.13%
EPS(NY)0.34
Fwd EY6.1%
FCF(TTM)0.29
FCFY5.18%
OCF(TTM)0.47
OCFY8.55%
SpS1.03
BVpS0.55
TBVpS0.46
PEG (NY)N/A
PEG (5Y)2.16
Graham Number2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 59.91% | ||
| ROCE | 43.72% | ||
| ROIC | 31.28% | ||
| ROICexc | 32.4% | ||
| ROICexgc | 35.53% | ||
| OM | 47.69% | ||
| PM (TTM) | 32.27% | ||
| GM | 99.52% | ||
| FCFM | 28.02% |
ROA(3y)18.18%
ROA(5y)18.2%
ROE(3y)44.84%
ROE(5y)42.55%
ROIC(3y)29.45%
ROIC(5y)27.7%
ROICexc(3y)32.98%
ROICexc(5y)30.23%
ROICexgc(3y)36.29%
ROICexgc(5y)32.96%
ROCE(3y)41.16%
ROCE(5y)38.71%
ROICexgc growth 3Y6.89%
ROICexgc growth 5Y-0.52%
ROICexc growth 3Y6.17%
ROICexc growth 5Y-0.84%
OM growth 3Y6.59%
OM growth 5Y3.51%
PM growth 3Y4.63%
PM growth 5Y2.62%
GM growth 3Y0.06%
GM growth 5Y3.33%
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 95.39% | ||
| Cap/Sales | 18.21% | ||
| Interest Coverage | 26.11 | ||
| Cash Conversion | 69.22% | ||
| Profit Quality | 86.82% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 4.64 |
F-Score4
WACC7.61%
ROIC/WACC4.11
Cap/Depr(3y)126.44%
Cap/Depr(5y)135.59%
Cap/Sales(3y)23.34%
Cap/Sales(5y)26.66%
Profit Quality(3y)92.68%
Profit Quality(5y)83.3%
High Growth Momentum
Growth
EPS 1Y (TTM)1.03%
EPS 3Y11.19%
EPS 5Y7.53%
EPS Q2Q%5.75%
EPS Next Y-0.49%
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.95%
Revenue growth 3Y6.29%
Revenue growth 5Y4.52%
Sales Q2Q%2.38%
Revenue Next Year2.59%
Revenue Next 2Y3.66%
Revenue Next 3Y4.01%
Revenue Next 5Y0.13%
EBIT growth 1Y1.73%
EBIT growth 3Y13.29%
EBIT growth 5Y8.19%
EBIT Next Year42.05%
EBIT Next 3Y15.84%
EBIT Next 5Y5.49%
FCF growth 1Y12.3%
FCF growth 3Y35.02%
FCF growth 5Y1.74%
OCF growth 1Y-3.88%
OCF growth 3Y4.07%
OCF growth 5Y3.62%
RAI WAY SPA / RWAY.MI FAQ
What is the fundamental rating for RWAY stock?
ChartMill assigns a fundamental rating of 7 / 10 to RWAY.MI.
What is the valuation status for RWAY stock?
ChartMill assigns a valuation rating of 4 / 10 to RAI WAY SPA (RWAY.MI). This can be considered as Fairly Valued.
What is the profitability of RWAY stock?
RAI WAY SPA (RWAY.MI) has a profitability rating of 10 / 10.
What is the financial health of RAI WAY SPA (RWAY.MI) stock?
The financial health rating of RAI WAY SPA (RWAY.MI) is 7 / 10.
Can you provide the dividend sustainability for RWAY stock?
The dividend rating of RAI WAY SPA (RWAY.MI) is 6 / 10 and the dividend payout ratio is 99.29%.