Reliance Worldwide Corporation: Looking after the plumbing
Anton Crabbe is a new contributor to Stockopedia and we look forward to reading more future insights. To learn more about Anton you can read his profile here.
Reliance Worldwide (ASX:RWC) is a company that I like, and on the recent pull back in its share price due to the broader market reaction to the failure of SVB. I like it even more. Being in the building and construction space, they will experience the ups and downs of the construction industry as it inevitably cycles through its boom-and-bust phases.
Management has done the right things by shareholders and returned excess capital, and not issued excessive amounts of shares since listing in 2016. For a manufacturer/supplier in this space, they are conservatively geared with a 55% net-gearing ratio. They have stuck to their knitting and management has not decided to go off and buy a movie studio or start manufacturing EVs, or something daft like that.
RWC is involved in designing, manufacturing and supplying high quality, reliable and premium branded water flow, control and monitoring products and solutions for the plumbing and heating industry. They...