RWS Holdings (RWS) AI Stock Analysis

• Market Cap: £330.61M
• Dividend Yield: 13.93%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.64
• Revenue Growth: -0.78%
• EPS Growth: N/A
• Country: UK
• Employees: 7,752
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.04
• Shares Outstanding: 369,807,650
• 10 Day Avg. Volume: 852,480
• 30 Day Avg. Volume: 1,452,965
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £169.00
• Price Target Upside: 89.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: 98.00p ▲(9.62% Upside)

RWS Holdings scores well due to its strong valuation metrics, particularly the attractive dividend yield and reasonable P/E ratio. Financial performance is stable, with strong equity and operational improvements, though revenue and cash flow declines present areas for improvement. Technical analysis shows potential for upward movement, contributing to a positive outlook.

RWS Holdings Business Overview & Revenue Model

Company Description

RWS Holdings plc provides technology-enabled language, content management, and intellectual property (IP) services. It operates through four segments: Language Services, Regulated Industries, IP Services, and Language and Content Technology. The Language Services segment provides language services and helps clients to create, translate, and deliver content in approximately 250 languages. The Regulated Industries segment offers a full suite of language services, including language solutions for clinical trial management, linguistic validation of clinical outcomes assessments, insurance, retail, commercial and investment banking, compliance, mergers and acquisitions, and litigation services. The IP Services segment provides patent translation and filing services, as well as a range of IP search services. The Language and Content Technology segment offers language technology and artificial intelligence solutions that enables enterprises to create, manage, translate, and automate content in various languages; and content management technology support services. It serves automotive, energy, retail and e-commerce, legal, travel and hospitality, leisure, finance, industrial and manufacturing, life sciences, high-tech software, chemical, media, aerospace and defense, managed care, telecom, and government sectors. The company primarily operates in the United Kingdom, the United States, Continental Europe, and internationally. RWS Holdings plc was founded in 1958 and is headquartered in Chalfont St Peter, the United Kingdom.

How the Company Makes Money

RWS generates revenue through multiple streams, primarily from its language services and technology solutions. Key revenue streams include fees for translation and localization services, which are charged based on project scope, word count, and complexity. Additionally, the company earns revenue from its intellectual property services, including patent translations and patent filing support, which are critical for clients in industries like pharmaceuticals and technology. RWS also offers proprietary translation technology and tools, which are licensed to clients, contributing to recurring revenue. Significant partnerships with multinational corporations and government agencies further bolster its earnings, as these clients often require ongoing language services to support their global operations. The company focuses on strategic acquisitions to expand its capabilities and market reach, enhancing its revenue potential.

RWS Holdings Financial Statement Overview

Summary

RWS Holdings maintains a solid financial position with strong equity and improving operational efficiency. However, the decline in revenue and free cash flow highlight areas for growth and risk management. The company is well-positioned in terms of leverage and equity stability, yet needs to focus on enhancing revenue growth and cash flow conversion to boost overall financial performance.

Income Statement

RWS Holdings exhibits a stable gross profit margin of 46.8% and a net profit margin of 6.6% for the latest annual period. Despite a revenue decline of 2.1% compared to the previous year, the company shows improvement in EBIT margin at 9.2% and EBITDA margin at 18.9%, indicating better operational efficiency. However, the decrease in total revenue and previous year's negative EBIT highlight areas for potential risk.

Balance Sheet

The balance sheet shows strong equity, with an equity ratio of 74.6% and a low debt-to-equity ratio of 0.11. The return on equity is 5.3%, indicating moderate returns for shareholders. The strong equity position provides stability, although the relatively low ROE suggests room for improvement in profitability.

Cash Flow

The cash flow analysis reveals a decrease in free cash flow by 52.1% year-over-year, affecting overall cash flow strength. However, the operating cash flow to net income ratio is robust at 1.59, indicating efficient cash generation from operations relative to net income. The free cash flow to net income ratio of 0.68 suggests moderate conversion of net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	718.20M	718.20M	733.80M	749.20M	694.50M	355.80M
Gross Profit	336.50M	336.50M	339.50M	350.20M	313.20M	139.60M
EBITDA	134.90M	135.80M	141.50M	154.20M	123.80M	87.70M
Net Income	47.50M	47.50M	-27.70M	62.70M	41.20M	46.40M
Balance Sheet
Total Assets	1.21B	1.21B	1.32B	1.48B	1.35B	592.50M
Cash, Cash Equivalents and Short-Term Investments	61.50M	61.50M	76.20M	101.20M	92.50M	51.40M
Total Debt	101.60M	101.60M	86.10M	76.00M	98.70M	89.30M
Total Liabilities	306.90M	306.90M	328.50M	334.60M	336.30M	183.60M
Stockholders Equity	899.60M	899.60M	987.30M	1.14B	1.01B	408.90M
Cash Flow
Free Cash Flow	71.50M	32.20M	67.20M	96.60M	61.10M	68.20M
Operating Cash Flow	74.10M	75.30M	107.50M	126.20M	84.30M	76.20M
Investing Cash Flow	-18.60M	-17.70M	-71.20M	-43.70M	23.90M	-31.00M
Financing Cash Flow	-65.00M	-67.10M	-53.50M	-81.80M	-65.40M	-40.60M

RWS Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWS, the sentiment is Positive. The current price of 89.4 is below the 20-day moving average (MA) of 89.51, above the 50-day MA of 87.09, and below the 200-day MA of 107.70, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 31.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RWS.

RWS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	79 Outperform	583.20M	16.86	11.60%	2.70%	6.55%	18.44%
RWS	73 Outperform	£330.61M	13.13	2.82%	13.93%	-0.78%	―
FRAN	72 Outperform	254.15M	32.12	3.33%	1.60%	15.22%	1.23%
RST	64 Neutral	362.85M	38.63	5.30%	2.26%	6.90%	―
PPHC	63 Neutral	242.55M	-11.95	-29.48%	2.71%	7.76%	-60.70%
CPI	59 Neutral	299.16M	18.31	38.37%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

RWS Holdings Corporate Events

RWS Holdings Announces Total Voting Rights Update

RWS Holdings PLC has announced its total voting rights as of August 31, 2025, with an issued share capital comprising 369,807,646 ordinary shares, each carrying one voting right. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, potentially impacting their stake management and investment decisions.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £96.00 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Total Voting Rights Update

RWS Holdings plc has announced that as of 31 July 2025, its issued and fully paid share capital consists of 369,807,646 ordinary shares, each with one voting right. The company does not hold any shares in treasury, and this total number of voting rights will be used by shareholders to determine their notification obligations under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.20 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings CEO Acquires Shares Reflecting Confidence in Future

RWS Holdings announced that its CEO, Benjamin Faes, has acquired 28,067 ordinary shares through dividend reinvestment at a price of €1.01 per share. This transaction, conducted on the London Stock Exchange, reflects a strategic move by the CEO, potentially indicating confidence in the company’s future performance and stability. The acquisition aligns with regulatory compliance under the EU Market Abuse Regulation.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.05 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Change in Voting Rights Structure

RWS Holdings Plc has announced a change in its voting rights structure due to an acquisition or disposal of voting rights by Richard Griffiths, a shareholder based in St Helier, Jersey. As of July 15, 2025, Griffiths holds a total of 5.53% of the voting rights, up from a previous position of 4.77%. This adjustment reflects a significant increase in Griffiths’ influence within the company, potentially impacting future shareholder decisions and company governance.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £1.95 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings PLC Announces Change in Major Shareholder Holdings

RWS Holdings PLC has announced a change in its major holdings, with Richard Griffiths acquiring a significant portion of voting rights. This acquisition increases Griffiths’ total voting rights to 5.53%, indicating a strategic move that could influence the company’s governance and decision-making processes. The change in holdings reflects a potential shift in stakeholder influence within the company, which may impact its strategic direction.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Grants Share Options to New PDMRs

RWS Holdings plc announced the granting of options over ordinary shares to newly appointed Persons Discharging Managerial Responsibilities (PDMRs) under its Long Term Incentive Plan. This move, compliant with the EU Market Abuse Regulation, involves key figures such as Joseph Ayala and Christina Scott, and reflects RWS’s commitment to aligning managerial incentives with company performance, potentially impacting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £1.95 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Announces Total Voting Rights Update

RWS Holdings, a company listed on the stock market, has announced its total voting rights as of June 30, 2025. The company’s issued share capital consists of 369,807,646 ordinary shares, each with one voting right, and no shares are held in treasury. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.30 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.

RWS Holdings Appoints Deutsche Bank AG as New Adviser

RWS Holdings PLC has announced a change in its Nominated Adviser and Broker from Numis Securities Limited to Deutsche Bank AG, London Branch, following the acquisition of Numis Securities Limited’s parent company by Deutsche Bank AG. This strategic move is expected to enhance RWS Holdings’ financial advisory and brokerage services, potentially impacting its market positioning and operations positively.

The most recent analyst rating on (GB:RWS) stock is a Buy with a £3.05 price target. To see the full list of analyst forecasts on RWS Holdings stock, see the GB:RWS Stock Forecast page.