I've been keeping an eye on Reliance Worldwide Corporation Limited (ASX:RWC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe RWC has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Reliance Worldwide here.

Solid track record with excellent balance sheet

Over the past few years, RWC has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, RWC also outperformed its industry, which delivered a growth of -12%. This is an notable feat for the company. RWC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RWC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. RWC's has produced operating cash levels of 0.27x total debt over the past year, which implies that RWC's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Next Steps:

For Reliance Worldwide, there are three essential factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for RWC’s future growth? Take a look at our free research report of analyst consensus for RWC’s outlook.

2. Valuation: What is RWC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RWC is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RWC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.