Russel Metals
Market Cap
CA$1.4b
Last Updated
2020/01/26 23:51 UTC
Data Sources
Company Financials +
Executive Summary
Russel Metals Inc. distributes steel and metal products in North America.
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and good value.
Similar Companies
Share Price & News
How has Russel Metals's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RUS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.1%
RUS
-1.6%
CA Trade Distributors
-5.3%
CA Market
1 Year Return
-3.5%
RUS
8.9%
CA Trade Distributors
-1.6%
CA Market
Return vs Industry: RUS underperformed the Canadian Trade Distributors industry which returned 8.5% over the past year.
Return vs Market: RUS underperformed the Canadian Market which returned 10.4% over the past year.
Shareholder returns
| RUS | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | -1.6% | -5.3% |
| 30 Day | -0.5% | -0.08% | -4.2% |
| 90 Day | 5.9% | 8.4% | 0.3% |
| 1 Year | 3.3%-3.5% | 12.5%8.9% | 1.4%-1.6% |
| 3 Year | -0.9%-17.1% | 19.2%9.1% | -4.3%-11.9% |
| 5 Year | 31.6%-4.3% | 63.7%39.2% | 10.3%-4.2% |
Price Volatility Vs. Market
How volatile is Russel Metals's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Russel Metals Inc. (TSE:RUS) Earns Among The Best Returns In Its Industry1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Russel Metals Inc. (TSE:RUS)1 month ago | Simply Wall St
Does Russel Metals Inc.'s (TSE:RUS) P/E Ratio Signal A Buying Opportunity?Valuation
Is Russel Metals undervalued compared to its fair value and its price relative to the market?
28.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RUS (CA$22.8) is trading below our estimate of fair value (CA$30.7)
Significantly Below Fair Value: RUS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RUS is good value based on its PE Ratio (10.9x) compared to the Trade Distributors industry average (14.6x).
PE vs Market: RUS is good value based on its PE Ratio (10.9x) compared to the Canadian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: RUS is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: RUS is overvalued based on its PB Ratio (1.4x) compared to the CA Trade Distributors industry average (1x).
Next Steps
Future Growth
How is Russel Metals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RUS's forecast earnings growth (10.1% per year) is above the savings rate (1.4%).
Earnings vs Market: RUS's earnings (10.1% per year) are forecast to grow faster than the Canadian market (9.9% per year).
High Growth Earnings: RUS's earnings are forecast to grow, but not significantly.
Revenue vs Market: RUS's revenue is expected to decline over the next 3 years (-1.6% per year).
High Growth Revenue: RUS's revenue is forecast to decline over the next 3 years (-1.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RUS's Return on Equity is forecast to be low in 3 years time (12.5%).
Next Steps
Past Performance
How has Russel Metals performed over the past 5 years?
26.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RUS has high quality earnings.
Growing Profit Margin: RUS's current net profit margins (3.3%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: RUS's earnings have grown significantly by 26.3% per year over the past 5 years.
Accelerating Growth: RUS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RUS had negative earnings growth (-35.6%) over the past year, making it difficult to compare to the Trade Distributors industry average (-5.2%).
Return on Equity
High ROE: RUS's Return on Equity (13.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Russel Metals's financial position?
Financial Position Analysis
Short Term Liabilities: RUS's short term assets (CA$1.6B) exceed its short term liabilities (CA$515.7M).
Long Term Liabilities: RUS's short term assets (CA$1.6B) exceed its long term liabilities (CA$575.7M).
Debt to Equity History and Analysis
Debt Level: RUS's debt to equity ratio (58.9%) is considered high.
Reducing Debt: RUS's debt to equity ratio has increased from 48.8% to 58.9% over the past 5 years.
Debt Coverage: RUS's debt is well covered by operating cash flow (37.9%).
Interest Coverage: RUS's interest payments on its debt are well covered by EBIT (5.5x coverage).
Balance Sheet
Inventory Level: RUS has a high level of physical assets or inventory.
Debt Coverage by Assets: RUS's debt is covered by short term assets (assets are 2.8x debt).
Next Steps
Dividend
What is Russel Metals's current dividend yield, its reliability and sustainability?
6.78%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RUS's dividend (6.67%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).
High Dividend: RUS's dividend (6.67%) is in the top 25% of dividend payers in the Canadian market (5.48%)
Stability and Growth of Payments
Stable Dividend: RUS's dividends per share have been stable in the past 10 years.
Growing Dividend: RUS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73%), RUS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RUS's dividends in 3 years are forecast to be covered by earnings (70.2% payout ratio).
Next Steps
Management
What is the CEO of Russel Metals's salary, the management and board of directors tenure and is there insider trading?
9.0yrs
Average management tenure
CEO
John Reid (50yo)
1.7yrs
Tenure
CA$6,349,494
Compensation
Mr. John Gregory Reid has been the President at Russel Metals Inc. since January 01, 2016 and has been its Chief Executive Officer since May 2, 2018. Mr. Reid served as Chief Operating Officer at Russel ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD4.86M) is above average for companies of similar size in the Canadian market ($USD1.63M).
Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
9.0yrs
Average Tenure
Experienced Management: RUS's management team is seasoned and experienced (9 years average tenure).
Board Age and Tenure
7.2yrs
Average Tenure
65.5yo
Average Age
Experienced Board: RUS's board of directors are considered experienced (7.2 years average tenure).
Insider Trading
Insider Buying: RUS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Non-Independent Director |
| Shares | 9,000 |
| Max Price | CA$22.80 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 6,000 |
| Max Price | CA$21.33 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Independent Director |
| Shares | 9,000 |
| Max Price | CA$19.84 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,900 |
| Max Price | CA$20.21 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | CA$19.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,000 |
| Max Price | CA$20.55 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | CA$20.18 |
| Entity | Individual |
| Role | Chairman of the Board Chair of the Board |
| Shares | 2,500 |
| Max Price | CA$20.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | CA$24.32 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,585 |
| Max Price | CA$22.96 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Marion Britton
Executive VP
- Tenure: 11.9yrs
- Compensation: CA$2.53m
Lesley M. Coleman
VP, Controller & Assistant Secretary
- Tenure: 15yrs
- Compensation: CA$288.79k
Sherri McKelvey
Assistant Secretary
John Reid (50yo)
CEO, President & Director
- Tenure: 1.7yrs
- Compensation: CA$6.35m
Dean Rougas
President of Spartan Steel Products Division
- Tenure: 9yrs
Ryan MacDermid
Vice President of Risk Management & Legal
- Tenure: 4.8yrs
Reynold Wilden
President of Pioneer Pipe
Board Members
Barbara Jeremiah (67yo)
Independent Director
- Tenure: 3.7yrs
- Compensation: CA$148.50k
John Tulloch (72yo)
Independent Director
- Tenure: 6.7yrs
- Compensation: CA$154.30k
Brian Hedges (66yo)
Non-Independent Director
- Tenure: 10.7yrs
- Compensation: CA$2.54m
Bill O'Reilly (70yo)
Independent Director
- Tenure: 10.7yrs
- Compensation: CA$152.35k
Jim Dinning (65yo)
Chair of the Board
- Tenure: 5.7yrs
- Compensation: CA$247.00k
John Clark (64yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: CA$157.50k
Alice Laberge (62yo)
Independent Director
- Tenure: 12.5yrs
- Compensation: CA$152.00k
Alain Benedetti (70yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: CA$150.65k
John Reid (50yo)
CEO, President & Director
- Tenure: 1.7yrs
- Compensation: CA$6.35m
Annie Thabet (58yo)
Independent Director
- Tenure: 2yrs
- Compensation: CA$144.00k
Company Information
Russel Metals Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Russel Metals Inc.
- Ticker: RUS
- Exchange: TSX
- Founded: 1929
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$1.394b
- Shares outstanding: 62.17m
- Website: https://www.russelmetals.com
Number of Employees
Location
- Russel Metals Inc.
- 6600 Financial Drive
- Mississauga
- Ontario
- L5N 7J6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RUS | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Apr 1973 |
| RUSM.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Apr 1973 |
| RMZ | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 1973 |
Biography
Russel Metals Inc. distributes steel and metal products in North America. The company operates through three segments: Metal Service Centers, Energy Products, and Steel Distributors. The Metal Service Center segment sells plates, flat rolled carbon and general line steel products, stainless steel, aluminum, and other non-ferrous specialty metal products. It also offers services, such as shearing, slitting, and cutting to length; laser, oxy-feel, and plasma cutting; stretcher and traditional leveling; beam drilling, notching, coping, and tee-splitting; tube laser processing and saw cutting; edge trimming; and cambering. This segment serves customers in industries, such as machinery and equipment manufacturing, construction, ship building, and natural resources. The Energy Products segment distributes oil country tubular goods, line pipes, tubes, flanges, valves, and fittings primarily to energy industry. The Steel Distributors segment operates as a steel distributor for steel service centers and equipment manufactures. Russel Metals Inc. was founded in 1929 and is headquartered in Mississauga, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/26 23:51 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.