TSX:RUS

Stock Analysis Report

Executive Summary

Russel Metals Inc. distributes steel and metal products in North America.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

1.5%

TSX:RUS

-1.0%

CA Trade Distributors

1.2%

CA Market


1 Year Return

-19.7%

TSX:RUS

-16.5%

CA Trade Distributors

-0.4%

CA Market

RUS underperformed the Trade Distributors industry which returned -15.1% over the past year.

RUS underperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

RUSIndustryMarket
7 Day1.5%-1.0%1.2%
30 Day10.1%3.9%3.3%
90 Day-3.2%2.7%0.8%
1 Year-14.1%-19.7%-13.8%-16.5%3.1%-0.4%
3 Year24.1%4.0%21.7%11.9%18.0%7.4%
5 Year-16.9%-39.3%19.1%0.3%22.0%4.5%

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

Valuation

Is Russel Metals undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Russel Metals's share price is below the future cash flow value, and at a moderate discount (> 20%).

Russel Metals's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Russel Metals is good value based on earnings compared to the CA Trade Distributors industry average.

Russel Metals is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Russel Metals earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Russel Metals is overvalued based on assets compared to the CA Trade Distributors industry average.


Next Steps

Future Growth

How is Russel Metals expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Russel Metals's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Russel Metals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Russel Metals's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

Russel Metals's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Russel Metals's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Russel Metals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Russel Metals performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Russel Metals has delivered over 20% year on year earnings growth in the past 5 years.

Russel Metals's 1-year earnings growth is less than its 5-year average (7.9% vs 24.2%)

Russel Metals's earnings growth has exceeded the CA Trade Distributors industry average in the past year (7.9% vs -7%).


Return on Equity

Russel Metals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Russel Metals used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Russel Metals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Russel Metals's financial position?


Financial Position Analysis

Russel Metals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Russel Metals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Russel Metals's level of debt (59.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (52% vs 59.1% today).

Debt is not well covered by operating cash flow (19.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

What is Russel Metals's current dividend yield, its reliability and sustainability?

6.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Russel Metals's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

Russel Metals's dividend is above the markets top 25% of dividend payers in Canada (5.79%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of Russel Metals's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

John Reid (50yo)

1.3yrs

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

John's remuneration is higher than average for companies of similar size in Canada.

John's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

8.7yrs

Average Tenure

The average tenure for the Russel Metals management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.8yrs

Average Tenure

65.5yo

Average Age

The tenure for the Russel Metals board of directors is about average.


Insider Trading

More shares have been bought than sold by Russel Metals individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$127,98013 Sep 19
John Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceCA$21.33
BuyCA$176,85828 Aug 19
Brian Hedges
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares9,000
Max PriceCA$19.84
BuyCA$96,85627 Aug 19
Annie Thabet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,900
Max PriceCA$20.21
BuyCA$39,00026 Aug 19
William O'Reilly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$19.50
BuyCA$61,61422 Aug 19
John Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$20.55
BuyCA$50,85121 Aug 19
James Dinning
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares2,500
Max PriceCA$20.34
BuyCA$100,90021 Aug 19
William O'Reilly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$20.18
SellCA$243,22527 Feb 19
Alain Benedetti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$24.32
BuyCA$59,35212 Feb 19
Barbara Jeremiah
EntityIndividual
Role
Member of the Board of Directors
Shares2,585
Max PriceCA$22.96
BuyCA$28,43417 Dec 18
Ryan MacDermid
EntityIndividual
Role
Chief Legal Officer
Vice President of Risk Management & Legal
Shares1,366
Max PriceCA$20.82
BuyCA$48,85117 Dec 18
Annie Thabet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,340
Max PriceCA$20.92
BuyCA$14,63014 Dec 18
William O'Reilly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceCA$20.90
BuyCA$105,39014 Dec 18
Brian Hedges
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares5,000
Max PriceCA$21.19
BuyCA$21,23013 Dec 18
Alice Laberge
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max PriceCA$21.23
BuyCA$21,10011 Dec 18
James Dinning
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares1,000
Max PriceCA$21.10
BuyCA$84,68711 Dec 18
William O'Reilly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$21.20
BuyCA$219,17107 Dec 18
Alain Benedetti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceCA$21.92
BuyCA$8,92405 Dec 18
Alice Laberge
EntityIndividual
Role
Member of the Board of Directors
Shares400
Max PriceCA$22.31
BuyCA$22,73028 Nov 18
James Dinning
EntityIndividual
Role
Chairman of the Board
Chair of the Board
Shares1,000
Max PriceCA$22.73
BuyCA$114,66328 Nov 18
William O'Reilly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$22.94
BuyCA$97,50015 Nov 18
Annie Thabet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,750
Max PriceCA$26.00

Ownership Breakdown


Management Team

  • Marion Britton

    Executive VP

    • Tenure: 11.6yrs
    • Compensation: CA$2.53m
  • Lesley M. Coleman

    VP, Controller & Assistant Secretary

    • Tenure: 14.7yrs
    • Compensation: CA$288.79k
  • Sherri McKelvey

    Assistant Secretary

    • Tenure: 0yrs
  • John Reid (50yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: CA$6.35m
  • Dean Rougas

    President of Spartan Steel Products Division

    • Tenure: 8.7yrs
  • Ryan MacDermid

    Vice President of Risk Management & Legal

    • Tenure: 4.5yrs
  • Reynold Wilden

    President of Pioneer Pipe

    • Tenure: 0yrs

Board Members

  • Barbara Jeremiah (67yo)

    • Tenure: 3.3yrs
    • Compensation: CA$148.50k
  • John Tulloch (72yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$154.30k
  • Brian Hedges (66yo)

    Non-Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$7.45m
  • Bill O'Reilly (70yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$152.35k
  • Jim Dinning (65yo)

    Chair of the Board

    • Tenure: 5.3yrs
    • Compensation: CA$247.00k
  • John Clark (64yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$157.50k
  • Alice Laberge (62yo)

    • Tenure: 12.2yrs
    • Compensation: CA$152.00k
  • Alain Benedetti (70yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: CA$150.65k
  • John Reid (50yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: CA$6.35m
  • Annie Thabet (58yo)

    Director

    • Tenure: 1.7yrs
    • 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$1.353b
  • Shares outstanding: 62.11m
  • Website: https://www.russelmetals.com

Number of Employees


Location

  • Russel Metals Inc.
  • 6600 Financial Drive
  • Mississauga
  • Ontario
  • L5N 7J6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUSTSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 1973
RUSM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1973
RMZDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 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 Cent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:39
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.