NOT FOR DISTRIBUTION
Header cover image

Market Cap

CA$2.0b

Last Updated

2021/05/11 23:52 UTC

Data Sources

Company Financials +

Executive Summary

Russel Metals Inc., a metals distribution company, distributes steel and other metal products in North America. More Details


Snowflake Analysis

Flawless balance sheet established 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

Stable Share Price: RUS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RUS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

12.2%

RUS

6.3%

CA Trade Distributors

1.2%

CA Market


1 Year Return

122.8%

RUS

84.4%

CA Trade Distributors

35.5%

CA Market

Return vs Industry: RUS exceeded the Canadian Trade Distributors industry which returned 84.4% over the past year.

Return vs Market: RUS exceeded the Canadian Market which returned 35.5% over the past year.


Shareholder returns

RUSIndustryMarket
7 Day12.2%6.3%1.2%
30 Day18.3%7.5%1.7%
90 Day21.8%16.7%6.8%
1 Year141.0%122.8%89.5%84.4%39.9%35.5%
3 Year34.0%9.0%50.0%36.0%29.4%17.1%
5 Year87.7%35.7%131.5%98.6%59.0%35.2%

Long-Term 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 compared to its fair value and its price relative to the market?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RUS (CA$32.24) is trading below our estimate of fair value (CA$34.92)

Significantly Below Fair Value: RUS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RUS is poor value based on its PE Ratio (21.2x) compared to the Canadian Trade Distributors industry average (15.9x).

PE vs Market: RUS is poor value based on its PE Ratio (21.2x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: RUS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RUS's PB Ratio (2.2x) is in line with the CA Trade Distributors industry average.


Future Growth

How is Russel Metals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUS's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: RUS's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: RUS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RUS's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: RUS's revenue is forecast to decline over the next 3 years (-0.7% 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 (14.8%).


Past Performance

How has Russel Metals performed over the past 5 years?

18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUS has a large one-off gain of CA$26.7M impacting its March 31 2021 financial results.

Growing Profit Margin: RUS's current net profit margins (3.4%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: RUS has become profitable over the past 5 years, growing earnings by 18.1% per year.

Accelerating Growth: RUS's earnings growth over the past year (79.2%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: RUS earnings growth over the past year (79.2%) exceeded the Trade Distributors industry 38.3%.


Return on Equity

High ROE: RUS's Return on Equity (10.2%) is considered low.


Financial Health

How is Russel Metals's financial position?


Financial Position Analysis

Short Term Liabilities: RUS's short term assets (CA$1.3B) exceed its short term liabilities (CA$447.0M).

Long Term Liabilities: RUS's short term assets (CA$1.3B) exceed its long term liabilities (CA$414.8M).


Debt to Equity History and Analysis

Debt Level: RUS's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: RUS's debt to equity ratio has reduced from 45.4% to 31.6% over the past 5 years.

Debt Coverage: RUS's debt is well covered by operating cash flow (135.7%).

Interest Coverage: RUS's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

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

4.71%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 12 2021Ex Dividend DateMay 26 2021Dividend Pay DateJun 15 202120 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RUS's dividend (4.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.5%).

High Dividend: RUS's dividend (4.71%) is in the top 25% of dividend payers in the Canadian market (4.53%)


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 high payout ratio (100%), RUS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RUS's dividends in 3 years are forecast to be covered by earnings (78% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

John Reid (51 yo)

3yrs

Tenure

CA$1,998,609

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 Me...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.65M) is about average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RUS's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: RUS's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RUS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.008b
  • Shares outstanding: 62.30m
  • Website: https://www.russelmetals.com

Number of Employees


Location

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

Listings


Biography

Russel Metals Inc., a metals distribution company, distributes steel and other metal products in North America. The company operates through three segments: Metals Service Centers, Energy Products, and Ste...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 23:52
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.