TSX:RUS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with adequate balance sheet.


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

0.9%

RUS

2.8%

CA Trade Distributors

0.6%

CA Market


1 Year Return

-16.0%

RUS

10.2%

CA Trade Distributors

-7.5%

CA Market

Return vs Industry: RUS underperformed the Canadian Trade Distributors industry which returned 10.2% over the past year.

Return vs Market: RUS underperformed the Canadian Market which returned -7.5% over the past year.


Shareholder returns

RUSIndustryMarket
7 Day0.9%2.8%0.6%
30 Day-4.3%1.8%-1.1%
90 Day9.8%13.9%6.6%
1 Year-9.0%-16.0%14.1%10.2%-4.2%-7.5%
3 Year-18.4%-33.1%7.7%-1.7%10.0%-0.6%
5 Year16.8%-16.3%63.8%39.5%42.3%20.3%

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?

42.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RUS (CA$18.18) is trading above our estimate of fair value (CA$17.65)

Significantly Below Fair Value: RUS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RUS is poor value based on its PE Ratio (42.5x) compared to the CA Trade Distributors industry average (20.6x).

PE vs Market: RUS is poor value based on its PE Ratio (42.5x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RUS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RUS is overvalued based on its PB Ratio (1.2x) 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 6 analysts?

4.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RUS's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if RUS's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RUS's revenue (4.5% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: RUS's revenue (4.5% per year) is forecast to grow slower than 20% 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 (10%).


Next Steps

Past Performance

How has Russel Metals performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUS has high quality earnings.

Growing Profit Margin: RUS's current net profit margins (0.9%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: RUS's earnings have grown significantly by 28% 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 (-85.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (1.9%).


Return on Equity

High ROE: RUS's Return on Equity (2.9%) is considered low.


Next Steps

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$313.3M).

Long Term Liabilities: RUS's short term assets (CA$1.3B) exceed its long term liabilities (CA$580.2M).


Debt to Equity History and Analysis

Debt Level: RUS's debt to equity ratio (49.1%) is considered high.

Reducing Debt: RUS's debt to equity ratio has reduced from 49.3% to 49.1% over the past 5 years.

Debt Coverage: RUS's debt is well covered by operating cash flow (85.3%).

Interest Coverage: RUS's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

8.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RUS's dividend (8.36%) is higher than the bottom 25% of dividend payers in the Canadian market (1.77%).

High Dividend: RUS's dividend (8.36%) is in the top 25% of dividend payers in the Canadian market (5.72%)


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 (355.3%), RUS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RUS's dividends in 3 years are not forecast to be well covered by earnings (101.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

John Reid (51 yo)

2.33yrs

Tenure

CA$3,815,721

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 ($USD2.90M) is above average for companies of similar size in the Canadian market ($USD1.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Reid
CEO, President & Director2.33yrsCA$3.82m0.33%
CA$ 3.8m
Ryan MacDermid
Vice President of Risk Management & Legal5.5yrsCA$521.83k0.0067%
CA$ 75.4k
Marion Britton
Executive Vice President0.17yrCA$1.43m0.29%
CA$ 3.3m
Martin Juravsky
Chief Financial Officer0.17yrno data0.022%
CA$ 245.4k
Lesley M. Coleman
VP, Controller & Assistant Secretary15.67yrsCA$288.79k0.085%
CA$ 957.9k
Sherri McKelvey
Assistant Secretaryno datano data0.0031%
CA$ 35.3k

2.3yrs

Average Tenure

Experienced Management: RUS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Reid
CEO, President & Director2.33yrsCA$3.82m0.33%
CA$ 3.8m
John Tulloch
Independent Director7.33yrsCA$191.00k0.032%
CA$ 363.6k
Brian Hedges
Non-Independent Director11.33yrsCA$171.50k0.23%
CA$ 2.6m
William O'Reilly
Independent Director11.33yrsCA$183.50k0.039%
CA$ 441.8k
James Dinning
Independent Chair of the Board6.33yrsCA$295.00k0.059%
CA$ 672.7k
John Clark
Independent Director8.33yrsCA$189.50k0.0048%
CA$ 54.5k
Alice Laberge
Independent Director13.17yrsCA$176.00k0.014%
CA$ 161.8k
Alain Benedetti
Independent Director14.58yrsCA$188.00k0.013%
CA$ 141.8k
Annie Thabet
Independent Director2.67yrsCA$176.00k0.027%
CA$ 299.8k

8.3yrs

Average Tenure

66yo

Average Age

Experienced Board: RUS's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$1.131b
  • Shares outstanding: 62.18m
  • 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., a metals distribution company, distributes steel and other metal products in North America. The company operates in three segments: Metal Service Centers, Energy Products, and Steel Dis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:09
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.