Reliance Steel & Aluminum
Market Cap
US$7.8b
Last Updated
2019/11/19 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Steel & Aluminum Co. operates as a metals service center company.
Snowflake
Fundamentals
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Reliance Steel & Aluminum's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.09%
RS
0.7%
US Metals and Mining
0.9%
US Market
1 Year Return
46.8%
RS
3.3%
US Metals and Mining
16.8%
US Market
Return vs Industry: RS exceeded the US Metals and Mining industry which returned 3.3% over the past year.
Return vs Market: RS exceeded the US Market which returned 16.8% over the past year.
Shareholder returns
| RS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.09% | 0.7% | 0.9% |
| 30 Day | 16.6% | 6.3% | 4.5% |
| 90 Day | 18.0% | 9.6% | 6.2% |
| 1 Year | 50.2%46.8% | 6.5%3.3% | 19.4%16.8% |
| 3 Year | 50.8%40.6% | 0.2%-5.0% | 47.5%38.0% |
| 5 Year | 99.5%77.0% | 6.7%-1.7% | 62.0%44.1% |
Price Volatility Vs. Market
How volatile is Reliance Steel & Aluminum's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Reliance Steel & Aluminum Co. (NYSE:RS)'s Could Be A Buy For Its Upcoming Dividend3 weeks ago | Simply Wall St
Earnings Beat: Reliance Steel & Aluminum Co. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models1 month ago | Simply Wall St
Reliance Steel & Aluminum Co. (NYSE:RS) Is Employing Capital Very EffectivelyValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
12.59x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RS ($115.82) is trading above our estimate of fair value ($114.03)
Significantly Below Fair Value: RS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RS is poor value based on its PE Ratio (12.6x) compared to the Metals and Mining industry average (11.8x).
PE vs Market: RS is good value based on its PE Ratio (12.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: RS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RS is overvalued based on its PB Ratio (1.5x) compared to the US Metals and Mining industry average (1.3x).
Next Steps
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-1.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RS's earnings are forecast to decline over the next 3 years (-1.5% per year).
Earnings vs Market: RS's earnings are forecast to decline over the next 3 years (-1.5% per year).
High Growth Earnings: RS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RS's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: RS's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RS's Return on Equity is forecast to be low in 3 years time (10.2%).
Next Steps
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has high quality earnings.
Growing Profit Margin: RS's current net profit margins (5.5%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 18.8% per year over the past 5 years.
Accelerating Growth: RS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RS had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (0.7%).
Return on Equity
High ROE: RS's Return on Equity (12.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($3.2B) exceeds its short term liabilities ($788.5M)
Long Term Liabilities: RS's short term assets ($3.2B) exceeds its long term liabilities (2.3B)
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (32.3%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 56.4% to 32.3% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (84.3%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (10.2x coverage).
Balance Sheet
Inventory Level: RS has a high level of physical assets or inventory.
Debt Coverage by Assets: RS's debt is covered by short term assets (assets are 1.9x debt).
Next Steps
Dividend
What is Reliance Steel & Aluminum's current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RS's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: RS's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stability and Growth of Payments
Stable Dividend: RS's dividends per share have been stable in the past 10 years.
Growing Dividend: RS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.4%), RS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RS's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).
Next Steps
Management
What is the CEO of Reliance Steel & Aluminum's salary, the management and board of directors tenure and is there insider trading?
5.5yrs
Average management tenure
CEO
Jim Hoffman (60yo)
0.8yrs
Tenure
US$4,988,218
Compensation
Mr. James D. Hoffman, also known as Jim, has been the President and Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. Mr. Hoff ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD4.99M) is about average for companies of similar size in the US market ($USD6.77M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
5.5yrs
Average Tenure
60yo
Average Age
Experienced Management: RS's management team is seasoned and experienced (5.5 years average tenure).
Board Age and Tenure
3.7yrs
Average Tenure
61yo
Average Age
Experienced Board: RS's board of directors are considered experienced (3.7 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Controller VP & Corporate Controller |
| Shares | 3,200 |
| Max Price | US$101.61 |
| Entity | Individual |
| Shares | 2,675 |
| Max Price | US$92.29 |
| Entity | Individual |
| Role | Senior Key Executive Senior Advisor to the CEO |
| Shares | 25,000 |
| Max Price | US$91.81 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Operations |
| Shares | 11,333 |
| Max Price | US$91.62 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Operations |
| Shares | 7,385 |
| Max Price | US$91.55 |
| Entity | Individual |
| Shares | 8,652 |
| Max Price | US$90.01 |
| Entity | Individual |
| Role | Senior Key Executive Senior Advisor to the CEO |
| Shares | 49,290 |
| Max Price | US$89.51 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 5,899 |
| Max Price | US$89.20 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 3,025 |
| Max Price | US$90.63 |
| Entity | Individual |
| Role | Senior Key Executive Senior Advisor to the CEO |
| Shares | 9,478 |
| Max Price | US$90.05 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Operations |
| Shares | 8,870 |
| Max Price | US$90.62 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 28,080 |
| Max Price | US$80.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Gregg Mollins (64yo)
Senior Advisor to the CEO
- Tenure: 0.8yrs
- Compensation: US$12.57m
Bill Sales (62yo)
Executive Vice President of Operations
- Tenure: 4.5yrs
- Compensation: US$4.02m
Jim Hoffman (60yo)
President
- Tenure: 0.8yrs
- Compensation: US$4.99m
Will Smith (51yo)
Senior VP
- Tenure: 6.5yrs
Karla Lewis (53yo)
Senior EVP & CFO
- Tenure: 20.8yrs
- Compensation: US$4.35m
Don Prebola (64yo)
Vice President of Health
- Tenure: 8.3yrs
Steve Koch (52yo)
Senior Vice President of Operations
- Tenure: 9.6yrs
- Compensation: US$2.74m
Michael Shanley (61yo)
Senior Vice President of Operations
- Tenure: 4.6yrs
- Compensation: US$3.38m
Arthur Ajemyan (43yo)
VP & Corporate Controller
- Tenure: 7.3yrs
Suzanne Bonner
VP & Chief Information Officer
- Tenure: 0.3yrs
Board Members
David Hannah (67yo)
Director
- Tenure: 27.8yrs
- Compensation: US$259.99k
Mark Kaminski (63yo)
Non-Executive Chairman of the Board
- Tenure: 3.3yrs
- Compensation: US$409.99k
Doug Stotlar (58yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: US$259.99k
Jim Hoffman (60yo)
President
- Tenure: 0.8yrs
- Compensation: US$4.99m
Andrew Sharkey (72yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$271.99k
John Figueroa (56yo)
Independent Director
- Tenure: 9.1yrs
- Compensation: US$276.99k
Karen Colonias (62yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: US$259.99k
Sally Anderson (68yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$281.99k
Rob McEvoy (53yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$259.99k
Lisa Baldwin (51yo)
Independent Director
- Tenure: 0.08yrs
Company Information
Reliance Steel & Aluminum Co.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reliance Steel & Aluminum Co.
- Ticker: RS
- Exchange: NYSE
- Founded: 1939
- Industry: Steel
- Sector: Materials
- Market Cap: US$7.762b
- Shares outstanding: 66.66m
- Website: https://www.rsac.com
Number of Employees
Location
- Reliance Steel & Aluminum Co.
- 350 South Grand Avenue
- Suite 5100
- Los Angeles
- California
- 90071
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 1994 |
| RS6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1994 |
Biography
Reliance Steel & Aluminum Co. operates as a metals service center company. The company provides alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products and rel ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/19 23:43 |
| End of Day Share Price | 2019/11/19 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.