Reliance Steel & Aluminum
Market Cap
US$5.6b
Last Updated
2020/03/30 01:47 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Steel & Aluminum Co. operates as a metals service center company.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.1% per year for the next 3 years
Snowflake Analysis
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
16.8%
RS
11.6%
US Metals and Mining
12.5%
US Market
1 Year Return
-9.4%
RS
-29.3%
US Metals and Mining
-12.7%
US Market
Return vs Industry: RS exceeded the US Metals and Mining industry which returned -29.3% over the past year.
Return vs Market: RS exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| RS | Industry | Market | |
|---|---|---|---|
| 7 Day | 16.8% | 11.6% | 12.5% |
| 30 Day | -18.4% | -18.7% | -14.7% |
| 90 Day | -30.3% | -33.1% | -21.5% |
| 1 Year | -7.3%-9.4% | -27.3%-29.3% | -10.9%-12.7% |
| 3 Year | 12.3%4.6% | -25.4%-29.6% | 12.6%5.4% |
| 5 Year | 53.4%36.2% | -6.3%-13.8% | 31.9%17.5% |
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
What Is Reliance Steel & Aluminum's (NYSE:RS) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
Be Sure To Check Out Reliance Steel & Aluminum Co. (NYSE:RS) Before It Goes Ex-Dividend4 weeks ago | Simply Wall St
Results: Reliance Steel & Aluminum Co. Beat Earnings Expectations And Analysts Now Have New ForecastsValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
27.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RS ($83.42) is trading below our estimate of fair value ($115.31)
Significantly Below Fair Value: RS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RS is poor value based on its PE Ratio (8x) compared to the Metals and Mining industry average (7.8x).
PE vs Market: RS is good value based on its PE Ratio (8x) compared to the US market (13x).
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 (1.1x) compared to the US Metals and Mining industry average (1.1x).
Next Steps
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-5.1%
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 (-5.1% per year).
Earnings vs Market: RS's earnings are forecast to decline over the next 3 years (-5.1% per year).
High Growth Earnings: RS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RS's revenue is expected to decline over the next 3 years (-1% per year).
High Growth Revenue: RS's revenue is forecast to decline over the next 3 years (-1% 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 (10.4%).
Next Steps
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
19.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has high quality earnings.
Growing Profit Margin: RS's current net profit margins (6.4%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 19.1% per year over the past 5 years.
Accelerating Growth: RS's earnings growth over the past year (10.7%) is below its 5-year average (19.1% per year).
Earnings vs Industry: RS earnings growth over the past year (10.7%) exceeded the Metals and Mining industry -26.9%.
Return on Equity
High ROE: RS's Return on Equity (13.5%) is considered low.
Next Steps
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($3.0B) exceed its short term liabilities ($675.3M).
Long Term Liabilities: RS's short term assets ($3.0B) exceed its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (30.5%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 55.8% to 30.5% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (81.9%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (11.9x 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?
3.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RS's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: RS's dividend (3%) is low compared to the top 25% of dividend payers in the US market (5.49%).
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 (21%), 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 (27.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Jim Hoffman (60yo)
1.17s
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 below average for companies of similar size in the US market ($USD7.36M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$4.99m | 0.076% $4.2m | |
| Senior EVP & CFO | 21.17yrs | US$4.35m | 0.11% $6.3m | |
| Executive Vice President of Operations | 4.83yrs | US$4.02m | 0.18% $10.3m | |
| Senior Vice President of Operations | 4.92yrs | US$3.38m | 0.049% $2.7m | |
| VP & Chief Information Officer | 0.67yr | no data | no data | |
| Senior VP | 6.83yrs | no data | 0.039% $2.2m | |
| Vice President of Health & Human Resources | 8.58yrs | no data | no data | |
| Senior Vice President of Operations | 9.92yrs | US$2.74m | 0.017% $954.3k | |
| VP & Corporate Controller | 7.58yrs | no data | 0.018% $1.0m | |
| Vice President of Benefits | 8.83yrs | no data | no data |
7.2yrs
Average Tenure
60yo
Average Age
Experienced Management: RS's management team is seasoned and experienced (7.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.17yrs | US$4.99m | 0.076% $4.2m | |
| Director | 28.17yrs | US$259.99k | 0.12% $6.6m | |
| Non-Executive Chairman of the Board | 3.67yrs | US$409.99k | 0.039% $2.2m | |
| Independent Director | 3.42yrs | US$259.99k | 0.0070% $388.2k | |
| Independent Director | 12.67yrs | US$271.99k | 0.032% $1.8m | |
| Independent Director | 9.42yrs | US$276.99k | 0.024% $1.4m | |
| Independent Director | 3.42yrs | US$259.99k | 0.0070% $388.2k | |
| Independent Director | 7.67yrs | US$281.99k | 0.017% $969.9k | |
| Independent Director | 4.42yrs | US$259.99k | 0.029% $1.6m | |
| Independent Director | 0.42yr | no data | no data |
4.0yrs
Average Tenure
61yo
Average Age
Experienced Board: RS's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RS insiders have only sold shares 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
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$5.578b
- Shares outstanding: 66.86m
- 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 |
| RS6 | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | 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 processing services to general manufacturing, non-residential construction, transportation, aerospace and defense, energy, electronics and semiconductor fabrication, and heavy industries. It also offers precision sheet metal fabrication services, including laser cutting, stamping, turret punching, machining, and powder coating and welding; and toll processing and logistics services. In addition, the company manufactures metal parts that have applications in various end markets, including industrial machinery, automotive, aerospace, sugar products, and consumer electronics manufacturers. As of December 31, 2019, it operated approximately 300 metals service center processing and distribution facilities in 40 states in the United States and 13 in other countries. The company sells its products directly to large original equipment manufacturers, and small machine shops and fabricators, as well as through www.fastmetals.com, an e-commerce platform. It operates in the United States, Australia, Belgium, Canada, China, France, India, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates, and the United Kingdom. Reliance Steel & Aluminum Co. was founded in 1939 and is headquartered in Los Angeles, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 01:47 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.