NYSE:RS

Stock Analysis Report

Reliance Steel & Aluminum

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

RSIndustryMarket
7 Day0.09%0.7%0.9%
30 Day16.6%6.3%4.5%
90 Day18.0%9.6%6.2%
1 Year50.2%46.8%6.5%3.3%19.4%16.8%
3 Year50.8%40.6%0.2%-5.0%47.5%38.0%
5 Year99.5%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

Valuation

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

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.0%

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

SellUS$325,15230 Jul 19
Arthur Ajemyan
EntityIndividual
Role
Controller
VP & Corporate Controller
Shares3,200
Max PriceUS$101.61
SellUS$246,87606 May 19
Jeffrey Durham
EntityIndividual
Shares2,675
Max PriceUS$92.29
SellUS$2,295,25006 May 19
Gregg Mollins
EntityIndividual
Role
Senior Key Executive
Senior Advisor to the CEO
Shares25,000
Max PriceUS$91.81
SellUS$1,038,32901 May 19
Stephen Koch
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares11,333
Max PriceUS$91.62
SellUS$676,09701 May 19
Michael Shanley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares7,385
Max PriceUS$91.55
SellUS$776,65105 Mar 19
Karla McDowell
EntityIndividual
Shares8,652
Max PriceUS$90.01
SellUS$4,403,52105 Mar 19
Gregg Mollins
EntityIndividual
Role
Senior Key Executive
Senior Advisor to the CEO
Shares49,290
Max PriceUS$89.51
SellUS$526,19101 Mar 19
William Smith
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,899
Max PriceUS$89.20
SellUS$274,15627 Feb 19
William Smith
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares3,025
Max PriceUS$90.63
SellUS$853,49427 Feb 19
Gregg Mollins
EntityIndividual
Role
Senior Key Executive
Senior Advisor to the CEO
Shares9,478
Max PriceUS$90.05
SellUS$803,79927 Feb 19
Michael Shanley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares8,870
Max PriceUS$90.62
SellUS$2,246,40026 Nov 18
David Hannah
EntityIndividual
Role
Member of the Board of Directors
Director
Shares28,080
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1994
RS6DB (Deutsche Boerse AG)YesCommon StockDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:43
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.