| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
RS Stock Overview
Reliance Steel & Aluminum Co. operates as a metals service center company.
Reliance Steel & Aluminum Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$160.73 |
| 52 Week High | US$181.21 |
| 52 Week Low | US$114.26 |
| Beta | 0.99 |
| 1 Month Change | 3.42% |
| 3 Month Change | 7.66% |
| 1 Year Change | 28.16% |
| 3 Year Change | 110.21% |
| 5 Year Change | 96.61% |
| Change since IPO | 4,350.99% |
Recent News & Updates
Reliance Steel & Aluminum (NYSE:RS) Shareholders Will Want The ROCE Trajectory To Continue
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Reliance Steel & Aluminum: Still Creating Value, Still A Buy
Challenged business segments provide opportunity for future upside. Company culture should lead to more growth and opportunity. Valuation has improved and makes the company more attractive than last year.
Reliance Steel: Not For Long-Term Holders
Good earnings have caused share price gains to possibly overshoot. Reliance Steel is in a cyclical industry, and may currently be around the top of a cycle. Now is likely not the best time to buy Reliance Steel shares with a view to a long-term hold.
Estimating The Intrinsic Value Of Reliance Steel & Aluminum Co. (NYSE:RS)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Reliance Steel...
Shareholder Returns
| RS | US Metals and Mining | US Market | |
|---|---|---|---|
| 7D | -2.9% | -2.3% | -4.6% |
| 1Y | 28.2% | 18.7% | 7.7% |
Return vs Industry: RS exceeded the US Metals and Mining industry which returned 18.7% over the past year.
Return vs Market: RS exceeded the US Market which returned 7.7% over the past year.
Price Volatility
| RS volatility | |
|---|---|
| RS Average Weekly Movement | 3.9% |
| Metals and Mining Industry Average Movement | 8.6% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: RS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RS's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1939 | 12,800 | Jim Hoffman | https://www.rsac.com |
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.
Reliance Steel & Aluminum Fundamentals Summary
| RS fundamental statistics | |
|---|---|
| Market Cap | US$10.07b |
| Earnings (TTM) | US$1.12b |
| Revenue (TTM) | US$12.24b |
9.0x
P/E Ratio0.8x
P/S RatioIs RS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RS income statement (TTM) | |
|---|---|
| Revenue | US$12.24b |
| Cost of Revenue | US$8.29b |
| Gross Profit | US$3.95b |
| Expenses | US$2.83b |
| Earnings | US$1.12b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 17.90 |
| Gross Margin | 32.27% |
| Net Profit Margin | 9.16% |
| Debt/Equity Ratio | 28.1% |
How did RS perform over the long term?
See historical performance and comparisonDividends
1.7%
Current Dividend Yield15%
Payout RatioValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
9.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RS ($160.73) is trading below our estimate of fair value ($177.09)
Significantly Below Fair Value: RS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RS is poor value based on its PE Ratio (9x) compared to the US Metals and Mining industry average (8.9x).
PE vs Market: RS is good value based on its PE Ratio (9x) compared to the US market (16.9x).
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 good value based on its PB Ratio (1.7x) compared to the US Metals and Mining industry average (2.2x).
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-21.2%
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 (-21.2% per year).
Earnings vs Market: RS's earnings are forecast to decline over the next 3 years (-21.2% 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 (-3.3% per year).
High Growth Revenue: RS's revenue is forecast to decline over the next 3 years (-3.3% 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 (12%).
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has high quality earnings.
Growing Profit Margin: RS's current net profit margins (9.2%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: RS's earnings growth over the past year (176.8%) exceeds its 5-year average (12% per year).
Earnings vs Industry: RS earnings growth over the past year (176.8%) exceeded the Metals and Mining industry 125.5%.
Return on Equity
High ROE: RS's Return on Equity (19.2%) is considered low.
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($4.3B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: RS's short term assets ($4.3B) exceed its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: RS's net debt to equity ratio (17.2%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 50.7% to 28.1% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (38.6%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (24.7x coverage).
Balance Sheet
Dividend
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
1.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RS's dividend (1.71%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: RS's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 (15.2%), 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 (23.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Jim Hoffman (62 yo)
3yrs
Tenure
US$13,100,453
Compensation
Mr. James D. Hoffman, also known as Jim, has been the Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. He served as President...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD13.10M) is about average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RS's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: RS's board of directors are considered experienced (5.3 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 employee growth, exchange listings and data sources
Key Information
- Name: Reliance Steel & Aluminum Co.
- Ticker: RS
- Exchange: NYSE
- Founded: 1939
- Industry: Steel
- Sector: Materials
- Implied Market Cap: US$10.070b
- Shares outstanding: 62.65m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 23:55 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.