Reliance Steel & Aluminum Co. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally.
Reliance Steel & Aluminum Co. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally. The company distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products; and provides metals processing services to general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries. It also distributes non-ferrous metals products and tubular building products; and manufactures specialty extruded metals, fabricated parts, and welded components.
Reliance Steel & Aluminum Fundamentals Summary
How do Reliance Steel & Aluminum's earnings and revenue compare to its market cap?
Is RS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RS?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for RS. This is calculated by dividing RS's market cap by their current
preferred multiple.
What is RS's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
US$11.46b
RS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: RS is good value based on its Price-To-Earnings Ratio (6x) compared to the US Metals and Mining industry average (8.6x)
Price to Earnings Ratio vs Fair Ratio
What is RS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
RS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
6x
Fair PE Ratio
10.4x
Price-To-Earnings vs Fair Ratio: RS is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).
Share Price vs Fair Value
What is the Fair Price of RS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RS ($190.06) is trading below our estimate of fair value ($349)
Significantly Below Fair Value: RS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-16.0%
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 (-16% per year).
Earnings vs Market: RS's earnings are forecast to decline over the next 3 years (-16% 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 (-6.5% per year).
High Growth Revenue: RS's revenue is forecast to decline over the next 3 years (-6.5% 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 (14.6%).
Discover growth companies
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
Past Performance Score
6/6
Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
22.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has high quality earnings.
Growing Profit Margin: RS's current net profit margins (11.3%) are higher than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown significantly by 22.7% per year over the past 5 years.
Accelerating Growth: RS's earnings growth over the past year (132.4%) exceeds its 5-year average (22.7% per year).
Earnings vs Industry: RS earnings growth over the past year (132.4%) exceeded the Metals and Mining industry 65.5%.
Return on Equity
High ROE: RS's Return on Equity (27.9%) is considered high.
Discover strong past performing companies
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Health Score
6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($5.0B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: RS's short term assets ($5.0B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: RS's net debt to equity ratio (16.7%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 47.4% to 24% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (73.4%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (42.2x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
Dividend Score
5/6
Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.84%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RS's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: RS's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (4.08%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (10.2%), RS's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (22.4%), RS's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Jim Hoffman (63 yo)
3.58yrs
Tenure
US$14,245,016
Compensation
Mr. James D. Hoffman, also known as Jim, has been the Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. He served as President...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD14.25M) is about average for companies of similar size in the US market ($USD12.91M).
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 (3.1 years average tenure).
Board Members
Experienced Board: RS's board of directors are considered experienced (4.3 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
Reliance Steel & Aluminum Co.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/09 00:00
End of Day Share Price
2022/08/09 00:00
Earnings
2022/06/30
Annual Earnings
2021/12/31
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.