Reliance Steel & Aluminum
Market Cap
US$8.8b
Last Updated
2021/02/24 23:33 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Steel & Aluminum Co. operates as a metals service center company. More Details
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 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.
Market Performance
7 Day Return
10.2%
RS
6.6%
US Metals and Mining
-2.5%
US Market
1 Year Return
27.2%
RS
69.5%
US Metals and Mining
34.1%
US Market
Return vs Industry: RS underperformed the US Metals and Mining industry which returned 66% over the past year.
Return vs Market: RS underperformed the US Market which returned 32.2% over the past year.
Shareholder returns
| RS | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.2% | 6.6% | -2.5% |
| 30 Day | 10.0% | 9.5% | 0.1% |
| 90 Day | 13.8% | 24.5% | 4.5% |
| 1 Year | 30.3%27.2% | 73.6%69.5% | 37.1%34.1% |
| 3 Year | 64.4%53.3% | 37.5%28.1% | 58.0%47.9% |
| 5 Year | 135.9%109.9% | 178.5%152.8% | 131.9%106.2% |
Long-Term 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
19 hours ago | Simply Wall St
Our Take On The Returns On Capital At Reliance Steel & Aluminum (NYSE:RS)1 week ago | Simply Wall St
An Intrinsic Calculation For Reliance Steel & Aluminum Co. (NYSE:RS) Suggests It's 31% UndervaluedValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
24.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RS ($135.54) is trading above our estimate of fair value ($117.28)
Significantly Below Fair Value: RS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RS is good value based on its PE Ratio (23.6x) compared to the US Metals and Mining industry average (23.7x).
PE vs Market: RS is poor value based on its PE Ratio (23.6x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: RS is poor value based on its PEG Ratio (1.5x)
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 (2.4x).
Next Steps
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
16.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RS's forecast earnings growth (16% per year) is above the savings rate (2%).
Earnings vs Market: RS's earnings (16% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: RS's earnings are forecast to grow, but not significantly.
Revenue vs Market: RS's revenue (4.8% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: RS's revenue (4.8% 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 (10.4%).
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Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
11.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has a large one-off loss of $146.2M impacting its December 31 2020 financial results.
Growing Profit Margin: RS's current net profit margins (4.2%) are lower than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 11% 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 (-47.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-5%).
Return on Equity
High ROE: RS's Return on Equity (7.3%) is considered low.
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Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($3.1B) exceed its short term liabilities ($613.0M).
Long Term Liabilities: RS's short term assets ($3.1B) exceed its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (32.1%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 49% to 32.1% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (71.3%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (11.3x coverage).
Balance Sheet
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Dividend
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
1.99%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RS's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: RS's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.75%).
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 reasonably low payout ratio (43.6%), 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 (26.6% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Jim Hoffman (61 yo)
2.08yrs
Tenure
US$13,770,002
Compensation
Mr. James D. Hoffman, also known as Jim, has been the Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. He served as President...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD13.77M) is above average for companies of similar size in the US market ($USD6.22M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.08yrs | US$13.77m | 0.088% $ 7.8m | |
| President & Director | 0.083yr | US$9.80m | 0.12% $ 10.4m | |
| Executive Vice President of Operations | 5.75yrs | US$6.20m | 0.19% $ 16.7m | |
| Senior Vice President of Operations | 10.83yrs | US$3.86m | 0.0029% $ 252.2k | |
| Senior Vice President of Operations | 5.83yrs | US$3.87m | 0.041% $ 3.6m | |
| CFO & VP | 0.083yr | no data | 0.016% $ 1.4m | |
| VP & Chief Information Officer | 1.58yrs | no data | no data | |
| Senior VP | 7.75yrs | no data | 0.036% $ 3.2m | |
| Vice President of Health & Human Resources | 9.5yrs | no data | no data | |
| Senior Vice President of Operations | 2.08yrs | no data | 0.025% $ 2.2m | |
| Vice President of Benefits | 9.75yrs | no data | no data | |
| Vice President of Corporate Initiatives | 13.75yrs | no data | no data |
5.8yrs
Average Tenure
56yo
Average Age
Experienced Management: RS's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.08yrs | US$13.77m | 0.088% $ 7.8m | |
| President & Director | 0.083yr | US$9.80m | 0.12% $ 10.4m | |
| Director | 29.08yrs | US$259.99k | 0.13% $ 11.2m | |
| Independent Non-Executive Chairman of the Board | 4.58yrs | US$409.99k | 0.044% $ 3.8m | |
| Independent Director | 4.33yrs | US$274.99k | 0.0096% $ 840.2k | |
| Independent Director | 13.58yrs | US$259.99k | 0.035% $ 3.1m | |
| Independent Director | 10.33yrs | US$279.99k | 0.028% $ 2.5m | |
| Independent Director | 4.33yrs | US$259.99k | 0.0096% $ 840.2k | |
| Independent Director | 8.58yrs | US$284.99k | 0.021% $ 1.8m | |
| Independent Director | 5.33yrs | US$259.99k | 0.033% $ 2.9m | |
| Independent Director | 1.33yrs | US$32.50k | 0.0022% $ 196.9k |
4.6yrs
Average Tenure
61yo
Average Age
Experienced Board: RS's board of directors are considered experienced (4.6 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$8.789b
- Shares outstanding: 63.60m
- 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 pro...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 23:33 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| 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.