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RS

Reliance Steel & AluminumNYSE:RS Stock Report

Last Price

US$160.73

Market Cap

US$10.1b

7D

-2.9%

1Y

28.2%

Updated

20 Jan, 2022

Data

Company Financials +
RS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

RS Stock Overview

Reliance Steel & Aluminum Co. operates as a metals service center company.

Reliance Steel & Aluminum Competitors

Nucor

NYSE:NUE

US$28.4b

Steel Dynamics

NasdaqGS:STLD

US$11.7b

Cleveland-Cliffs

NYSE:CLF

US$9.8b

United States Steel

NYSE:X

US$6.1b

Price History & Performance

Summary of all time highs, changes and price drops for Reliance Steel & Aluminum
Historical stock prices
Current Share PriceUS$160.73
52 Week HighUS$181.21
52 Week LowUS$114.26
Beta0.99
1 Month Change3.42%
3 Month Change7.66%
1 Year Change28.16%
3 Year Change110.21%
5 Year Change96.61%
Change since IPO4,350.99%

Recent News & Updates

Jan 18
Reliance Steel & Aluminum (NYSE:RS) Shareholders Will Want The ROCE Trajectory To Continue

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...

Jan 10

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.

Dec 22

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.

Dec 20
Estimating The Intrinsic Value Of Reliance Steel & Aluminum Co. (NYSE:RS)

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

RSUS Metals and MiningUS Market
7D-2.9%-2.3%-4.6%
1Y28.2%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

Is RS's price volatile compared to industry and market?
RS volatility
RS Average Weekly Movement3.9%
Metals and Mining Industry Average Movement8.6%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
193912,800Jim Hoffmanhttps://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

How do Reliance Steel & Aluminum's earnings and revenue compare to its market cap?
RS fundamental statistics
Market CapUS$10.07b
Earnings (TTM)US$1.12b
Revenue (TTM)US$12.24b

9.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RS income statement (TTM)
RevenueUS$12.24b
Cost of RevenueUS$8.29b
Gross ProfitUS$3.95b
ExpensesUS$2.83b
EarningsUS$1.12b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)17.90
Gross Margin32.27%
Net Profit Margin9.16%
Debt/Equity Ratio28.1%

How did RS perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

15%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:55
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.