Reliance Steel & Aluminum
Market Cap
US$7.6b
Last Updated
2020/12/04 23:09 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Steel & Aluminum Co. operates as a metals service center company. More Details
Rewards
Risk Analysis
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
0.2%
RS
2.6%
US Metals and Mining
0.9%
US Market
1 Year Return
1.1%
RS
30.7%
US Metals and Mining
22.1%
US Market
Return vs Industry: RS underperformed the US Metals and Mining industry which returned 30.7% over the past year.
Return vs Market: RS underperformed the US Market which returned 22.1% over the past year.
Shareholder returns
| RS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 2.6% | 0.9% |
| 30 Day | 12.3% | 7.0% | 10.2% |
| 90 Day | 12.6% | 14.0% | 9.7% |
| 1 Year | 3.5%1.1% | 33.6%30.7% | 24.8%22.1% |
| 3 Year | 56.9%46.3% | 31.5%22.8% | 48.6%38.7% |
| 5 Year | 140.3%113.8% | 152.5%128.5% | 99.6%77.6% |
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
2 weeks ago | Simply Wall St
Here's What We Like About Reliance Steel & Aluminum's (NYSE:RS) Upcoming Dividend4 weeks ago | Simply Wall St
We're Watching These Trends At Reliance Steel & Aluminum (NYSE:RS)1 month ago | Simply Wall St
Here's What Analysts Are Forecasting For Reliance Steel & Aluminum Co. (NYSE:RS) After Its Third-Quarter ResultsValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
19.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RS ($121.53) is trading above our estimate of fair value ($51.61)
Significantly Below Fair Value: RS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RS's PE Ratio (19.5x) is in line with the US Metals and Mining industry average.
PE vs Market: RS's PE Ratio (19.5x) is in line with the US market.
Price to Earnings Growth Ratio
PEG Ratio: RS is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: RS's PB Ratio (1.5x) is in line with the US Metals and Mining industry average.
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?
26.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RS's forecast earnings growth (26.7% per year) is above the savings rate (2.2%).
Earnings vs Market: RS's earnings (26.7% per year) are forecast to grow faster than the US market (21.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RS's revenue (5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: RS's revenue (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%).
Next Steps
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
14.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has a large one-off loss of $157.7M impacting its September 30 2020 financial results.
Growing Profit Margin: RS's current net profit margins (4.4%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 14.3% 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 (-34.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-12.4%).
Return on Equity
High ROE: RS's Return on Equity (8.1%) is considered low.
Next Steps
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($3.0B) exceed its short term liabilities ($601.9M).
Long Term Liabilities: RS's short term assets ($3.0B) exceed its long term liabilities ($2.3B).
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (32.6%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 53% to 32.6% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (78.5%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (11.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
2.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RS's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.49%).
High Dividend: RS's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (4.1%).
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 (39%), 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 (30.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.0yrs
Average management tenure
CEO
Jim Hoffman (61 yo)
1.92yrs
Tenure
US$13,770,002
Compensation
Mr. James D. Hoffman, also known as Jim, has been the President and Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. Mr. Hoff...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD13.77M) is above average for companies of similar size in the US market ($USD7.03M).
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 |
|---|---|---|---|---|
| President | 1.92yrs | US$13.77m | 0.080% $ 6.1m | |
| Senior EVP & CFO | 21.92yrs | US$9.80m | 0.12% $ 9.0m | |
| Executive Vice President of Operations | 5.58yrs | US$6.20m | 0.19% $ 14.8m | |
| Senior Vice President of Operations | 10.67yrs | US$3.86m | 0.0029% $ 217.8k | |
| Senior Vice President of Operations | 5.67yrs | US$3.87m | 0.045% $ 3.4m | |
| VP & Chief Information Officer | 1.42yrs | no data | no data | |
| Senior VP | 7.58yrs | no data | 0.040% $ 3.1m | |
| Vice President of Health & Human Resources | 9.33yrs | no data | no data | |
| Senior Vice President of Operations | 1.92yrs | no data | 0.026% $ 1.9m | |
| VP & Corporate Controller | 8.33yrs | no data | 0.019% $ 1.5m | |
| Vice President of Benefits | 9.58yrs | no data | no data | |
| Vice President of Corporate Initiatives | 13.58yrs | no data | no data |
8.0yrs
Average Tenure
57yo
Average Age
Experienced Management: RS's management team is seasoned and experienced (8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.92yrs | US$13.77m | 0.080% $ 6.1m | |
| Director | 28.92yrs | US$259.99k | 0.13% $ 9.7m | |
| Independent Non-Executive Chairman of the Board | 4.42yrs | US$409.99k | 0.044% $ 3.3m | |
| Independent Director | 4.17yrs | US$274.99k | 0.0095% $ 725.9k | |
| Independent Director | 13.42yrs | US$259.99k | 0.035% $ 2.7m | |
| Independent Director | 10.17yrs | US$279.99k | 0.028% $ 2.1m | |
| Independent Director | 4.17yrs | US$259.99k | 0.0095% $ 725.9k | |
| Independent Director | 8.42yrs | US$284.99k | 0.020% $ 1.6m | |
| Independent Director | 5.17yrs | US$259.99k | 0.033% $ 2.5m | |
| Independent Director | 1.17yrs | US$32.50k | 0.0022% $ 169.9k |
4.8yrs
Average Tenure
62yo
Average Age
Experienced Board: RS's board of directors are considered experienced (4.8 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$7.617b
- Shares outstanding: 63.76m
- 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 | 2020/12/04 23:09 |
| End of Day Share Price | 2020/12/04 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.