Reliance Steel & Aluminum
Market Cap
US$10.9b
Last Updated
2021/05/17 22:28 UTC
Data Sources
Company Financials +
Executive Summary
Reliance Steel & Aluminum Co. operates as a metals service center company. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 5.6% per year for the next 3 years
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RS's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-2.9%
RS
2.7%
US Metals and Mining
-0.6%
US Market
1 Year Return
82.5%
RS
100.5%
US Metals and Mining
46.0%
US Market
Return vs Industry: RS underperformed the US Metals and Mining industry which returned 101% over the past year.
Return vs Market: RS exceeded the US Market which returned 50.8% over the past year.
Shareholder returns
| RS | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.9% | 2.7% | -0.6% |
| 30 Day | 9.4% | 12.5% | -1.8% |
| 90 Day | 33.8% | 25.8% | 0.2% |
| 1 Year | 86.6%82.5% | 104.9%100.5% | 48.4%46.0% |
| 3 Year | 93.7%80.7% | 63.2%52.4% | 60.5%50.4% |
| 5 Year | 163.6%135.0% | 164.9%141.3% | 125.9%100.9% |
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
1 week ago | Simply Wall St
Is Reliance Steel & Aluminum Co.'s (NYSE:RS) Recent Stock Performance Influenced By Its Fundamentals In Any Way?1 month ago | Simply Wall St
Did You Participate In Any Of Reliance Steel & Aluminum's (NYSE:RS) Fantastic 137% Return ?1 month ago | Simply Wall St
Reliance Steel & Aluminum (NYSE:RS) Has A Pretty Healthy Balance SheetValuation
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
2.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RS ($170.6) is trading below our estimate of fair value ($174.8)
Significantly Below Fair Value: RS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RS's PE Ratio (18.9x) is in line with the US Metals and Mining industry average.
PE vs Market: RS is good value based on its PE Ratio (18.9x) compared to the US market (19.8x).
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 (2x) compared to the US Metals and Mining industry average (2.5x).
Future Growth
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-5.6%
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 (-5.6% per year).
Earnings vs Market: RS's earnings are forecast to decline over the next 3 years (-5.6% 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 (-0.7% per year).
High Growth Revenue: RS's revenue is forecast to decline over the next 3 years (-0.7% 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 (10.5%).
Past Performance
How has Reliance Steel & Aluminum performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has high quality earnings.
Growing Profit Margin: RS's current net profit margins (6.3%) are higher than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: RS's earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: RS's earnings growth over the past year (0.2%) is below its 5-year average (9.4% per year).
Earnings vs Industry: RS earnings growth over the past year (0.2%) underperformed the Metals and Mining industry 37%.
Return on Equity
High ROE: RS's Return on Equity (10.8%) is considered low.
Financial Health
How is Reliance Steel & Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: RS's short term assets ($3.6B) exceed its short term liabilities ($823.7M).
Long Term Liabilities: RS's short term assets ($3.6B) exceed its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (30.8%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 52.8% to 30.8% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (70.8%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (13.6x coverage).
Balance Sheet
Dividend
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
1.61%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RS's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: RS's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.42%).
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 (28.4%), 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 (24.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Jim Hoffman (61 yo)
2.33yrs
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 ($USD11.20M).
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 seasoned and experienced (6 years average tenure).
Board Members
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$10.866b
- Shares outstanding: 63.71m
- 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
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 | 2021/05/17 22:28 |
| End of Day Share Price | 2021/05/17 00:00 |
| Earnings | 2021/03/31 |
| 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.