Reliance Steel & Aluminum Co. operates as a metals service center company. More Details
Flawless balance sheet established dividend payer.
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 +/- 5% a week.
Volatility Over Time: RS's weekly volatility (5%) has been stable over the past year.
7 Day Return
US Metals and Mining
1 Year Return
US Metals and Mining
Return vs Industry: RS underperformed the US Metals and Mining industry which returned 92.2% over the past year.
Return vs Market: RS exceeded the US Market which returned 55.3% over the past year.
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 StReliance Steel & Aluminum (NYSE:RS) Has A Pretty Healthy Balance Sheet
3 weeks ago | Simply Wall StHow Much Of Reliance Steel & Aluminum Co. (NYSE:RS) Do Institutions Own?
1 month ago | Simply Wall StReliance Steel & Aluminum Co. (NYSE:RS) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RS ($154.26) is trading above our estimate of fair value ($125.67)
Significantly Below Fair Value: RS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RS is poor value based on its PE Ratio (26.9x) compared to the US Metals and Mining industry average (18.6x).
PE vs Market: RS is poor value based on its PE Ratio (26.9x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: RS is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: RS is good value based on its PB Ratio (1.9x) compared to the US Metals and Mining industry average (2.4x).
How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RS's forecast earnings growth (15.8% per year) is above the savings rate (2%).
Earnings vs Market: RS's earnings (15.8% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: RS's earnings are forecast to grow, but not significantly.
Revenue vs Market: RS's revenue (4.9% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: RS's revenue (4.9% 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%).
How has Reliance Steel & Aluminum performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RS has a large one-off loss of $157.8M 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.
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 ($2.4B).
Debt to Equity History and Analysis
Debt Level: RS's debt to equity ratio (32.1%) is considered satisfactory.
Reducing Debt: RS's debt to equity ratio has reduced from 49% to 32.1% over the past 5 years.
Debt Coverage: RS's debt is well covered by operating cash flow (71.3%).
Interest Coverage: RS's interest payments on its debt are well covered by EBIT (11.2x coverage).
What is Reliance Steel & Aluminum current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RS's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: RS's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: RS's dividends per share have been stable in the past 10 years.
Growing Dividend: RS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.6%), RS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RS's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Hoffman (61 yo)
Mr. James D. Hoffman, also known as Jim, has been the Chief Executive Officer of Reliance Steel & Aluminum Co. since January 1, 2019 and has been its Director since October 22, 2019. He served as President...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD13.77M) is about average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: RS's management team is seasoned and experienced (6 years average tenure).
Experienced Board: RS's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reliance Steel & Aluminum Co.'s company bio, employee growth, exchange listings and data sources
- Name: Reliance Steel & Aluminum Co.
- Ticker: RS
- Exchange: NYSE
- Founded: 1939
- Industry: Steel
- Sector: Materials
- Market Cap: US$9.828b
- Shares outstanding: 63.71m
- Website: https://www.rsac.com
Number of Employees
- Reliance Steel & Aluminum Co.
- 350 South Grand Avenue
- Suite 5100
- Los Angeles
- United States
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||2021/04/11 22:06|
|End of Day Share Price||2021/04/09 00:00|
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.