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Reliance Steel & Aluminum

NYSE:RS
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RS
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Reliance Steel & Aluminum Co. operates as a metals service center company. The last earnings update was 23 days ago. More info.


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RS Share Price and Events
7 Day Returns
-3.1%
NYSE:RS
-2.5%
US Metals and Mining
-1.4%
US Market
1 Year Returns
-8.5%
NYSE:RS
-29.3%
US Metals and Mining
1.6%
US Market
RS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Reliance Steel & Aluminum (RS) -3.1% -7% -4.8% -8.5% 15.1% 18.1%
US Metals and Mining -2.5% -9.9% -15.3% -29.3% 5.6% -19.4%
US Market -1.4% -3.9% 0.2% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • RS outperformed the Metals and Mining industry which returned -29.3% over the past year.
  • RS underperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
RS
Industry
5yr Volatility vs Market

Value

 Is Reliance Steel & Aluminum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Reliance Steel & Aluminum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Reliance Steel & Aluminum.

NYSE:RS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.947 (1 + (1- 21%) (41.55%))
1.173
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.173 * 5.96%)
9.72%

Discounted Cash Flow Calculation for NYSE:RS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Reliance Steel & Aluminum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:RS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.72%)
2019 715.00 Analyst x6 651.65
2020 641.67 Analyst x6 532.99
2021 491.67 Analyst x3 372.21
2022 515.50 Analyst x2 355.67
2023 530.00 Analyst x1 333.28
2024 513.13 Est @ -3.18% 294.08
2025 505.90 Est @ -1.41% 264.25
2026 505.06 Est @ -0.17% 240.43
2027 508.60 Est @ 0.7% 220.67
2028 515.27 Est @ 1.31% 203.75
Present value of next 10 years cash flows $3,468.97
NYSE:RS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $515.27 × (1 + 2.73%) ÷ (9.72% – 2.73%)
$7,570.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,570.52 ÷ (1 + 9.72%)10
$2,993.55
NYSE:RS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,468.97 + $2,993.55
$6,462.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,462.52 / 67.24
$96.12
NYSE:RS Discount to Share Price
Calculation Result
Value per share (USD) From above. $96.12
Current discount Discount to share price of $84.97
= -1 x ($84.97 - $96.12) / $96.12
11.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Reliance Steel & Aluminum is available for.
Intrinsic value
12%
Share price is $84.97 vs Future cash flow value of $96.12
Current Discount Checks
For Reliance Steel & Aluminum to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Reliance Steel & Aluminum's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Reliance Steel & Aluminum's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Reliance Steel & Aluminum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Reliance Steel & Aluminum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $9.33
NYSE:RS Share Price ** NYSE (2019-05-24) in USD $84.97
United States of America Metals and Mining Industry PE Ratio Median Figure of 46 Publicly-Listed Metals and Mining Companies 9.23x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.44x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Reliance Steel & Aluminum.

NYSE:RS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RS Share Price ÷ EPS (both in USD)

= 84.97 ÷ 9.33

9.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reliance Steel & Aluminum is good value based on earnings compared to the US Metals and Mining industry average.
  • Reliance Steel & Aluminum is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Reliance Steel & Aluminum's expected growth come at a high price?
Raw Data
NYSE:RS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-6.3%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 25 Publicly-Listed Metals and Mining Companies 0.53x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:RS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.11x ÷ -6.3%

-1.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reliance Steel & Aluminum earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Reliance Steel & Aluminum's assets?
Raw Data
NYSE:RS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $71.83
NYSE:RS Share Price * NYSE (2019-05-24) in USD $84.97
United States of America Metals and Mining Industry PB Ratio Median Figure of 104 Publicly-Listed Metals and Mining Companies 1.38x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:RS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RS Share Price ÷ Book Value per Share (both in USD)

= 84.97 ÷ 71.83

1.18x

* Primary Listing of Reliance Steel & Aluminum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reliance Steel & Aluminum is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Reliance Steel & Aluminum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Reliance Steel & Aluminum has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Reliance Steel & Aluminum expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Reliance Steel & Aluminum expected to grow at an attractive rate?
  • Reliance Steel & Aluminum's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Reliance Steel & Aluminum's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Reliance Steel & Aluminum's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -6.3%
NYSE:RS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -0.4%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 11,705 760 1
2022-12-31 11,515 770 1
2021-12-31 11,118 821 573 5
2020-12-31 11,294 907 580 8
2019-12-31 11,467 870 636 8
NYSE:RS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 11,734 769 655
2018-12-31 11,535 665 634
2018-09-30 11,097 434 850
2018-06-30 10,573 481 799
2018-03-31 10,059 433 671
2017-12-31 9,721 399 613
2017-09-30 9,406 437 374
2017-06-30 9,141 437 326
2017-03-31 8,870 450 324
2016-12-31 8,613 627 304
2016-09-30 8,578 696 311
2016-06-30 8,679 766 313

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Reliance Steel & Aluminum's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Reliance Steel & Aluminum's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Reliance Steel & Aluminum Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 8.44 8.44 8.44 1.00
2020-12-31 8.30 9.20 7.55 6.00
2019-12-31 9.19 9.50 8.55 6.00
NYSE:RS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 9.33
2018-12-31 8.85
2018-09-30 11.72
2018-06-30 10.98
2018-03-31 9.21
2017-12-31 8.42
2017-09-30 5.13
2017-06-30 4.48
2017-03-31 4.46
2016-12-31 4.21
2016-09-30 4.31
2016-06-30 4.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Reliance Steel & Aluminum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Reliance Steel & Aluminum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Reliance Steel & Aluminum has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Reliance Steel & Aluminum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Reliance Steel & Aluminum's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Reliance Steel & Aluminum's year on year earnings growth rate has been positive over the past 5 years.
  • Reliance Steel & Aluminum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Reliance Steel & Aluminum's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Reliance Steel & Aluminum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Reliance Steel & Aluminum Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 11,734.00 654.80 2,104.10
2018-12-31 11,534.50 633.70 2,091.40
2018-09-30 11,096.90 849.50 2,072.30
2018-06-30 10,572.50 798.50 2,012.80
2018-03-31 10,058.80 670.70 1,952.80
2017-12-31 9,721.00 613.40 1,909.60
2017-09-30 9,406.20 373.70 1,867.90
2017-06-30 9,141.30 325.90 1,847.80
2017-03-31 8,870.00 323.80 1,827.10
2016-12-31 8,613.40 304.30 1,800.40
2016-09-30 8,578.00 311.20 1,776.10
2016-06-30 8,679.00 313.10 1,753.90
2016-03-31 8,898.80 302.40 1,739.50
2015-12-31 9,350.50 311.50 1,727.50
2015-09-30 9,901.00 335.20 1,747.60
2015-06-30 10,319.90 379.30 1,779.10
2015-03-31 10,513.00 385.60 1,782.00
2014-12-31 10,451.60 371.50 1,766.60
2014-09-30 10,181.60 341.00 1,757.80
2014-06-30 9,920.00 340.60 1,723.70
2014-03-31 9,751.50 325.10 1,697.70
2013-12-31 9,223.80 321.60 1,627.00
2013-09-30 8,806.10 340.20 1,544.00
2013-06-30 8,417.90 343.20 1,464.10
2013-03-31 8,179.30 371.00 1,393.10
2012-12-31 8,442.30 403.50 1,396.20
2012-09-30 8,587.20 391.00 1,378.10
2012-06-30 8,670.50 377.80 1,352.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Reliance Steel & Aluminum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Reliance Steel & Aluminum used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Reliance Steel & Aluminum has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Reliance Steel & Aluminum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Reliance Steel & Aluminum has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Reliance Steel & Aluminum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Reliance Steel & Aluminum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Reliance Steel & Aluminum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Reliance Steel & Aluminum's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Reliance Steel & Aluminum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Reliance Steel & Aluminum Company Filings, last reported 1 month ago.

NYSE:RS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,839.20 2,373.90 133.60
2018-12-31 4,679.50 2,203.70 128.20
2018-09-30 5,030.30 2,070.20 112.10
2018-06-30 4,980.80 2,037.10 124.30
2018-03-31 4,783.60 2,048.30 145.40
2017-12-31 4,699.90 1,901.40 154.40
2017-09-30 4,445.90 1,975.70 170.20
2017-06-30 4,362.30 2,069.00 146.50
2017-03-31 4,276.00 2,023.20 133.80
2016-12-31 4,179.10 1,929.20 122.80
2016-09-30 4,153.20 2,105.90 143.30
2016-06-30 4,129.40 2,169.40 116.50
2016-03-31 4,040.40 2,134.10 120.50
2015-12-31 3,942.70 1,928.70 104.30
2015-09-30 3,950.50 2,095.50 94.10
2015-06-30 4,062.30 2,201.40 131.90
2015-03-31 4,010.60 2,368.70 101.60
2014-12-31 4,127.90 2,302.00 106.20
2014-09-30 4,119.60 2,322.00 100.70
2014-06-30 4,054.20 2,132.40 113.50
2014-03-31 3,950.00 2,127.80 113.60
2013-12-31 3,884.40 2,109.00 83.60
2013-09-30 3,831.00 2,152.20 104.90
2013-06-30 3,722.80 2,334.50 100.80
2013-03-31 3,655.90 1,150.40 100.10
2012-12-31 3,567.40 1,207.40 97.60
2012-09-30 3,485.50 1,367.60 120.60
2012-06-30 3,375.20 1,531.20 93.60
  • Reliance Steel & Aluminum's level of debt (49.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53.9% vs 49.1% today).
  • Debt is well covered by operating cash flow (32.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.1x coverage).
X
Financial health checks
We assess Reliance Steel & Aluminum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Reliance Steel & Aluminum has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Reliance Steel & Aluminum's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.59%
Current annual income from Reliance Steel & Aluminum dividends. Estimated to be 2.66% next year.
If you bought $2,000 of Reliance Steel & Aluminum shares you are expected to receive $52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Reliance Steel & Aluminum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Reliance Steel & Aluminum's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.43 1.00
2022-12-31 2.38 1.00
2021-12-31 2.30 6.00
2020-12-31 2.26 9.00
2019-12-31 2.20 9.00
NYSE:RS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 2.200 2.477
2019-04-25 2.200 2.414
2019-02-27 2.200 2.449
2019-02-21 2.200 2.445
2018-11-01 2.000 2.561
2018-10-25 2.000 2.574
2018-04-26 2.000 2.250
2018-02-28 2.000 2.266
2018-02-15 2.000 2.168
2017-07-27 1.800 2.294
2017-05-03 1.800 2.452
2017-04-27 1.800 2.303
2017-02-24 1.800 2.245
2017-02-16 1.800 2.092
2016-10-31 1.700 2.122
2016-10-20 1.700 2.490
2016-08-01 1.700 2.358
2016-07-21 1.700 2.204
2016-05-02 1.600 2.112
2016-04-21 1.600 2.193
2016-02-26 1.600 2.345
2016-02-18 1.600 2.673
2015-10-30 1.600 2.801
2015-10-22 1.600 2.668
2015-07-31 1.600 2.777
2015-07-23 1.600 2.637
2015-02-19 1.600 2.613
2014-07-24 1.400 2.222
2014-04-24 1.400 1.925
2014-02-27 1.400 1.993
2014-02-20 1.400 2.016
2013-10-24 1.320 1.799
2013-07-25 1.320 1.851
2013-04-25 1.200 1.807
2013-02-26 1.200 1.777
2013-02-21 1.200 1.799
2012-10-25 1.000 1.644
2012-07-26 1.000 1.904
2012-04-26 0.600 1.214
2012-02-16 0.600 1.093
2011-10-27 0.480 0.977
2011-07-28 0.480 1.229
2011-04-28 0.480 0.963
2011-02-17 0.480 0.865
2010-07-22 0.400 0.892
2010-02-18 0.400 0.892
2009-10-22 0.400 0.950
2009-07-23 0.400 1.032

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Reliance Steel & Aluminum's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Reliance Steel & Aluminum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Reliance Steel & Aluminum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Reliance Steel & Aluminum has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Reliance Steel & Aluminum's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Hoffman
COMPENSATION $4,988,218
AGE 59
TENURE AS CEO 0.3 years
CEO Bio

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 was its Chief Operating Officer since March 2016 until January 1, 2019. Mr. Hoffman serves as Chief Executive Officer at Sunbelt Steel Texas, Inc. He serves as the Chief Executive Officer and Manager at Continental Alloys & Services (Delaware) LLC. Mr. Hoffman was an Executive Vice President of Reliance Steel & Aluminum Co. since March 2016 until January 1, 2019. Mr. Hoffman served as Executive Vice President of Operations at Reliance Steel & Aluminum Co. since May 2015 until February 29, 2016 and Senior Vice President of Operations since October 2008. Mr. Hoffman joined Reliance’s executive management team in 2008. He served as the Chief Operating Officer of Earle M. Jorgensen Company, Inc., a subsidiary of Reliance Steel & Aluminum Co. since April 3, 2006 and Executive Vice President since January 17, 2006. He served as a Vice President of Earle M. Jorgensen Company from March 2001 to January 17, 2006. He was responsible for operations of Cleveland, Indianapolis and Cincinnati facilities since March 2001. Before that, he served as Jorgensen Earle M Co.'s Vice President Eastern Region since July 1996. He served as District Manager of Jorgensen Earle M Co.'s Cleveland and Buffalo operations since June 1992. He held various sales and operational positions since joining EMJ in 1991. From 1980 to 1991, he worked at various positions at United States Steel Corporation. He serves as a Director At Large of Metals Service Center Institute. Mr. Hoffman graduated from West Virginia University with a BS degree in Advertising and Marketing.

CEO Compensation
  • Jim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Reliance Steel & Aluminum management team in years:

4
Average Tenure
57
Average Age
  • The tenure for the Reliance Steel & Aluminum management team is about average.
Management Team

Jim Hoffman

TITLE
President & CEO
COMPENSATION
$5M
AGE
59
TENURE
0.3 yrs

Karla Lewis

TITLE
Senior EVP & CFO
COMPENSATION
$4M
AGE
52
TENURE
20.3 yrs

Bill Sales

TITLE
Executive Vice President of Operations
COMPENSATION
$4M
AGE
61
TENURE
4 yrs

Gregg Mollins

TITLE
Senior Advisor to the CEO & Director
COMPENSATION
$13M
AGE
63
TENURE
0.3 yrs

Michael Shanley

TITLE
Senior Vice President of Operations
COMPENSATION
$3M
AGE
60
TENURE
4.1 yrs

Jeffrey Durham

TITLE
Senior Vice President of Operations
AGE
55
TENURE
0.3 yrs

Will Smith

TITLE
Senior VP
AGE
50
TENURE
6 yrs

Don Prebola

TITLE
Vice President of Health
AGE
63
TENURE
3.9 yrs

Steve Koch

TITLE
Senior Vice President of Operations
COMPENSATION
$3M
AGE
51
TENURE
9.1 yrs

Arthur Ajemyan

TITLE
VP & Corporate Controller
AGE
42
TENURE
6.8 yrs
Board of Directors Tenure

Average tenure and age of the Reliance Steel & Aluminum board of directors in years:

6.8
Average Tenure
62
Average Age
  • The tenure for the Reliance Steel & Aluminum board of directors is about average.
Board of Directors

Mark Kaminski

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$410K
AGE
62
TENURE
2.8 yrs

Gregg Mollins

TITLE
Senior Advisor to the CEO & Director
COMPENSATION
$13M
AGE
63
TENURE
21.7 yrs

John Figueroa

TITLE
Independent Director
COMPENSATION
$277K
AGE
55
TENURE
8.6 yrs

Sally Anderson

TITLE
Independent Director
COMPENSATION
$282K
AGE
67
TENURE
6.8 yrs

Doug Stotlar

TITLE
Independent Director
COMPENSATION
$260K
AGE
57
TENURE
2.6 yrs

David Hannah

TITLE
Director
COMPENSATION
$260K
AGE
66
TENURE
27.3 yrs

Andrew Sharkey

TITLE
Independent Director
COMPENSATION
$272K
AGE
71
TENURE
11.8 yrs

Rob McEvoy

TITLE
Independent Director
COMPENSATION
$260K
AGE
52
TENURE
3.6 yrs

Karen Colonias

TITLE
Independent Director
COMPENSATION
$260K
AGE
61
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • Reliance Steel & Aluminum insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. May 19 Sell Jeffrey Durham Individual 03. May 19 03. May 19 -2,675 $92.29 $-246,876
06. May 19 Sell Gregg Mollins Individual 03. May 19 03. May 19 -25,000 $91.81 $-2,295,250
01. May 19 Sell Stephen Koch Individual 30. Apr 19 30. Apr 19 -11,333 $91.62 $-1,038,329
01. May 19 Sell Michael Shanley Individual 29. Apr 19 29. Apr 19 -7,385 $91.55 $-676,097
05. Mar 19 Sell Gregg Mollins Individual 01. Mar 19 04. Mar 19 -49,290 $89.51 $-4,403,521
05. Mar 19 Sell Karla McDowell Individual 01. Mar 19 01. Mar 19 -8,652 $90.01 $-776,651
01. Mar 19 Sell William Smith Individual 28. Feb 19 28. Feb 19 -5,899 $89.20 $-526,191
27. Feb 19 Sell Gregg Mollins Individual 26. Feb 19 26. Feb 19 -9,478 $90.05 $-853,494
27. Feb 19 Sell William Smith Individual 25. Feb 19 25. Feb 19 -3,025 $90.63 $-274,156
27. Feb 19 Sell Michael Shanley Individual 26. Feb 19 26. Feb 19 -8,870 $90.62 $-803,799
26. Nov 18 Sell David Hannah Individual 21. Nov 18 21. Nov 18 -28,080 $80.00 $-2,246,400
21. Nov 18 Sell William Smith Individual 20. Nov 18 20. Nov 18 -5,582 $78.98 $-440,866
02. Aug 18 Sell David Hannah Individual 01. Aug 18 01. Aug 18 -25,000 $90.04 $-2,251,000
07. Jun 18 Sell Michael Shanley Individual 06. Jun 18 06. Jun 18 -4,069 $96.50 $-392,659
X
Management checks
We assess Reliance Steel & Aluminum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Reliance Steel & Aluminum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does Reliance Steel & Aluminum Co.'s (NYSE:RS) P/E Ratio Tell You?

Reliance Steel &amp; Aluminum has a price to earnings ratio of 9.58, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Reliance Steel &amp; Aluminum: P/E of 9.58 = $89.34 ÷ $9.33 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:RS Price Estimation Relative to Market, May 16th 2019 Its P/E ratio suggests that Reliance Steel &amp; Aluminum shareholders think that in the future it will perform about the same as other companies in its industry classification.

Simply Wall St -

Should You Consider Reliance Steel & Aluminum Co. (NYSE:RS)?

Help shape the future of investing tools and you could win a $250 gift card! … (NYSE:RS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

Reliance Steel & Aluminum Co.'s (NYSE:RS) 2.5% Dividend Yield Looks Pretty Interesting

While Reliance Steel & Aluminum's 2.5% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … Some simple analysis can offer a lot of insight when buying a company for its dividend, and we'll go through these below. … Click the interactive chart for our full dividend analysis

Simply Wall St -

If You Had Bought Reliance Steel & Aluminum (NYSE:RS) Shares Five Years Ago You'd Have Made 35%

(NYSE:RS) share price is up 35% in the last five years, that's less than the market return. … Over half a decade, Reliance Steel & Aluminum managed to grow its earnings per share at 16% a year. … Dive deeper into the earnings by checking this interactive graph of Reliance Steel & Aluminum's earnings, revenue and cash flow.

Simply Wall St -

What does Reliance Steel & Aluminum Co.'s (NYSE:RS) Balance Sheet Tell Us About Its Future?

Mid-caps stocks, like Reliance Steel & Aluminum Co. … (NYSE:RS) with a market capitalization of US$6.1b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Check out our latest analysis for Reliance Steel & Aluminum

Simply Wall St -

What Kind Of Shareholders Own Reliance Steel & Aluminum Co. (NYSE:RS)?

A look at the shareholders of Reliance Steel & Aluminum Co. … Generally speaking, as a company grows, institutions will increase their ownership. … Reliance Steel & Aluminum has a market capitalization of US$6.0b, so it's too big to fly under the radar.

Simply Wall St -

Only 4 Days Left To Cash In On Reliance Steel & Aluminum Co. (NYSE:RS) Dividend

On the 29 March 2019, Reliance Steel & Aluminum Co. … (NYSE:RS) will be paying shareholders an upcoming dividend amount of US$0.55 per share. … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Who Has Been Selling Reliance Steel & Aluminum Co. (NYSE:RS) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Reliance Steel & Aluminum Co. … The Last 12 Months Of Insider Transactions At Reliance Steel & Aluminum. … In total, Reliance Steel & Aluminum insiders sold more than they bought over the last year

Simply Wall St -

Is Reliance Steel & Aluminum Co. (NYSE:RS) Better Than Average At Deploying Capital?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Reliance Steel & Aluminum Co. (NYSE:RS): Secrets For Long Term Investors

High quality stocks such as Reliance Steel & Aluminum Co. … See our latest analysis for Reliance Steel & Aluminum. … Reliance Steel & Aluminum Co.

Simply Wall St -

Company Info

Description

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 related processing services to general manufacturing, non-residential construction, transportation, aerospace and defense, energy, electronics and semiconductor fabrication, auto, and heavy industries. It also offers precision sheet metal fabrication services, including laser cutting, stamping, turret punching, machining, powder coating, shearing, computer numerated control (CNC) punching, and CNC forming and rolling, as well as welding, assembly, painting, inventory management, and engineering expertise. In addition, the company manufactures metal parts that have applications in various end markets, including industrial machinery, automotive, aerospace, sugar products, and consumer electronics manufacturers; and distributes and processes tubing and bar products. Further, it provides toll processing and logistics services. The company sells directly to large original equipment manufacturer customers, as well as to small machine shops and fabricators. It operates in the United States, Australia, Belgium, Canada, China, France, India, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates, and the United Kingdom. Reliance Steel & Aluminum Co. was founded in 1939 and is headquartered in Los Angeles, California.

Details
Name: Reliance Steel & Aluminum Co.
RS
Exchange: NYSE
Founded: 1939
$5,712,990,408
67,235,382
Website: http://www.rsac.com
Address: Reliance Steel & Aluminum Co.
350 South Grand Avenue,
Suite 5100,
Los Angeles,
California, 90071,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RS Common Stock New York Stock Exchange US USD 16. Sep 1994
DB RS6 Common Stock Deutsche Boerse AG DE EUR 16. Sep 1994
Number of employees
Current staff
Staff numbers
15,600
Reliance Steel & Aluminum employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 23:43
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.