NYSE:RS

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Reliance Steel & Aluminum

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.04%

RS

-3.0%

US Metals and Mining

1.0%

US Market


1 Year Return

8.9%

RS

8.0%

US Metals and Mining

4.1%

US Market

Return vs Industry: RS matched the US Metals and Mining industry which returned 7.9% over the past year.

Return vs Market: RS exceeded the US Market which returned 3.7% over the past year.


Shareholder returns

RSIndustryMarket
7 Day0.04%-3.0%1.0%
30 Day5.0%6.5%5.4%
90 Day-15.8%0.7%-5.7%
1 Year10.8%8.9%10.6%8.0%6.5%4.1%
3 Year34.2%25.7%4.4%-2.3%28.3%19.8%
5 Year58.5%41.6%18.4%8.6%52.2%35.0%

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

Valuation

Is Reliance Steel & Aluminum undervalued compared to its fair value and its price relative to the market?

10.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RS ($91.46) is trading above our estimate of fair value ($66.41)

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 (10.6x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: RS is good value based on its PE Ratio (10.6x) compared to the US market (15x).


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 is good value based on its PB Ratio (1.2x) compared to the US Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Reliance Steel & Aluminum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RS's forecast earnings growth (14.3% per year) is above the savings rate (2.2%).

Earnings vs Market: RS's earnings (14.3% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: RS's earnings are forecast to grow, but not significantly.

Revenue vs Market: RS's revenue (3.2% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: RS's revenue (3.2% 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 (9.5%).


Next Steps

Past Performance

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

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RS has high quality earnings.

Growing Profit Margin: RS's current net profit margins (5.4%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: RS's earnings have grown by 18.3% 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 (-12.4%) 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 (11.8%) 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 ($3.1B) exceed its short term liabilities ($735.6M).

Long Term Liabilities: RS's short term assets ($3.1B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: RS's debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: RS's debt to equity ratio has reduced from 59% to 37.5% over the past 5 years.

Debt Coverage: RS's debt is well covered by operating cash flow (73.8%).

Interest Coverage: RS's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RS's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: RS's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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 (26.5%), 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 (34.7% 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 (60yo)

1.33yrs

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 ($USD13.77M) is above average for companies of similar size in the US market ($USD7.43M).

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

NamePositionTenureCompensationOwnership
James Hoffman
President1.33yrsUS$13.77m0.080% $4.7m
Karla Lewis
Senior EVP & CFO21.33yrsUS$9.80m0.12% $6.9m
William Sales
Executive Vice President of Operations5yrsUS$6.20m0.16% $9.4m
Stephen Koch
Senior Vice President of Operations10.08yrsUS$3.86m0.018% $1.0m
Michael Shanley
Senior Vice President of Operations5.08yrsUS$3.87m0.021% $1.2m
Suzanne Bonner
VP & Chief Information Officer0.83yrno datano data
William Smith
Senior VP7yrsno data0.041% $2.4m
Donald Prebola
Vice President of Health & Human Resources8.75yrsno datano data
Jeffrey Durham
Senior Vice President of Operations1.33yrsno data0.026% $1.5m
Arthur Ajemyan
VP & Corporate Controller7.75yrsno data0.019% $1.1m

6.0yrs

Average Tenure

56yo

Average Age

Experienced Management: RS's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Hoffman
President1.33yrsUS$13.77m0.080% $4.7m
David Hannah
Director28.33yrsUS$259.99k0.13% $7.4m
Mark Kaminski
Independent Non-Executive Chairman of the Board3.83yrsUS$409.99k0.044% $2.5m
Douglas Stotlar
Independent Director3.58yrsUS$274.99k0.0095% $555.9k
Andrew Sharkey
Independent Director12.83yrsUS$259.99k0.036% $2.1m
John Figueroa
Independent Director9.58yrsUS$279.99k0.028% $1.6m
Karen Colonias
Independent Director3.58yrsUS$259.99k0.0095% $555.9k
Sarah Anderson
Independent Director7.83yrsUS$284.99k0.021% $1.2m
Robert McEvoy
Independent Director4.58yrsUS$259.99k0.033% $1.9m
Lisa Baldwin
Independent Director0.58yrUS$32.50k0.0022% $130.4k

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: RS's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$5.821b
  • Shares outstanding: 63.64m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1994
RS6DB (Deutsche Boerse AG)YesCommon StockDEEURSep 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 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. 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. As of December 31, 2019, it operated approximately 300 metals service center processing and distribution facilities in 40 states in the United States and 13 in other countries. The company sells its products directly to large original equipment manufacturers, and small machine shops and fabricators, as well as through www.fastmetals.com, an e-commerce platform. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 01:49
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.