NYSE:RS

Stock Analysis Report

Reliance Steel & Aluminum

Executive Summary

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

Snowflake

Fundamentals

Excellent 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


Market Performance


7 Day Return

3.3%

NYSE:RS

5.5%

US Metals and Mining

1.3%

US Market


1 Year Return

21.0%

NYSE:RS

-7.2%

US Metals and Mining

2.0%

US Market

RS outperformed the Metals and Mining industry which returned -7.2% over the past year.

RS outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

RSIndustryMarket
7 Day3.3%5.5%1.3%
30 Day6.0%8.6%3.9%
90 Day18.2%4.8%3.4%
1 Year24.0%21.0%-4.5%-7.2%4.2%2.0%
3 Year61.2%50.2%17.3%11.2%47.2%37.6%
5 Year60.6%42.4%-7.9%-15.0%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

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

Reliance Steel & Aluminum is good value based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Reliance Steel & Aluminum expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Reliance Steel & Aluminum's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

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 growth is positive but not above the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Reliance Steel & Aluminum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Reliance Steel & Aluminum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Reliance Steel & Aluminum used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Reliance Steel & Aluminum has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Reliance Steel & Aluminum's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Reliance Steel & Aluminum's level of debt (40.6%) 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 (52.6% vs 40.6% today).

Debt is well covered by operating cash flow (51.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

2.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Reliance Steel & Aluminum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Reliance Steel & Aluminum's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Jim Hoffman (60yo)

0.7yrs

Tenure

US$4,988,218

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 was its Chief Operating Officer since March 2016 until ...


CEO Compensation Analysis

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

60yo

Average Age

The tenure for the Reliance Steel & Aluminum management team is about average.


Board Age and Tenure

7.2yrs

Average Tenure

63yo

Average Age

The tenure for the Reliance Steel & Aluminum board of directors is about average.


Insider Trading

Reliance Steel & Aluminum individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$325,15230 Jul 19
Arthur Ajemyan
EntityIndividual
Shares3,200
Max PriceUS$101.61
SellUS$246,87606 May 19
Jeffrey Durham
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares2,675
Max PriceUS$92.29
SellUS$2,295,25006 May 19
Gregg Mollins
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor to the CEO & Director
Shares25,000
Max PriceUS$91.81
SellUS$1,038,32901 May 19
Stephen Koch
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares11,333
Max PriceUS$91.62
SellUS$676,09701 May 19
Michael Shanley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares7,385
Max PriceUS$91.55
SellUS$776,65105 Mar 19
Karla McDowell
EntityIndividual
Shares8,652
Max PriceUS$90.01
SellUS$4,403,52105 Mar 19
Gregg Mollins
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor to the CEO & Director
Shares49,290
Max PriceUS$89.51
SellUS$526,19101 Mar 19
William Smith
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,899
Max PriceUS$89.20
SellUS$853,49427 Feb 19
Gregg Mollins
EntityIndividual
Role
Member of the Board of Directors
Senior Advisor to the CEO & Director
Shares9,478
Max PriceUS$90.05
SellUS$274,15627 Feb 19
William Smith
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares3,025
Max PriceUS$90.63
SellUS$803,79927 Feb 19
Michael Shanley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations
Shares8,870
Max PriceUS$90.62
SellUS$2,246,40026 Nov 18
David Hannah
EntityIndividual
Role
Member of the Board of Directors
Director
Shares28,080
Max PriceUS$80.00
SellUS$440,86621 Nov 18
William Smith
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,582
Max PriceUS$78.98

Ownership Breakdown


Management Team

  • Gregg Mollins (64yo)

    Senior Advisor to the CEO & Director

    • Tenure: 22yrs
    • Compensation: US$12.57m
  • Bill Sales (62yo)

    Executive Vice President of Operations

    • Tenure: 4.3yrs
    • Compensation: US$4.02m
  • Jim Hoffman (60yo)

    President & CEO

    • Tenure: 0.7yrs
    • Compensation: US$4.99m
  • Will Smith (51yo)

    Senior VP

    • Tenure: 6.3yrs
  • Karla Lewis (53yo)

    Senior EVP & CFO

    • Tenure: 20.7yrs
    • Compensation: US$4.35m
  • Don Prebola (64yo)

    Vice President of Health

    • Tenure: 8.1yrs
  • Steve Koch (52yo)

    Senior Vice President of Operations

    • Tenure: 9.4yrs
    • Compensation: US$2.74m
  • Michael Shanley (61yo)

    Senior Vice President of Operations

    • Tenure: 4.4yrs
    • Compensation: US$3.38m
  • Jeffrey Durham (56yo)

    Senior Vice President of Operations

    • Tenure: 0.7yrs
  • Suzanne Bonner

    VP & Chief Information Officer

    • Tenure: 0.2yrs

Board Members

  • David Hannah (67yo)

    Director

    • Tenure: 27.7yrs
    • Compensation: US$259.99k
  • Gregg Mollins (64yo)

    Senior Advisor to the CEO & Director

    • Tenure: 22yrs
    • Compensation: US$12.57m
  • Mark Kaminski (63yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: US$409.99k
  • Doug Stotlar (58yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$259.99k
  • Andrew Sharkey (72yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$271.99k
  • John Figueroa (56yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$276.99k
  • Karen Colonias (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$259.99k
  • Sally Anderson (68yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$281.99k
  • Rob McEvoy (53yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$259.99k

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$6.892b
  • Shares outstanding: 66.66m
  • 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 rel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.