RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
288.09 USD
+0.08 (+0.03%)
288.09 USD
0 (0%)
RS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. RS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RS was profitable.
RS had a positive operating cash flow in the past year.
RS had positive earnings in each of the past 5 years.
RS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.90%, RS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
With a decent Return On Equity value of 9.97%, RS is doing good in the industry, outperforming 73.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.10%, RS is doing good in the industry, outperforming 72.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 13.20%.
The last Return On Invested Capital (8.10%) for RS is well below the 3 year average (15.30%), which needs to be investigated, but indicates that RS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROIC | 8.1% |
ROA(3y)13.1%
ROA(5y)11.73%
ROE(3y)18.46%
ROE(5y)17.16%
ROIC(3y)15.3%
ROIC(5y)14.22%
1.3 Margins
With a decent Profit Margin value of 5.23%, RS is doing good in the industry, outperforming 69.48% of the companies in the same industry.
In the last couple of years the Profit Margin of RS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.23%, RS is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
RS's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 29.06%, RS is doing good in the industry, outperforming 66.23% of the companies in the same industry.
RS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.23% | ||
| PM (TTM) | 5.23% | ||
| GM | 29.06% |
OM growth 3Y-14.8%
OM growth 5Y-1.51%
PM growth 3Y-14.23%
PM growth 5Y-0.22%
GM growth 3Y-2.25%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
RS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RS has been reduced compared to 5 years ago.
Compared to 1 year ago, RS has a worse debt to assets ratio.
2.2 Solvency
RS has an Altman-Z score of 5.79. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.79, RS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Debt to FCF ratio of RS is 2.09, which is a good value as it means it would take RS, 2.09 years of fcf income to pay off all of its debts.
RS has a better Debt to FCF ratio (2.09) than 77.92% of its industry peers.
RS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, RS perfoms like the industry average, outperforming 49.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.79 |
ROIC/WACC0.85
WACC9.58%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
RS has a Current ratio of 4.43. This is in the better half of the industry: RS outperforms 77.27% of its industry peers.
RS has a Quick Ratio of 2.08. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
RS has a Quick ratio (2.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -23.25% in the last year.
The Earnings Per Share has been growing by 8.86% on average over the past years. This is quite good.
The Revenue has decreased by -0.88% in the past year.
RS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)-23.25%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
3.2 Future
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.62% yearly.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y-4.24%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue Next Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.49, RS is valued on the expensive side.
Based on the Price/Earnings ratio, RS is valued a bit cheaper than 79.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, RS is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.41, which indicates a correct valuation of RS.
64.29% of the companies in the same industry are more expensive than RS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, RS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than the industry average as 67.53% of the companies are valued more expensively.
RS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RS is cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
RS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y8.72%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.71%.
RS's Dividend Yield is rather good when compared to the industry average which is at 2.60. RS pays more dividend than 82.47% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of RS is nicely growing with an annual growth rate of 14.75%!
RS has paid a dividend for at least 10 years, which is a reliable track record.
RS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
34.66% of the earnings are spent on dividend by RS. This is a low number and sustainable payout ratio.
The dividend of RS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.66%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
288.09
+0.08 (+0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change6.45%
Ins Owners0.36%
Ins Owner Change0%
Market Cap15.06B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.44 (14.35%)
Short Float %2.32%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend4.5
Dividend Growth(5Y)14.75%
DP34.66%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.07%
Min EPS beat(2)-8.1%
Max EPS beat(2)-4.04%
EPS beat(4)0
Avg EPS beat(4)-8.62%
Min EPS beat(4)-21.24%
Max EPS beat(4)-1.11%
EPS beat(8)1
Avg EPS beat(8)-4.03%
EPS beat(12)3
Avg EPS beat(12)-0.37%
EPS beat(16)6
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-2.7%
Revenue beat(16)3
Avg Revenue beat(16)-1.71%
PT rev (1m)-0.03%
PT rev (3m)-0.81%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 15.41 | ||
| P/S | 1.08 | ||
| P/FCF | 22.76 | ||
| P/OCF | 14.65 | ||
| P/B | 2.06 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)14.06
EY4.88%
EPS(NY)18.69
Fwd EY6.49%
FCF(TTM)12.66
FCFY4.39%
OCF(TTM)19.67
OCFY6.83%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.31
Graham Number210.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROCE | 10.52% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.33% | ||
| ROICexgc | 12.58% | ||
| OM | 7.23% | ||
| PM (TTM) | 5.23% | ||
| GM | 29.06% | ||
| FCFM | 4.75% |
ROA(3y)13.1%
ROA(5y)11.73%
ROE(3y)18.46%
ROE(5y)17.16%
ROIC(3y)15.3%
ROIC(5y)14.22%
ROICexc(3y)17.1%
ROICexc(5y)15.58%
ROICexgc(3y)27.77%
ROICexgc(5y)25.53%
ROCE(3y)19.87%
ROCE(5y)18.47%
ROICexgc growth 3Y-17.15%
ROICexgc growth 5Y-1.39%
ROICexc growth 3Y-16.41%
ROICexc growth 5Y0.04%
OM growth 3Y-14.8%
OM growth 5Y-1.51%
PM growth 3Y-14.23%
PM growth 5Y-0.22%
GM growth 3Y-2.25%
GM growth 5Y-0.38%
F-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 131.16% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 21 | ||
| Cash Conversion | 80.02% | ||
| Profit Quality | 90.91% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 5.79 |
F-Score5
WACC9.58%
ROIC/WACC0.85
Cap/Depr(3y)164.53%
Cap/Depr(5y)134.41%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.38%
Profit Quality(3y)100.25%
Profit Quality(5y)122.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.25%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%0%
EPS Next Y-4.24%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
Revenue Next Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y-25.39%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year13.77%
EBIT Next 3Y8.99%
EBIT Next 5YN/A
FCF growth 1Y-55.98%
FCF growth 3Y21.09%
FCF growth 5Y-1.16%
OCF growth 1Y-47.37%
OCF growth 3Y21.39%
OCF growth 5Y1.9%
RELIANCE INC / RS FAQ
What is the fundamental rating for RS stock?
ChartMill assigns a fundamental rating of 6 / 10 to RS.
Can you provide the valuation status for RELIANCE INC?
ChartMill assigns a valuation rating of 5 / 10 to RELIANCE INC (RS). This can be considered as Fairly Valued.
What is the profitability of RS stock?
RELIANCE INC (RS) has a profitability rating of 7 / 10.
What is the earnings growth outlook for RELIANCE INC?
The Earnings per Share (EPS) of RELIANCE INC (RS) is expected to decline by -4.24% in the next year.
Is the dividend of RELIANCE INC sustainable?
The dividend rating of RELIANCE INC (RS) is 6 / 10 and the dividend payout ratio is 34.66%.