RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
326.47 USD
-3.36 (-1.02%)
326.47 USD
0 (0%)
Overall RS gets a fundamental rating of 6 out of 10. We evaluated RS 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally RS also has an excellent dividend rating. With these ratings, RS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- RS had positive earnings in the past year.
- In the past year RS had a positive cash flow from operations.
- RS had positive earnings in each of the past 5 years.
- In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 6.90%, RS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.97%, RS is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
- RS's Return On Invested Capital of 8.10% is fine compared to the rest of the industry. RS outperforms 73.38% of its industry peers.
- RS had an Average Return On Invested Capital over the past 3 years of 15.30%. This is above the industry average of 10.32%.
- 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
- Looking at the Profit Margin, with a value of 5.23%, RS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- RS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 7.23%, RS is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
- RS's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 29.06%, RS is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
- In the last couple of years the Gross Margin of RS has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RS is creating some value.
- RS has less shares outstanding than it did 1 year ago.
- RS has less shares outstanding than it did 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 6.19. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RS (6.19) is better than 66.23% of its industry peers.
- 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's Debt to FCF ratio of 2.09 is fine compared to the rest of the industry. RS outperforms 77.92% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that RS is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.19, RS is in line with its industry, outperforming 50.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 6.19 |
ROIC/WACC0.78
WACC10.42%
2.3 Liquidity
- RS has a Current Ratio of 4.43. This indicates that RS is financially healthy and has no problem in meeting 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.
- A Quick Ratio of 2.08 indicates that RS has no problem at all paying its short term obligations.
- The Quick ratio of RS (2.08) 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.
- RS shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
- The Revenue has been growing slightly by 4.74% on average over the past years.
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 6.45% yearly.
- Based on estimates for the next years, RS will show a small growth in Revenue. The Revenue will grow by 3.37% on average per year.
EPS Next Y-4.3%
EPS Next 2Y7.75%
EPS Next 3Y6.45%
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y4.15%
Revenue Next 3Y3.37%
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
- RS is valuated rather expensively with a Price/Earnings ratio of 23.22.
- 85.06% of the companies in the same industry are more expensive than RS, based on the Price/Earnings ratio.
- RS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.79, which indicates a rather expensive current valuation of RS.
- 65.58% of the companies in the same industry are more expensive than RS, based on the Price/Forward Earnings ratio.
- RS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
- RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 71.43% of the companies in the same industry.
- RS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RS is cheaper than 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.79 | ||
| EV/EBITDA | 14.29 |
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)2.62
EPS Next 2Y7.75%
EPS Next 3Y6.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.46%, RS has a reasonable but not impressive dividend return.
- RS's Dividend Yield is rather good when compared to the industry average which is at 1.02. RS pays more dividend than 82.47% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
- RS pays out 34.66% of its income as dividend. This is a 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 2Y7.75%
EPS Next 3Y6.45%
RELIANCE INC / RS FAQ
What is the fundamental rating for RS stock?
ChartMill assigns a fundamental rating of 6 / 10 to RS.
What is the valuation status of RELIANCE INC (RS) stock?
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 are the PE and PB ratios of RELIANCE INC (RS) stock?
The Price/Earnings (PE) ratio for RELIANCE INC (RS) is 23.22 and the Price/Book (PB) ratio is 2.34.
Is the dividend of RELIANCE INC sustainable?
The dividend rating of RELIANCE INC (RS) is 7 / 10 and the dividend payout ratio is 34.66%.