RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
281.28 USD
-4.54 (-1.59%)
281.28 USD
0 (0%)
Taking everything into account, RS scores 6 out of 10 in our fundamental rating. RS was compared to 155 industry peers in the Metals & Mining industry. RS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.90%, RS is doing good in the industry, outperforming 77.42% of the companies in the same industry.
The Return On Equity of RS (9.97%) is better than 73.55% of its industry peers.
The Return On Invested Capital of RS (8.10%) is better than 72.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RS is above the industry average of 13.15%.
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
RS has a better Profit Margin (5.23%) than 69.03% of its industry peers.
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 60.65% of the companies in the same industry.
RS's Operating Margin has declined in the last couple of years.
RS has a Gross Margin of 29.06%. This is in the better half of the industry: RS outperforms 65.16% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RS is still creating some value.
Compared to 1 year ago, RS has less shares outstanding
RS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RS is higher compared to a year ago.
2.2 Solvency
RS has an Altman-Z score of 5.72. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
RS's Altman-Z score of 5.72 is fine compared to the rest of the industry. RS outperforms 69.68% of its industry peers.
RS has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as RS would need 2.09 years to pay back of all of its debts.
RS has a better Debt to FCF ratio (2.09) than 76.77% 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.
RS has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: RS outperforms 50.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.72 |
ROIC/WACC0.8
WACC10.15%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.43, RS is doing good in the industry, outperforming 76.77% of the companies in the same industry.
A Quick Ratio of 2.08 indicates that RS has no problem at all paying its short term obligations.
RS has a Quick ratio (2.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.25%.
The Earnings Per Share has been growing by 8.86% on average over the past years. This is quite good.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -0.88% in the last 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
Based on estimates for the next years, RS will show a small growth in Earnings Per Share. The EPS will grow by 6.62% on average per year.
Based on estimates for the next years, RS will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-4.19%
EPS Next 2Y8.05%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y3.8%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.01, RS is valued on the expensive side.
Based on the Price/Earnings ratio, RS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RS to the average of the S&P500 Index (26.34), we can say RS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.24, RS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 63.87% of the companies listed in the same industry.
RS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 67.10% 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 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 12.31 |
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)2.26
EPS Next 2Y8.05%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.54, RS pays a better dividend. On top of this RS pays more dividend than 81.94% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 2Y8.05%
EPS Next 3Y6.62%
281.28
-4.54 (-1.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.12%
Inst Owner Change6.46%
Ins Owners0.36%
Ins Owner Change-0.4%
Market Cap14.71B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target326.6 (16.11%)
Short Float %2.32%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)-0.89%
PT rev (3m)-1.66%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-15.42%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 15.24 | ||
| P/S | 1.06 | ||
| P/FCF | 22.22 | ||
| P/OCF | 14.3 | ||
| P/B | 2.01 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)14.06
EY5%
EPS(NY)18.46
Fwd EY6.56%
FCF(TTM)12.66
FCFY4.5%
OCF(TTM)19.67
OCFY6.99%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.26
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 | 5.72 |
F-Score5
WACC10.15%
ROIC/WACC0.8
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-4.19%
EPS Next 2Y8.05%
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 Year3.17%
Revenue Next 2Y3.8%
Revenue Next 3Y2.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.39%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year10.19%
EBIT Next 3Y8.74%
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 -4.19% 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%.