RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
325.86 USD
-1.37 (-0.42%)
325.86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 154 industry peers in the Metals & Mining industry. RS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RS has a valuation in line with the averages, but on the other hand it scores bad on growth. RS also has an excellent dividend rating. This makes RS very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year RS was profitable.
- RS had a positive operating cash flow in the past year.
- Each year in the past 5 years RS has been profitable.
- In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of RS (6.90%) is better than 78.57% of its industry peers.
- RS has a Return On Equity of 9.97%. This is in the better half of the industry: RS outperforms 74.68% of its industry peers.
- With a decent Return On Invested Capital value of 8.10%, RS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RS 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.
- In the last couple of years the Profit Margin of RS has remained more or less at the same level.
- The Operating Margin of RS (7.23%) is better than 60.39% of its industry peers.
- In the last couple of years the Operating Margin of RS has declined.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RS is still creating some value.
- RS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RS has less shares outstanding
- RS has a worse debt/assets ratio than last year.
2.2 Solvency
- RS has an Altman-Z score of 6.15. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of RS (6.15) is better than 64.94% 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 Debt to FCF ratio of 2.09. This is in the better half 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.
- RS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. RS outperforms 50.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 6.15 |
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.
- 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.
- Measured over the past years, RS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.86% on average per year.
- RS shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
- 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 6.45% yearly.
- The Revenue is expected to grow by 3.37% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 23.18 indicates a rather expensive valuation of RS.
- Based on the Price/Earnings ratio, RS is valued cheaper than 84.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. RS is around the same levels.
- The Price/Forward Earnings ratio is 17.75, which indicates a rather expensive current valuation of RS.
- 67.53% 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 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
- 88.31% of the companies in the same industry are more expensive than RS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.74 | ||
| EV/EBITDA | 14.13 |
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)2.61
EPS Next 2Y7.75%
EPS Next 3Y6.45%
5. Dividend
5.1 Amount
- RS has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.02, RS pays a better dividend. On top of this RS pays more dividend than 82.47% of the companies listed in the same industry.
- RS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 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
- RS pays out 34.66% of its income as dividend. This is a sustainable payout ratio.
- RS's earnings are growing slower than its dividend. 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 23.18 and the Price/Book (PB) ratio is 2.33.
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%.