RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
290.99 USD
-5.63 (-1.9%)
290.99 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 156 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. RS also has an excellent dividend rating. This makes RS very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
RS had positive earnings in the past year.
RS had a positive operating cash flow in the past year.
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
RS has a better Return On Assets (6.90%) than 76.92% of its industry peers.
With a decent Return On Equity value of 9.97%, RS is doing good in the industry, outperforming 73.72% 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 71.79% 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 13.25%.
The 3 year average ROIC (15.30%) for RS is well above the current ROIC(8.10%). The reason for the recent decline needs to be investigated.
| 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 68.59% 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.
RS has a better Operating Margin (7.23%) than 60.26% of its industry peers.
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 64.74% 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
RS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RS has less shares outstanding
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 5.81. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
RS has a better Altman-Z score (5.81) than 68.59% 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.
The Debt to FCF ratio of RS (2.09) is better than 76.28% 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 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.81 |
ROIC/WACC0.81
WACC10.02%
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 76.28% 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 of 2.08. This is comparable to the rest of the industry: RS outperforms 57.05% of 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%.
RS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.86% yearly.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -0.88% in the last year.
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
The Earnings Per Share is expected to grow by 5.91% on average over the next years.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-4.73%
EPS Next 2Y6.96%
EPS Next 3Y5.91%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y3.8%
Revenue Next 3Y3.01%
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.
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
RS is valuated rather expensively with a Price/Earnings ratio of 20.70.
83.97% of the companies in the same industry are more expensive than RS, based on the Price/Earnings ratio.
RS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.39.
A Price/Forward Earnings ratio of 16.09 indicates a correct valuation of RS.
RS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RS is cheaper than 64.10% of the companies in the same industry.
RS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 67.95% of the companies in the same industry.
85.26% 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 | 22.98 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.34
EPS Next 2Y6.96%
EPS Next 3Y5.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, 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 82.69% of the companies in the same industry.
RS's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of RS grows each year by 14.75%, which is quite nice.
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 2Y6.96%
EPS Next 3Y5.91%
290.99
-5.63 (-1.9%)
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 Cap15.22B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target322.64 (10.88%)
Short Float %2.45%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-2.1%
PT rev (3m)-2.85%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-17.4%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 16.09 | ||
| P/S | 1.09 | ||
| P/FCF | 22.98 | ||
| P/OCF | 14.79 | ||
| P/B | 2.08 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)14.06
EY4.83%
EPS(NY)18.09
Fwd EY6.22%
FCF(TTM)12.66
FCFY4.35%
OCF(TTM)19.67
OCFY6.76%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.34
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 | 5.81 |
F-Score5
WACC10.02%
ROIC/WACC0.81
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-4.73%
EPS Next 2Y6.96%
EPS Next 3Y5.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
Revenue Next Year3.25%
Revenue Next 2Y3.8%
Revenue Next 3Y3.01%
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 -4.73% in the next year.
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%.