RELIANCE INC (RS) Stock Fundamental Analysis
NYSE:RS - New York Stock Exchange, Inc. - US7595091023 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 150 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
RS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RS's Return On Assets of 10.12% is amongst the best of the industry. RS outperforms 89.51% of its industry peers.
RS has a better Return On Equity (14.18%) than 85.31% of its industry peers.
The Return On Invested Capital of RS (11.42%) is better than 88.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RS is significantly above the industry average of 8.82%.
The last Return On Invested Capital (11.42%) for RS is well below the 3 year average (17.63%), which needs to be investigated, but indicates that RS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 14.18% | ||
| ROIC | 11.42% |
ROA(3y)15.13%
ROA(5y)11.71%
ROE(3y)22.16%
ROE(5y)17.43%
ROIC(3y)17.63%
ROIC(5y)14.14%
1.3 Margins
RS's Profit Margin of 7.42% is fine compared to the rest of the industry. RS outperforms 76.22% of its industry peers.
In the last couple of years the Profit Margin of RS has grown nicely.
RS has a Operating Margin of 9.60%. This is in the better half of the industry: RS outperforms 62.94% of its industry peers.
RS's Operating Margin has improved in the last couple of years.
RS has a Gross Margin of 30.20%. This is in the better half of the industry: RS outperforms 70.63% of its industry peers.
In the last couple of years the Gross Margin of RS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.6% | ||
| PM (TTM) | 7.42% | ||
| GM | 30.2% |
OM growth 3Y12.66%
OM growth 5Y6.81%
PM growth 3Y29.16%
PM growth 5Y10.42%
GM growth 3Y-1.28%
GM growth 5Y1.54%
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.
RS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.48 indicates that RS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.48, RS is doing good in the industry, outperforming 76.22% of the companies in the same industry.
RS has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
RS's Debt to FCF ratio of 1.20 is amongst the best of the industry. RS outperforms 86.01% of its industry peers.
RS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
RS has a Debt to Equity ratio (0.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 6.48 |
ROIC/WACC1.09
WACC10.43%
2.3 Liquidity
A Current Ratio of 3.31 indicates that RS has no problem at all paying its short term obligations.
RS has a better Current ratio (3.31) than 68.53% of its industry peers.
RS has a Quick Ratio of 1.58. This is a normal value and indicates that RS is financially healthy and should not expect problems in meeting its short term obligations.
RS has a Quick ratio (1.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -22.77% in the last year.
Measured over the past years, RS shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.47% on average per year.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -6.86% in the last year.
RS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)-22.77%
EPS 3Y43.2%
EPS 5Y20.47%
EPS Q2Q%-27.05%
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y18.88%
Revenue growth 5Y5.12%
Sales Q2Q%-5.59%
3.2 Future
Based on estimates for the next years, RS will show a decrease in Earnings Per Share. The EPS will decrease by -5.92% on average per year.
RS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.95% yearly.
EPS Next Y-25.25%
EPS Next 2Y-12.16%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue Next Year-6.83%
Revenue Next 2Y-2.85%
Revenue Next 3Y-0.95%
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
With a Price/Earnings ratio of 16.52, RS is valued correctly.
RS's Price/Earnings ratio is a bit cheaper when compared to the industry. RS is cheaper than 78.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.30, RS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.37, RS is valued on the expensive side.
RS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RS is cheaper than 62.94% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, RS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 61.54% 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 83.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
The excellent profitability rating of RS may justify a higher PE ratio.
RS's earnings are expected to decrease with -5.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-12.16%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
RS's Dividend Yield is a higher than the industry average which is at 3.12.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of RS is nicely growing with an annual growth rate of 14.52%!
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)14.52%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
RS pays out 23.72% of its income as dividend. This is a sustainable payout ratio.
DP23.72%
EPS Next 2Y-12.16%
EPS Next 3Y-5.92%
302.66
+9.04 (+3.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change1.58%
Ins Owners0.38%
Ins Owner Change-0.92%
Market Cap16.38B
Analysts76.47
Price Target331.68 (9.59%)
Short Float %2.72%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend4.1
Dividend Growth(5Y)14.52%
DP23.72%
Div Incr Years14
Div Non Decr Years30
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.98%
Min EPS beat(2)-4.63%
Max EPS beat(2)-3.33%
EPS beat(4)1
Avg EPS beat(4)0.56%
Min EPS beat(4)-7.01%
Max EPS beat(4)17.2%
EPS beat(8)3
Avg EPS beat(8)3.75%
EPS beat(12)6
Avg EPS beat(12)5.69%
EPS beat(16)9
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-5.82%
Max Revenue beat(4)-1.74%
Revenue beat(8)0
Avg Revenue beat(8)-3.32%
Revenue beat(12)2
Avg Revenue beat(12)-1.8%
Revenue beat(16)4
Avg Revenue beat(16)-1.41%
PT rev (1m)0.53%
PT rev (3m)1.4%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 17.37 | ||
| P/S | 1.17 | ||
| P/FCF | 15.57 | ||
| P/OCF | 11.05 | ||
| P/B | 2.23 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 10.77 |
EPS(TTM)18.32
EY6.05%
EPS(NY)17.42
Fwd EY5.76%
FCF(TTM)19.44
FCFY6.42%
OCF(TTM)27.39
OCFY9.05%
SpS259.53
BVpS135.82
TBVpS76.65
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 14.18% | ||
| ROCE | 14.94% | ||
| ROIC | 11.42% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 18.7% | ||
| OM | 9.6% | ||
| PM (TTM) | 7.42% | ||
| GM | 30.2% | ||
| FCFM | 7.49% |
ROA(3y)15.13%
ROA(5y)11.71%
ROE(3y)22.16%
ROE(5y)17.43%
ROIC(3y)17.63%
ROIC(5y)14.14%
ROICexc(3y)19.51%
ROICexc(5y)15.46%
ROICexgc(3y)31.87%
ROICexgc(5y)25.59%
ROCE(3y)23.07%
ROCE(5y)18.5%
ROICexcg growth 3Y19.98%
ROICexcg growth 5Y6.9%
ROICexc growth 3Y24.12%
ROICexc growth 5Y8.52%
OM growth 3Y12.66%
OM growth 5Y6.81%
PM growth 3Y29.16%
PM growth 5Y10.42%
GM growth 3Y-1.28%
GM growth 5Y1.54%
F-Score5
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 164.71% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 36.44 | ||
| Cash Conversion | 92.09% | ||
| Profit Quality | 100.92% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 6.48 |
F-Score5
WACC10.43%
ROIC/WACC1.09
Cap/Depr(3y)145.37%
Cap/Depr(5y)124.45%
Cap/Sales(3y)2.28%
Cap/Sales(5y)2.2%
Profit Quality(3y)75.47%
Profit Quality(5y)129.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.77%
EPS 3Y43.2%
EPS 5Y20.47%
EPS Q2Q%-27.05%
EPS Next Y-25.25%
EPS Next 2Y-12.16%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y18.88%
Revenue growth 5Y5.12%
Sales Q2Q%-5.59%
Revenue Next Year-6.83%
Revenue Next 2Y-2.85%
Revenue Next 3Y-0.95%
Revenue Next 5YN/A
EBIT growth 1Y-27.92%
EBIT growth 3Y33.94%
EBIT growth 5Y12.28%
EBIT Next Year-13.25%
EBIT Next 3Y-1.64%
EBIT Next 5YN/A
FCF growth 1Y-24.64%
FCF growth 3Y6.3%
FCF growth 5Y23.14%
OCF growth 1Y-13.01%
OCF growth 3Y12.53%
OCF growth 5Y20.25%