RELIANCE INC (RS) Stock Fundamental Analysis
USA - NYSE:RS - US7595091023 - Common Stock
266.94 USD
+0.11 (+0.04%)
266.94 USD
0 (0%)
Taking everything into account, RS scores 6 out of 10 in our fundamental rating. RS was compared to 154 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.
In the past 5 years RS has always been profitable.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
RS has a better Return On Assets (6.90%) than 77.92% of its industry peers.
RS has a better Return On Equity (9.97%) than 74.03% of its industry peers.
With a decent Return On Invested Capital value of 8.10%, RS is doing good in the industry, outperforming 73.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 12.85%.
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 69.48% 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.
Looking at the Operating Margin, with a value of 7.23%, RS is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
In the last couple of years the Operating Margin of RS has declined.
RS has a Gross Margin of 29.06%. This is in the better half of the industry: RS outperforms 66.23% of its industry peers.
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
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
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
An Altman-Z score of 5.60 indicates that RS is not in any danger for bankruptcy at the moment.
RS has a better Altman-Z score (5.60) than 68.18% 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.
With a decent Debt to FCF ratio value of 2.09, RS is doing good in the industry, outperforming 77.92% of the companies in the same industry.
RS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RS (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.6 |
ROIC/WACC0.87
WACC9.32%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
The Current ratio of RS (4.43) is better than 76.62% of its industry peers.
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 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 6.62% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y-4.24%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue Next Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
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
Based on the Price/Earnings ratio of 18.99, the valuation of RS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 79.87% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RS to the average of the S&P500 Index (25.07), we can say RS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.28, 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 62.99% of the companies listed in the same industry.
RS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 68.18% of the companies listed in the same industry.
RS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RS is cheaper than 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.21 | ||
| EV/EBITDA | 11.79 |
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)2.14
EPS Next 2Y8.72%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, RS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.63, RS pays a better dividend. On top of this RS pays more dividend than 81.82% of the companies listed in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 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
34.66% of the earnings are spent on dividend by RS. This is a low number and 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 2Y8.72%
EPS Next 3Y6.62%
266.94
+0.11 (+0.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change6.38%
Ins Owners0.36%
Ins Owner Change0.72%
Market Cap14.04B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.55 (23.45%)
Short Float %2.24%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)-0.77%
PT rev (3m)-2.04%
EPS NQ rev (1m)-15.23%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)-4.11%
EPS NY rev (3m)-10.36%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 14.28 | ||
| P/S | 1.01 | ||
| P/FCF | 21.21 | ||
| P/OCF | 13.65 | ||
| P/B | 1.92 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 11.79 |
EPS(TTM)14.06
EY5.27%
EPS(NY)18.69
Fwd EY7%
FCF(TTM)12.59
FCFY4.72%
OCF(TTM)19.56
OCFY7.33%
SpS264.73
BVpS138.91
TBVpS79.09
PEG (NY)N/A
PEG (5Y)2.14
Graham Number209.63
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 | 5.6 |
F-Score5
WACC9.32%
ROIC/WACC0.87
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-4.24%
EPS Next 2Y8.72%
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 Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y-25.39%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year13.77%
EBIT Next 3Y8.99%
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 6 / 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 -4.24% 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%.