RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
273.34 USD
-1.8 (-0.65%)
273.34 USD
0 (0%)
RS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 153 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
RS had positive earnings in the past year.
In the past year RS had a positive cash flow from operations.
Each year in the past 5 years RS has been profitable.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
RS's Return On Assets of 6.90% is fine compared to the rest of the industry. RS outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 9.97%, RS is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
The Return On Invested Capital of RS (8.10%) is better than 73.20% of its industry peers.
RS had an Average Return On Invested Capital over the past 3 years of 15.30%. This is above the industry average of 13.09%.
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 69.93% of its industry peers.
In the last couple of years the Profit Margin of RS has remained more or less at the same level.
RS has a Operating Margin of 7.23%. This is in the better half of the industry: RS outperforms 62.75% of its industry peers.
RS's Operating Margin has declined in the last couple of years.
The Gross Margin of RS (29.06%) is better than 66.01% 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.
RS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RS has been reduced compared to 5 years ago.
RS has a worse debt/assets ratio than last year.
2.2 Solvency
RS has an Altman-Z score of 5.64. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
RS has a better Altman-Z score (5.64) than 68.63% 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.
RS has a better Debt to FCF ratio (2.09) than 77.12% 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 47.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.64 |
ROIC/WACC0.88
WACC9.22%
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 better Current ratio (4.43) than 75.82% of its industry peers.
A Quick Ratio of 2.08 indicates that RS has no problem at all paying its short term obligations.
The Quick ratio of RS (2.08) 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
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.25%.
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
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.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
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
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
Based on the Price/Earnings ratio of 19.44, 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 78.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RS to the average of the S&P500 Index (25.65), we can say RS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.63, the valuation of RS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 64.05% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RS to the average of the S&P500 Index (34.45), we can say RS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 67.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RS is valued cheaply inside the industry as 83.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.59 | ||
| EV/EBITDA | 11.99 |
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)2.19
EPS Next 2Y8.72%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 2.72, RS pays a better dividend. On top of this RS pays more dividend than 81.05% of the companies listed in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of RS is nicely growing with an annual growth rate of 14.75%!
RS has been paying a dividend for at least 10 years, so it has 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.
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%
273.34
-1.8 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change6.49%
Ins Owners0.36%
Ins Owner Change0%
Market Cap14.29B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.44 (20.52%)
Short Float %2.24%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)-0.81%
PT rev (3m)-2.07%
EPS NQ rev (1m)-15.23%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-10.36%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.44 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.03 | ||
| P/FCF | 21.59 | ||
| P/OCF | 13.9 | ||
| P/B | 1.96 | ||
| P/tB | 3.44 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)14.06
EY5.14%
EPS(NY)18.69
Fwd EY6.84%
FCF(TTM)12.66
FCFY4.63%
OCF(TTM)19.67
OCFY7.2%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.19
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 | 5.64 |
F-Score5
WACC9.22%
ROIC/WACC0.88
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 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 -4.24% 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%.