RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
295.82 USD
+6.95 (+2.41%)
295.82 USD
0 (0%)
Overall RS gets a fundamental rating of 6 out of 10. We evaluated RS against 156 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making RS a very profitable company, without any liquidiy or solvency issues. RS is valued correctly, but it does not seem to be growing. Finally RS also has an excellent dividend rating. With these ratings, RS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year RS was profitable.
In the past year RS had a positive cash flow from operations.
In the past 5 years RS has always been profitable.
RS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RS has a Return On Assets of 6.90%. This is in the better half of the industry: RS outperforms 77.56% 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 74.36% of the companies in the same industry.
RS's Return On Invested Capital of 8.10% is fine compared to the rest of the industry. RS outperforms 71.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of RS (5.23%) is better than 68.59% of its industry peers.
RS's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.23%, RS is in the better half of the industry, outperforming 60.26% of the companies in the same industry.
In the last couple of years the Operating Margin of RS has declined.
RS's Gross Margin of 29.06% is fine compared to the rest of the industry. RS outperforms 64.74% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RS is creating some value.
Compared to 1 year ago, RS has less shares outstanding
The number of shares outstanding for RS has been reduced compared to 5 years ago.
Compared to 1 year ago, RS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.79 indicates that RS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.79, RS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.09, RS is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.79 |
ROIC/WACC0.81
WACC10.05%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
RS's Current ratio of 4.43 is fine compared to the rest of the industry. RS outperforms 77.56% 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.
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%.
The Earnings Per Share has been growing by 8.86% on average over the past years. This is quite good.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -0.88% in the last year.
Measured over the past years, RS shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
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 5.91% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.04, the valuation of RS can be described as rather expensive.
RS's Price/Earnings ratio is rather cheap when compared to the industry. RS is cheaper than 83.33% of the companies in the same industry.
RS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.35 indicates a correct valuation of RS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 64.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, RS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.04 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 69.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RS indicates a rather cheap valuation: RS is cheaper than 86.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.37 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y6.96%
EPS Next 3Y5.91%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.62%.
RS's Dividend Yield is rather good when compared to the industry average which is at 0.98. RS pays more dividend than 82.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, RS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 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 2Y6.96%
EPS Next 3Y5.91%
295.82
+6.95 (+2.41%)
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 Cap15.47B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target322.64 (9.07%)
Short Float %2.38%
Short Ratio3.6
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-DateN/A
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)-2.06%
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 | 21.04 | ||
| Fwd PE | 16.35 | ||
| P/S | 1.11 | ||
| P/FCF | 23.37 | ||
| P/OCF | 15.04 | ||
| P/B | 2.12 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)14.06
EY4.75%
EPS(NY)18.09
Fwd EY6.11%
FCF(TTM)12.66
FCFY4.28%
OCF(TTM)19.67
OCFY6.65%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.37
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 | 5.79 |
F-Score5
WACC10.05%
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 Year9.63%
EBIT Next 3Y8.45%
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.
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 21.04 and the Price/Book (PB) ratio is 2.12.
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%.