RELIANCE INC (RS)
US7595091023 - Common Stock
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 155 industry peers in the Metals & Mining industry. RS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 has a better Return On Assets (10.12%) than 88.39% of its industry peers.
The Return On Equity of RS (14.18%) is better than 84.52% of its industry peers.
The Return On Invested Capital of RS (11.42%) is better than 88.39% of its industry peers.
RS had an Average Return On Invested Capital over the past 3 years of 17.63%. This 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
Looking at the Profit Margin, with a value of 7.42%, RS is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Profit Margin of RS has grown nicely.
Looking at the Operating Margin, with a value of 9.60%, RS is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
RS's Operating Margin has improved in the last couple of years.
RS has a better Gross Margin (30.20%) than 72.26% of its industry peers.
RS's Gross Margin has improved in the last couple of years.
| 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
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
The number of shares outstanding for RS has been reduced compared to 5 years ago.
The debt/assets ratio for RS has been reduced compared to a year ago.
2.2 Solvency
RS has an Altman-Z score of 6.13. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RS (6.13) is better than 78.06% of its industry peers.
The Debt to FCF ratio of RS is 1.20, which is an excellent value as it means it would take RS, only 1.20 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.20, RS belongs to the best of the industry, outperforming 85.16% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that RS is not too dependend on debt financing.
RS has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: RS outperforms 55.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.06
WACC10.79%
2.3 Liquidity
RS has a Current Ratio of 3.31. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
RS has a Current ratio of 3.31. This is in the better half of the industry: RS outperforms 65.16% 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.
With a Quick ratio value of 1.58, RS perfoms like the industry average, outperforming 50.97% of the companies in the same industry.
| 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.
The Revenue has decreased by -6.86% in the past 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
RS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.60% yearly.
Based on estimates for the next years, RS will show a decrease in Revenue. The Revenue will decrease by -1.19% on average per year.
EPS Next Y-24.92%
EPS Next 2Y-11.02%
EPS Next 3Y-6.6%
EPS Next 5YN/A
Revenue Next Year-6.52%
Revenue Next 2Y-2.6%
Revenue Next 3Y-1.19%
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.
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
The Price/Earnings ratio is 14.81, which indicates a correct valuation of RS.
Based on the Price/Earnings ratio, RS is valued a bit cheaper than 72.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. RS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.17, which indicates a correct valuation of RS.
RS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RS to the average of the S&P500 Index (24.00), we can say RS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 61.29% of the companies in the same industry.
82.58% 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 | 13.95 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
RS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RS's earnings are expected to decrease with -6.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y-11.02%
EPS Next 3Y-6.6%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.67%.
RS's Dividend Yield is a higher than the industry average which is at 3.22.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
On average, the dividend of RS grows each year by 14.52%, 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)14.52%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
23.72% of the earnings are spent on dividend by RS. This is a low number and sustainable payout ratio.
DP23.72%
EPS Next 2Y-11.02%
EPS Next 3Y-6.6%
RELIANCE INC
NYSE:RS (12/26/2024, 8:04:00 PM)
Premarket: 270.8 -0.5 (-0.18%)271.3
+0.32 (+0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.6%
Inst Owner Change-2.39%
Ins Owners0.38%
Ins Owner Change-0.91%
Market Cap14.68B
Analysts76.25
Price Target327.39 (20.67%)
Short Float %2.3%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Dividend Growth(5Y)14.52%
DP23.72%
Div Incr Years14
Div Non Decr Years30
Ex-Date
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)0.09%
PT rev (3m)-0.44%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-34.67%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 15.17 | ||
| P/S | 1.05 | ||
| P/FCF | 13.95 | ||
| P/OCF | 9.91 | ||
| P/B | 2 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)18.32
EY6.75%
EPS(NY)17.88
Fwd EY6.59%
FCF(TTM)19.44
FCFY7.17%
OCF(TTM)27.39
OCFY10.09%
SpS259.53
BVpS135.82
TBVpS76.65
PEG (NY)N/A
PEG (5Y)0.72
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 | 6.13 |
F-Score5
WACC10.79%
ROIC/WACC1.06
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-24.92%
EPS Next 2Y-11.02%
EPS Next 3Y-6.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y18.88%
Revenue growth 5Y5.12%
Sales Q2Q%-5.59%
Revenue Next Year-6.52%
Revenue Next 2Y-2.6%
Revenue Next 3Y-1.19%
Revenue Next 5YN/A
EBIT growth 1Y-27.92%
EBIT growth 3Y33.94%
EBIT growth 5Y12.28%
EBIT Next Year-13.09%
EBIT Next 3Y-2.15%
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%