RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
295.51 USD
+0.14 (+0.05%)
295.51 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. 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. Finally RS also has an excellent dividend rating. These ratings could make RS a good candidate for dividend investing.
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 76.92% of its industry peers.
RS has a better Return On Equity (9.97%) than 73.72% of its industry peers.
RS has a Return On Invested Capital of 8.10%. This is in the better half of the industry: RS outperforms 71.79% 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 13.25%.
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
With a decent Profit Margin value of 5.23%, RS is doing good in the industry, outperforming 68.59% of the companies in the same industry.
RS's Profit Margin has been stable in the last couple of years.
RS has a Operating Margin of 7.23%. This is in the better half of the industry: RS outperforms 60.26% of its industry peers.
RS's Operating Margin has declined in the last couple of years.
RS's Gross Margin of 29.06% is fine compared to the rest of the industry. RS outperforms 64.74% of its industry peers.
RS's Gross Margin has been stable in the last couple of years.
| 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
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
RS has an Altman-Z score of 5.86. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
RS's Altman-Z score of 5.86 is fine compared to the rest of the industry. RS outperforms 66.03% 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 76.28% 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.
RS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. RS outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.8
WACC10.07%
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 76.28% 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.
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.
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%.
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
The Earnings Per Share is expected to grow by 5.91% on average over the next years.
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
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
A Price/Earnings ratio of 21.02 indicates a rather expensive valuation of RS.
Based on the Price/Earnings ratio, RS is valued cheaper than 83.97% of the companies in the same industry.
RS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of RS.
RS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RS is cheaper than 65.38% of the companies in the same industry.
RS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 16.34 |
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 68.59% of the companies listed in the same industry.
85.90% 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 | 23.34 | ||
| EV/EBITDA | 12.89 |
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)2.37
EPS Next 2Y6.96%
EPS Next 3Y5.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, RS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.02, RS pays a better dividend. On top of this RS pays more dividend than 82.69% of the companies listed in the same industry.
RS's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 2Y6.96%
EPS Next 3Y5.91%
295.51
+0.14 (+0.05%)
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 Cap15.45B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target322.64 (9.18%)
Short Float %2.45%
Short Ratio3.79
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-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)-2.1%
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 | 21.02 | ||
| Fwd PE | 16.34 | ||
| P/S | 1.11 | ||
| P/FCF | 23.34 | ||
| P/OCF | 15.02 | ||
| P/B | 2.12 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.89 |
EPS(TTM)14.06
EY4.76%
EPS(NY)18.09
Fwd EY6.12%
FCF(TTM)12.66
FCFY4.28%
OCF(TTM)19.67
OCFY6.66%
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 | 5.86 |
F-Score5
WACC10.07%
ROIC/WACC0.8
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 Year10.19%
EBIT Next 3Y8.74%
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 -4.73% in the next year.
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%.