RELIANCE INC (RS)
US7595091023 - Common Stock
RS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 157 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
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.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
RS has a Return On Assets of 10.12%. This is amongst the best in the industry. RS outperforms 88.53% of its industry peers.
RS has a better Return On Equity (14.18%) than 84.08% of its industry peers.
The Return On Invested Capital of RS (11.42%) is better than 89.17% 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 8.34%.
The 3 year average ROIC (17.63%) for RS is well above the current ROIC(11.42%). The reason for the recent decline needs to be investigated.
| 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
RS has a Profit Margin of 7.42%. This is in the better half of the industry: RS outperforms 75.80% of its industry peers.
In the last couple of years the Profit Margin of RS has grown nicely.
With a decent Operating Margin value of 9.60%, RS is doing good in the industry, outperforming 64.97% of the companies in the same industry.
RS's Operating Margin has improved in the last couple of years.
The Gross Margin of RS (30.20%) is better than 73.25% 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
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
RS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RS has an improved debt to assets ratio.
2.2 Solvency
RS has an Altman-Z score of 6.56. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
RS's Altman-Z score of 6.56 is fine compared to the rest of the industry. RS outperforms 77.07% of its industry peers.
RS has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
RS has a Debt to FCF ratio of 1.20. This is amongst the best in the industry. RS outperforms 83.44% of its industry peers.
RS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.12, RS perfoms like the industry average, outperforming 56.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 6.56 |
ROIC/WACC1.02
WACC11.2%
2.3 Liquidity
A Current Ratio of 3.31 indicates that RS has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.31, RS is doing good in the industry, outperforming 64.97% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that RS should not have too much problems paying its short term obligations.
RS's Quick ratio of 1.58 is in line compared to the rest of the industry. RS outperforms 50.96% of its industry peers.
| 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.
The Earnings Per Share has been growing by 20.47% on average over the past years. This is a very strong growth
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -6.86% in the last year.
The Revenue has been growing slightly by 5.12% on average over the past years.
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 -7.32% yearly.
RS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.62% yearly.
EPS Next Y-24.98%
EPS Next 2Y-11.84%
EPS Next 3Y-7.32%
EPS Next 5YN/A
Revenue Next Year-6.6%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.62%
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 16.95, the valuation of RS can be described as correct.
RS's Price/Earnings ratio is a bit cheaper when compared to the industry. RS is cheaper than 73.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.81, RS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.69, RS is valued on the expensive side.
RS's Price/Forward Earnings ratio is in line with the industry average.
RS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 61.78% of the companies in the same industry.
RS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RS is cheaper than 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.97 | ||
| EV/EBITDA | 11.02 |
4.3 Compensation for Growth
The excellent profitability rating of RS may justify a higher PE ratio.
RS's earnings are expected to decrease with -7.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-11.84%
EPS Next 3Y-7.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, RS has a reasonable but not impressive dividend return.
RS's Dividend Yield is a higher than the industry average which is at 2.82.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of RS grows each year by 14.52%, which is quite nice.
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)14.52%
Div Incr Years13
Div Non Decr Years29
5.3 Sustainability
RS pays out 23.72% of its income as dividend. This is a sustainable payout ratio.
DP23.72%
EPS Next 2Y-11.84%
EPS Next 3Y-7.32%
RELIANCE INC
NYSE:RS (11/15/2024, 4:01:04 PM)
After market: 310.44 0 (0%)310.44
+0.47 (+0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 17.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 14.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.6% | ||
| PM (TTM) | 7.42% | ||
| GM | 30.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-22.77%
EPS 3Y43.2%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y18.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y