RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
282.76 USD
+3.44 (+1.23%)
282.76 USD
0 (0%)
RS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 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.
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
The Return On Assets of RS (6.90%) is better than 77.27% of its industry peers.
RS has a Return On Equity of 9.97%. This is in the better half of the industry: RS outperforms 73.38% of its industry peers.
RS has a better Return On Invested Capital (8.10%) than 72.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RS is above the industry average of 13.20%.
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
RS's Profit Margin of 5.23% is fine compared to the rest of the industry. RS outperforms 69.48% of its industry peers.
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 61.04% 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 66.23% 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.
The number of shares outstanding for RS has been reduced compared to 1 year ago.
RS has less shares outstanding than it did 5 years ago.
RS has a worse debt/assets ratio than last year.
2.2 Solvency
RS has an Altman-Z score of 5.70. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.70, RS is doing good in the industry, outperforming 67.53% of the companies in the same industry.
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's Debt to FCF ratio of 2.09 is fine compared to the rest of the industry. RS outperforms 77.92% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that RS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, RS is in line with its industry, outperforming 49.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.85
WACC9.52%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
The Current ratio of RS (4.43) is better than 77.27% 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.
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
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.62% yearly.
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 20.11, 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 rather cheap valuation: RS is cheaper than 82.47% of the companies listed in the same industry.
RS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
The Price/Forward Earnings ratio is 15.13, which 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 66.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. RS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RS is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.33 | ||
| EV/EBITDA | 12.23 |
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)2.27
EPS Next 2Y8.72%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
RS's Dividend Yield is rather good when compared to the industry average which is at 2.60. RS pays more dividend than 82.47% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of RS grows each year by 14.75%, 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)14.75%
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.
RS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.66%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
282.76
+3.44 (+1.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change6.45%
Ins Owners0.36%
Ins Owner Change0%
Market Cap14.79B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.44 (16.51%)
Short Float %2.24%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)-0.03%
PT rev (3m)-0.81%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 15.13 | ||
| P/S | 1.06 | ||
| P/FCF | 22.33 | ||
| P/OCF | 14.37 | ||
| P/B | 2.02 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 12.23 |
EPS(TTM)14.06
EY4.97%
EPS(NY)18.69
Fwd EY6.61%
FCF(TTM)12.66
FCFY4.48%
OCF(TTM)19.67
OCFY6.96%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.27
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 | 5.7 |
F-Score5
WACC9.52%
ROIC/WACC0.85
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 6 / 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%.