RELIANCE INC (RS) Stock Fundamental Analysis
USA - NYSE:RS - US7595091023 - Common Stock
287.6 USD
-0.98 (-0.34%)
287.6 USD
0 (0%)
Taking everything into account, RS scores 6 out of 10 in our fundamental rating. RS was compared to 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years RS has been profitable.
In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
RS's Return On Assets of 7.03% is amongst the best of the industry. RS outperforms 82.69% of its industry peers.
RS's Return On Equity of 10.20% is fine compared to the rest of the industry. RS outperforms 77.56% of its industry peers.
RS has a Return On Invested Capital of 8.62%. This is in the better half of the industry: RS outperforms 78.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 12.92%.
The 3 year average ROIC (15.30%) for RS is well above the current ROIC(8.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 10.2% | ||
| ROIC | 8.62% |
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 has a Profit Margin of 5.39%. This is in the better half of the industry: RS outperforms 72.44% of its industry peers.
RS's Profit Margin has been stable in the last couple of years.
RS has a Operating Margin of 7.48%. This is in the better half of the industry: RS outperforms 62.82% of its industry peers.
In the last couple of years the Operating Margin of RS has declined.
Looking at the Gross Margin, with a value of 29.36%, RS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
RS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.36% |
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.
RS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RS has less shares outstanding
Compared to 1 year ago, RS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.73 indicates that RS is not in any danger for bankruptcy at the moment.
The Altman-Z score of RS (5.73) is better than 72.44% of its industry peers.
The Debt to FCF ratio of RS is 1.71, which is an excellent value as it means it would take RS, only 1.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.71, RS belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that RS is not too dependend on debt financing.
RS has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.93
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.18 indicates that RS has no problem at all paying its short term obligations.
RS's Current ratio of 3.18 is fine compared to the rest of the industry. RS outperforms 65.38% of its industry peers.
RS has a Quick Ratio of 1.51. 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 1.51, RS perfoms like the industry average, outperforming 50.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -28.52% 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.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -3.91% in the last year.
RS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)-28.52%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-4.73%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%0.45%
3.2 Future
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y0.18%
EPS Next 2Y10.86%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year2.15%
Revenue Next 2Y3.21%
Revenue Next 3Y2.65%
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
A Price/Earnings ratio of 20.46 indicates a rather expensive valuation of RS.
Compared to the rest of the industry, the Price/Earnings ratio of RS indicates a rather cheap valuation: RS is cheaper than 80.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RS to the average of the S&P500 Index (27.41), we can say RS is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.80, 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 64.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, RS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 67.95% 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 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)114.23
PEG (5Y)2.31
EPS Next 2Y10.86%
EPS Next 3Y5.67%
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 2.51. RS pays more dividend than 81.41% of the companies in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
RS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
RS pays out 33.89% 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.
DP33.89%
EPS Next 2Y10.86%
EPS Next 3Y5.67%
287.6
-0.98 (-0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-8.92%
Ins Owners0.36%
Ins Owner Change0.14%
Market Cap15.12B
Analysts75.29
Price Target332.11 (15.48%)
Short Float %1.91%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend4.5
Dividend Growth(5Y)14.75%
DP33.89%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.6%
Min EPS beat(2)-8.1%
Max EPS beat(2)-1.11%
EPS beat(4)0
Avg EPS beat(4)-8.44%
Min EPS beat(4)-21.24%
Max EPS beat(4)-1.11%
EPS beat(8)1
Avg EPS beat(8)-3.92%
EPS beat(12)4
Avg EPS beat(12)0.11%
EPS beat(16)7
Avg EPS beat(16)2.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.66%
Revenue beat(12)0
Avg Revenue beat(12)-2.74%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)-1.28%
PT rev (3m)-0.44%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)-6.22%
EPS NY rev (3m)-6.48%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 14.8 | ||
| P/S | 1.1 | ||
| P/FCF | 18.17 | ||
| P/OCF | 12.29 | ||
| P/B | 2.09 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)14.06
EY4.89%
EPS(NY)19.43
Fwd EY6.76%
FCF(TTM)15.83
FCFY5.5%
OCF(TTM)23.4
OCFY8.14%
SpS260.34
BVpS137.56
TBVpS77.49
PEG (NY)114.23
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 10.2% | ||
| ROCE | 11.2% | ||
| ROIC | 8.62% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 13.73% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.36% | ||
| FCFM | 6.08% |
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%
ROICexcg growth 3Y-17.15%
ROICexcg 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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 143.81% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 23.38 | ||
| Cash Conversion | 94.61% | ||
| Profit Quality | 112.82% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 5.73 |
F-Score5
WACC9.31%
ROIC/WACC0.93
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)-28.52%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-4.73%
EPS Next Y0.18%
EPS Next 2Y10.86%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%0.45%
Revenue Next Year2.15%
Revenue Next 2Y3.21%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-29.84%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year14.25%
EBIT Next 3Y9.05%
EBIT Next 5YN/A
FCF growth 1Y-51.13%
FCF growth 3Y21.09%
FCF growth 5Y-1.16%
OCF growth 1Y-42.06%
OCF growth 3Y21.39%
OCF growth 5Y1.9%