RELIANCE INC (RS) Stock Fundamental Analysis
USA - NYSE:RS - US7595091023 - Common Stock
279.89 USD
-2.34 (-0.83%)
281.8 USD
+1.91 (+0.68%)
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 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 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.
RS had a positive operating cash flow in the past year.
RS had positive earnings in each of the past 5 years.
RS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RS has a better Return On Assets (6.90%) than 80.52% of its industry peers.
Looking at the Return On Equity, with a value of 9.97%, RS is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.09%, RS is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RS is above the industry average of 12.40%.
The last Return On Invested Capital (8.09%) for RS is well below the 3 year average (15.30%), which needs to be investigated, but indicates that RS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROIC | 8.09% |
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 5.23%. This is in the better half of the industry: RS outperforms 72.73% of its industry peers.
RS's Profit Margin has been stable in the last couple of years.
The Operating Margin of RS (7.22%) is better than 62.99% of its industry peers.
In the last couple of years the Operating Margin of RS has declined.
With a decent Gross Margin value of 29.06%, RS is doing good in the industry, outperforming 66.88% of the companies in the same industry.
In the last couple of years the Gross Margin of RS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.22% | ||
| 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
An Altman-Z score of 5.72 indicates that RS is not in any danger for bankruptcy at the moment.
RS's Altman-Z score of 5.72 is fine compared to the rest of the industry. RS outperforms 70.13% 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.
RS has a better Debt to FCF ratio (2.09) than 81.17% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that RS is not too dependend on debt financing.
RS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. RS outperforms 48.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.72 |
ROIC/WACC0.91
WACC8.88%
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 75.32% 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.
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
The Earnings Per Share is expected to grow by 6.89% on average over the next years.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y-1.05%
EPS Next 2Y10.97%
EPS Next 3Y6.89%
EPS Next 5YN/A
Revenue Next Year2.09%
Revenue Next 2Y3.32%
Revenue Next 3Y2.65%
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
A Price/Earnings ratio of 19.91 indicates a rather expensive valuation of RS.
Based on the Price/Earnings ratio, RS is valued cheaply inside the industry as 80.52% of the companies are valued more expensively.
RS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.38 indicates a correct valuation of RS.
66.88% of the companies in the same industry are more expensive than RS, based on the Price/Forward Earnings ratio.
RS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than the industry average as 67.53% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RS is valued cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.23 | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y10.97%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, RS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, RS pays a better dividend. On top of this RS pays more dividend than 81.82% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.33, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
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 2Y10.97%
EPS Next 3Y6.89%
279.89
-2.34 (-0.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-0.04%
Ins Owners0.36%
Ins Owner Change0.14%
Market Cap14.72B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.55 (17.74%)
Short Float %1.9%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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%
PT rev (3m)-2.33%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-7.37%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 14.38 | ||
| P/S | 1.06 | ||
| P/FCF | 22.23 | ||
| P/OCF | 14.31 | ||
| P/B | 2.01 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 12.33 |
EPS(TTM)14.06
EY5.02%
EPS(NY)19.47
Fwd EY6.96%
FCF(TTM)12.59
FCFY4.5%
OCF(TTM)19.56
OCFY6.99%
SpS264.73
BVpS138.91
TBVpS79.09
PEG (NY)N/A
PEG (5Y)2.25
Graham Number209.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROCE | 10.51% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.32% | ||
| ROICexgc | 12.57% | ||
| OM | 7.22% | ||
| 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 | 1.08 | ||
| Cap/Depr | 131.16% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 20.99 | ||
| Cash Conversion | 80.07% | ||
| Profit Quality | 90.91% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 5.72 |
F-Score5
WACC8.88%
ROIC/WACC0.91
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-1.05%
EPS Next 2Y10.97%
EPS Next 3Y6.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
Revenue Next Year2.09%
Revenue Next 2Y3.32%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
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 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 -1.05% 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%.