RUSSEL METALS INC (RUS.CA) Stock Fundamental Analysis
TSX:RUS - Toronto Stock Exchange - CA7819036046 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to RUS. RUS was compared to 13 industry peers in the Trading Companies & Distributors industry. RUS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RUS has a correct valuation and a medium growth rate. RUS also has an excellent dividend rating. With these ratings, RUS could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year RUS was profitable.
In the past year RUS had a positive cash flow from operations.
Each year in the past 5 years RUS has been profitable.
RUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RUS (6.86%) is better than 76.92% of its industry peers.
RUS has a Return On Equity of 9.71%. This is in the better half of the industry: RUS outperforms 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.99%, RUS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RUS is significantly above the industry average of 7.89%.
The last Return On Invested Capital (8.99%) for RUS is well below the 3 year average (13.01%), which needs to be investigated, but indicates that RUS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.86% | ||
| ROE | 9.71% | ||
| ROIC | 8.99% |
ROA(3y)10.69%
ROA(5y)10.46%
ROE(3y)16.61%
ROE(5y)17.46%
ROIC(3y)13.01%
ROIC(5y)14.34%
1.3 Margins
The Profit Margin of RUS (3.78%) is better than 69.23% of its industry peers.
In the last couple of years the Profit Margin of RUS has grown nicely.
The Operating Margin of RUS (5.23%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RUS has grown nicely.
RUS has a worse Gross Margin (20.88%) than 61.54% of its industry peers.
RUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.23% | ||
| PM (TTM) | 3.78% | ||
| GM | 20.88% |
OM growth 3Y-28.49%
OM growth 5Y5.93%
PM growth 3Y-28.35%
PM growth 5Y12.64%
GM growth 3Y-10.17%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RUS is creating some value.
The number of shares outstanding for RUS has been reduced compared to 1 year ago.
The number of shares outstanding for RUS has been reduced compared to 5 years ago.
Compared to 1 year ago, RUS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.23 indicates that RUS is not in any danger for bankruptcy at the moment.
The Altman-Z score of RUS (5.23) is better than 84.62% of its industry peers.
RUS has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.78, RUS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that RUS is not too dependend on debt financing.
RUS's Debt to Equity ratio of 0.11 is amongst the best of the industry. RUS outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 5.23 |
ROIC/WACC0.96
WACC9.34%
2.3 Liquidity
A Current Ratio of 3.13 indicates that RUS has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.13, RUS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that RUS should not have too much problems paying its short term obligations.
RUS's Quick ratio of 1.21 is fine compared to the rest of the industry. RUS outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RUS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.11%.
Measured over the past years, RUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.32% on average per year.
The Revenue has decreased by -5.41% in the past year.
RUS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.00% yearly.
EPS 1Y (TTM)-37.11%
EPS 3Y-26.52%
EPS 5Y17.32%
EPS Q2Q%-39.62%
Revenue 1Y (TTM)-5.41%
Revenue growth 3Y0.42%
Revenue growth 5Y3%
Sales Q2Q%1.95%
3.2 Future
RUS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.15% yearly.
Based on estimates for the next years, RUS will show a small growth in Revenue. The Revenue will grow by 7.32% on average per year.
EPS Next Y37.18%
EPS Next 2Y22.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y7.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.99, RUS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of RUS is on the same level as its industry peers.
RUS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 10.50 indicates a reasonable valuation of RUS.
RUS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RUS is cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RUS to the average of the S&P500 Index (22.10), we can say RUS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RUS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RUS indicates a somewhat cheap valuation: RUS is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RUS has a very decent profitability rating, which may justify a higher PE ratio.
RUS's earnings are expected to grow with 22.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)0.87
EPS Next 2Y22.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, RUS is a good candidate for dividend investing.
RUS's Dividend Yield is a higher than the industry average which is at 4.05.
Compared to an average S&P500 Dividend Yield of 2.33, RUS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of RUS has a limited annual growth rate of 1.78%.
RUS has been paying a dividend for at least 10 years, so it has a reliable track record.
RUS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.78%
Div Incr Years2
Div Non Decr Years15
5.3 Sustainability
60.62% of the earnings are spent on dividend by RUS. This is not a sustainable payout ratio.
The dividend of RUS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.62%
EPS Next 2Y22.15%
EPS Next 3YN/A
TSX:RUS (3/7/2025, 7:00:00 PM)
40.77
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners27.89%
Inst Owner ChangeN/A
Ins Owners0.93%
Ins Owner ChangeN/A
Market Cap2.33B
Analysts78
Price Target55.42 (35.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend1.66
Dividend Growth(5Y)1.78%
DP60.62%
Div Incr Years2
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.27%
Revenue beat(12)3
Avg Revenue beat(12)0.27%
Revenue beat(16)7
Avg Revenue beat(16)2.51%
PT rev (1m)3.82%
PT rev (3m)6.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.43%
EPS NY rev (1m)-6.49%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 10.5 | ||
| P/S | 0.55 | ||
| P/FCF | 9.18 | ||
| P/OCF | 6.77 | ||
| P/B | 1.4 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)2.72
EY6.67%
EPS(NY)3.88
Fwd EY9.52%
FCF(TTM)4.44
FCFY10.89%
OCF(TTM)6.02
OCFY14.76%
SpS74.59
BVpS29.03
TBVpS26.48
PEG (NY)0.4
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.86% | ||
| ROE | 9.71% | ||
| ROCE | 11.94% | ||
| ROIC | 8.99% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 10.01% | ||
| OM | 5.23% | ||
| PM (TTM) | 3.78% | ||
| GM | 20.88% | ||
| FCFM | 5.95% |
ROA(3y)10.69%
ROA(5y)10.46%
ROE(3y)16.61%
ROE(5y)17.46%
ROIC(3y)13.01%
ROIC(5y)14.34%
ROICexc(3y)16.12%
ROICexc(5y)16.7%
ROICexgc(3y)17.51%
ROICexgc(5y)18.2%
ROCE(3y)17.19%
ROCE(5y)18.93%
ROICexcg growth 3Y-32.42%
ROICexcg growth 5Y5.5%
ROICexc growth 3Y-32.26%
ROICexc growth 5Y5.68%
OM growth 3Y-28.49%
OM growth 5Y5.93%
PM growth 3Y-28.35%
PM growth 5Y12.64%
GM growth 3Y-10.17%
GM growth 5Y3.7%
F-Score6
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 117.6% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 44.6 | ||
| Cash Conversion | 114.75% | ||
| Profit Quality | 157.58% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 5.23 |
F-Score6
WACC9.34%
ROIC/WACC0.96
Cap/Depr(3y)95.77%
Cap/Depr(5y)75.63%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.23%
Profit Quality(3y)129.68%
Profit Quality(5y)373.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.11%
EPS 3Y-26.52%
EPS 5Y17.32%
EPS Q2Q%-39.62%
EPS Next Y37.18%
EPS Next 2Y22.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.41%
Revenue growth 3Y0.42%
Revenue growth 5Y3%
Sales Q2Q%1.95%
Revenue Next Year13.56%
Revenue Next 2Y7.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-31.99%
EBIT growth 3Y-28.19%
EBIT growth 5Y9.11%
EBIT Next Year75.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.78%
FCF growth 3Y-2.73%
FCF growth 5Y3.38%
OCF growth 1Y-25.51%
OCF growth 3Y4.14%
OCF growth 5Y6.61%