Exploring NYSE:RS's quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if RELIANCE STEEL & ALUMINUM (NYSE:RS) is suited for quality investing. Investors should of couse do their own research, but we spotted RELIANCE STEEL & ALUMINUM showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:RS highlighted

• The 5-year revenue growth of RELIANCE STEEL & ALUMINUM has been remarkable, with 11.86% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 27.52%, RELIANCE STEEL & ALUMINUM showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• RELIANCE STEEL & ALUMINUM maintains a healthy Debt/Free Cash Flow Ratio of 0.67, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 125.0%, RELIANCE STEEL & ALUMINUM highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• RELIANCE STEEL & ALUMINUM has consistently achieved strong EBIT growth over the past 5 years, with a 30.46% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of RELIANCE STEEL & ALUMINUM has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:RS

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

RS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 151 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 is valued correctly, but it does not seem to be growing.

For an up to date full fundamental analysis you can check the fundamental report of RS

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.