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Is RELIANCE STEEL & ALUMINUM (NYSE:RS) suited for quality investing?

By Mill Chart

Last update: Jan 12, 2024

In this article we will dive into RELIANCE STEEL & ALUMINUM (NYSE:RS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed RELIANCE STEEL & ALUMINUM showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • RELIANCE STEEL & ALUMINUM has shown strong performance in revenue growth over the past 5 years, with a 11.86% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • RELIANCE STEEL & ALUMINUM demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 25.53% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • RELIANCE STEEL & ALUMINUM demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.76, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • RELIANCE STEEL & ALUMINUM exhibits impressive Profit Quality (5-year) with a 125.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of RELIANCE STEEL & ALUMINUM has been remarkable, with 30.46% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • RELIANCE STEEL & ALUMINUM demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NYSE:RS telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, RS scores 7 out of 10 in our fundamental rating. RS was compared to 156 industry peers in the Metals & Mining industry. RS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RS is valued correctly, but it does not seem to be growing.

Our latest full fundamental report of RS contains the most current fundamental analsysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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RELIANCE INC

NYSE:RS (5/21/2024, 7:04:00 PM)

After market: 300.55 0 (0%)

300.55

-2.76 (-0.91%)

RS News

News Image15 days ago - Reliance, Inc.Reliance, Inc. Announces Upcoming Conference Participation

SCOTTSDALE, Ariz., May 07, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that its management team will participate in the following...

News Image15 days ago - Market News VideoReliance Larger Than S&P 500 Component Tyson Foods
News Imagea month ago - InvestorPlaceRS Stock Earnings: Reliance Steel & Aluminum Misses EPS, Misses Revenue for Q1 2024

RS stock results show that Reliance Steel & Aluminum missed analyst estimates for earnings per share and missed on revenue for the first quarter of 2024.

News Imagea month ago - Reliance, Inc.Reliance, Inc. Reports First Quarter 2024 Financial Results

–  Net sales of $3.64 billion with tons sold up 10.3% from fourth quarter of 2023–  Gross profit margin of 31.0%–  EPS of $5.23, non-GAAP EPS of $5.30– ...

News Imagea month ago - Market News VideoNotable Tuesday Option Activity: NFLX, NVDA, RS
News Imagea month ago - Reliance, Inc.Reliance, Inc. to Announce First Quarter 2024 Results on Thursday, April 25ᵗʰ

SCOTTSDALE, Ariz., April 11, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE:RS) announced today that it will report first quarter 2024 financial results...

News Image2 months ago - Reliance, Inc.Reliance, Inc. Completes Acquisition of American Alloy Steel, Inc.

SCOTTSDALE, Ariz., April 03, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced that effective April 1, 2024, it has completed its acquisition...

News Image2 months ago - Reliance, Inc.Reliance, Inc. Acquires Mid-West Materials, Inc.

SCOTTSDALE, Ariz., April 02, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced that it has acquired all the outstanding equity interests of...

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