Exploring RELIANCE INC (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 INC (NYSE:RS) is suited for quality investing. Investors should of course do their own research, but we spotted RELIANCE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into RELIANCE INC's Quality Metrics.

• Over the past 5 years, RELIANCE INC has experienced impressive revenue growth, with 5.12% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of RELIANCE INC stands at 24.33%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• RELIANCE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.95, 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.
• With a robust Profit Quality (5-year) ratio of 130.0%, RELIANCE INC 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.
• With a robust 5-year EBIT growth of 12.28%, RELIANCE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of RELIANCE INC 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.

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.

We assign a fundamental rating of 7 out of 10 to RS. 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.

Check the latest full fundamental report of RS for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.