RELIANCE INC (RS)
US7595091023 - Common Stock
Overall RS gets a fundamental rating of 7 out of 10. We evaluated RS against 154 industry peers in the Metals & Mining industry. RS gets an excellent profitability rating and is at the same time showing great financial health properties. RS is valued correctly, but it does not seem to be growing.
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.
In the past 5 years RS has always been profitable.
In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RS (12.75%) is better than 92.21% of its industry peers.
With an excellent Return On Equity value of 17.30%, RS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RS has a better Return On Invested Capital (13.80%) than 86.36% of its industry peers.
RS had an Average Return On Invested Capital over the past 3 years of 17.63%. This is significantly above the industry average of 8.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.75% | ||
| ROE | 17.3% | ||
| ROIC | 13.8% |
ROA(3y)15.13%
ROA(5y)11.71%
ROE(3y)22.16%
ROE(5y)17.43%
ROIC(3y)17.63%
ROIC(5y)14.14%
1.3 Margins
RS has a better Profit Margin (9.02%) than 75.32% of its industry peers.
In the last couple of years the Profit Margin of RS has grown nicely.
With a decent Operating Margin value of 11.75%, RS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Operating Margin of RS has grown nicely.
With a decent Gross Margin value of 30.71%, RS is doing good in the industry, outperforming 75.97% of the companies in the same industry.
RS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | 9.02% | ||
| GM | 30.71% |
OM growth 3Y12.66%
OM growth 5Y6.81%
PM growth 3Y29.16%
PM growth 5Y10.42%
GM growth 3Y-1.28%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RS is creating value.
The number of shares outstanding for RS has been reduced compared to 1 year ago.
Compared to 5 years ago, RS has less shares outstanding
Compared to 1 year ago, RS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.14 indicates that RS is not in any danger for bankruptcy at the moment.
The Altman-Z score of RS (7.14) is better than 81.17% of its industry peers.
RS has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.95, RS belongs to the best of the industry, outperforming 88.96% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that RS is not too dependend on debt financing.
RS's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. RS outperforms 52.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 7.14 |
ROIC/WACC1.6
WACC8.61%
2.3 Liquidity
RS has a Current Ratio of 5.66. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
RS has a better Current ratio (5.66) than 82.47% of its industry peers.
RS has a Quick Ratio of 3.23. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.23, RS is doing good in the industry, outperforming 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.66 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.53%.
The Earnings Per Share has been growing by 20.47% on average over the past years. This is a very strong growth
The Revenue for RS has decreased by -13.03% in the past year. This is quite bad
Measured over the past years, RS shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
EPS 1Y (TTM)-24.53%
EPS 3Y43.2%
EPS 5Y20.47%
EPS growth Q2Q-19.42%
Revenue 1Y (TTM)-13.03%
Revenue growth 3Y18.88%
Revenue growth 5Y5.12%
Revenue growth Q2Q-7.57%
3.2 Future
Based on estimates for the next years, RS will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.04% on average per year.
RS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.07% yearly.
EPS Next Y-8.82%
EPS Next 2Y-4.82%
EPS Next 3Y-10.04%
EPS Next 5YN/A
Revenue Next Year-3.94%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.07%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 13.05, the valuation of RS can be described as correct.
RS's Price/Earnings ratio is rather cheap when compared to the industry. RS is cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of RS to the average of the S&P500 Index (28.11), we can say RS is valued rather cheaply.
A Price/Forward Earnings ratio of 14.32 indicates a correct valuation of RS.
Based on the Price/Forward Earnings ratio, RS is valued a bit cheaper than 72.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RS to the average of the S&P500 Index (20.39), we can say RS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
RS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RS is cheaper than 67.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RS is valued cheaper than 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.08 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
The excellent profitability rating of RS may justify a higher PE ratio.
A cheap valuation may be justified as RS's earnings are expected to decrease with -10.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-4.82%
EPS Next 3Y-10.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, RS has a reasonable but not impressive dividend return.
RS's Dividend Yield is a higher than the industry average which is at 2.86.
Compared to the average S&P500 Dividend Yield of 2.40, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
On average, the dividend of RS grows each year by 14.52%, 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)14.52%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
17.82% of the earnings are spent on dividend by RS. This is a low number and sustainable payout ratio.
DP17.82%
EPS Next 2Y-4.82%
EPS Next 3Y-10.04%
RELIANCE INC
NYSE:RS (5/8/2024, 12:30:37 PM)
294.75
-0.61 (-0.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 14.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.75% | ||
| ROE | 17.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.75% | ||
| PM (TTM) | 9.02% | ||
| GM | 30.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.66 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.53%
EPS 3Y43.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.03%
Revenue growth 3Y18.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y