RELIANCE INC (RS) Stock Fundamental Analysis
NYSE:RS - New York Stock Exchange, Inc. - US7595091023 - Common Stock - Currency: USD
Overall RS gets a fundamental rating of 6 out of 10. We evaluated RS against 153 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.
1. Profitability
1.1 Basic Checks
In the past year RS was profitable.
RS had a positive operating cash flow in the past year.
In the past 5 years RS has always been profitable.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
RS has a better Return On Assets (7.45%) than 83.01% of its industry peers.
RS has a Return On Equity of 10.87%. This is amongst the best in the industry. RS outperforms 81.70% of its industry peers.
RS's Return On Invested Capital of 9.01% is amongst the best of the industry. RS outperforms 81.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RS is significantly above the industry average of 8.56%.
The last Return On Invested Capital (9.01%) for RS is well below the 3 year average (15.30%), which needs to be investigated, but indicates that RS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 10.87% | ||
| ROIC | 9.01% |
ROA(3y)13.1%
ROA(5y)11.73%
ROE(3y)18.46%
ROE(5y)17.16%
ROIC(3y)15.3%
ROIC(5y)14.22%
1.3 Margins
Looking at the Profit Margin, with a value of 5.65%, RS is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
In the last couple of years the Profit Margin of RS has remained more or less at the same level.
RS's Operating Margin of 7.73% is fine compared to the rest of the industry. RS outperforms 62.75% of its industry peers.
In the last couple of years the Operating Margin of RS has declined.
The Gross Margin of RS (29.34%) is better than 67.97% of its industry peers.
RS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.73% | ||
| PM (TTM) | 5.65% | ||
| GM | 29.34% |
OM growth 3Y-14.8%
OM growth 5Y-1.51%
PM growth 3Y-14.23%
PM growth 5Y-0.22%
GM growth 3Y-2.25%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RS is creating some value.
RS has less shares outstanding than it did 1 year ago.
RS has less shares outstanding than it did 5 years ago.
RS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.84 indicates that RS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.84, RS is doing good in the industry, outperforming 75.82% of the companies in the same industry.
The Debt to FCF ratio of RS is 1.54, which is an excellent value as it means it would take RS, only 1.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RS (1.54) is better than 84.31% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that RS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.15, RS perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 5.84 |
ROIC/WACC0.9
WACC10.05%
2.3 Liquidity
A Current Ratio of 3.17 indicates that RS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.17, RS is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that RS should not have too much problems paying its short term obligations.
The Quick ratio of RS (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -33.61% in the last year.
Measured over the past years, RS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.86% on average per year.
RS shows a decrease in Revenue. In the last year, the revenue decreased by -5.60%.
RS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)-33.61%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-28.87%
Revenue 1Y (TTM)-5.6%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%-4.39%
3.2 Future
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.99% yearly.
Based on estimates for the next years, RS will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y10.23%
EPS Next 2Y13.06%
EPS Next 3Y5.99%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.27%
Revenue Next 3Y4.31%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.75 indicates a rather expensive valuation of RS.
Based on the Price/Earnings ratio, RS is valued a bit cheaper than 75.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, RS is valued at the same level.
The Price/Forward Earnings ratio is 14.66, which indicates a correct valuation of RS.
67.97% of the companies in the same industry are more expensive than RS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.44. RS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 60.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RS indicates a rather cheap valuation: RS is cheaper than 81.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)2.34
EPS Next 2Y13.06%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, RS has a reasonable but not impressive dividend return.
RS's Dividend Yield is a higher than the industry average which is at 2.93.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
On average, the dividend of RS grows each year by 14.75%, which is quite nice.
RS has paid a dividend for at least 10 years, which is a reliable track record.
RS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
32.33% of the earnings are spent on dividend by RS. This is a low number and sustainable payout ratio.
The dividend of RS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.33%
EPS Next 2Y13.06%
EPS Next 3Y5.99%
296.32
+0.47 (+0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.44%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change0.5%
Market Cap15.67B
Analysts76.47
Price Target334.59 (12.92%)
Short Float %1.86%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend4.5
Dividend Growth(5Y)14.75%
DP32.33%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.66%
Min EPS beat(2)-21.24%
Max EPS beat(2)-0.08%
EPS beat(4)0
Avg EPS beat(4)-7.32%
Min EPS beat(4)-21.24%
Max EPS beat(4)-0.08%
EPS beat(8)1
Avg EPS beat(8)-3.26%
EPS beat(12)4
Avg EPS beat(12)0.75%
EPS beat(16)8
Avg EPS beat(16)2.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.9%
Revenue beat(12)0
Avg Revenue beat(12)-2.56%
Revenue beat(16)4
Avg Revenue beat(16)-1.22%
PT rev (1m)0%
PT rev (3m)0.88%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.15 | ||
| P/FCF | 16.34 | ||
| P/OCF | 11.46 | ||
| P/B | 2.21 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 12.66 |
EPS(TTM)14.28
EY4.82%
EPS(NY)20.21
Fwd EY6.82%
FCF(TTM)18.14
FCFY6.12%
OCF(TTM)25.87
OCFY8.73%
SpS258.55
BVpS134.27
TBVpS74.48
PEG (NY)2.03
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 10.87% | ||
| ROCE | 11.7% | ||
| ROIC | 9.01% | ||
| ROICexc | 9.3% | ||
| ROICexgc | 14.55% | ||
| OM | 7.73% | ||
| PM (TTM) | 5.65% | ||
| GM | 29.34% | ||
| FCFM | 7.01% |
ROA(3y)13.1%
ROA(5y)11.73%
ROE(3y)18.46%
ROE(5y)17.16%
ROIC(3y)15.3%
ROIC(5y)14.22%
ROICexc(3y)17.1%
ROICexc(5y)15.58%
ROICexgc(3y)27.77%
ROICexgc(5y)25.53%
ROCE(3y)19.87%
ROCE(5y)18.47%
ROICexcg growth 3Y-17.15%
ROICexcg growth 5Y-1.39%
ROICexc growth 3Y-16.41%
ROICexc growth 5Y0.04%
OM growth 3Y-14.8%
OM growth 5Y-1.51%
PM growth 3Y-14.23%
PM growth 5Y-0.22%
GM growth 3Y-2.25%
GM growth 5Y-0.38%
F-Score4
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.54 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 149.31% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 27.11 | ||
| Cash Conversion | 102.79% | ||
| Profit Quality | 124.25% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 5.84 |
F-Score4
WACC10.05%
ROIC/WACC0.9
Cap/Depr(3y)164.53%
Cap/Depr(5y)134.41%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.38%
Profit Quality(3y)100.25%
Profit Quality(5y)122.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.61%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-28.87%
EPS Next Y10.23%
EPS Next 2Y13.06%
EPS Next 3Y5.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.6%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%-4.39%
Revenue Next Year3.11%
Revenue Next 2Y4.27%
Revenue Next 3Y4.31%
Revenue Next 5YN/A
EBIT growth 1Y-34.71%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year23.25%
EBIT Next 3Y10.44%
EBIT Next 5YN/A
FCF growth 1Y-44.27%
FCF growth 3Y21.09%
FCF growth 5Y-1.16%
OCF growth 1Y-34.83%
OCF growth 3Y21.39%
OCF growth 5Y1.9%