RELIANCE INC (RS) Stock Fundamental Analysis
USA - NYSE:RS - US7595091023 - Common Stock
278.73 USD
+1.6 (+0.58%)
279 USD
+0.27 (+0.1%)
Taking everything into account, RS scores 6 out of 10 in our fundamental rating. RS was compared to 154 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.
1. Profitability
1.1 Basic Checks
In the past year RS was profitable.
In the past year RS had a positive cash flow from operations.
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
With an excellent Return On Assets value of 6.90%, RS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
RS has a Return On Equity of 9.97%. This is in the better half of the industry: RS outperforms 76.62% of its industry peers.
RS has a Return On Invested Capital of 8.09%. This is in the better half of the industry: RS outperforms 74.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 12.40%.
The 3 year average ROIC (15.30%) for RS is well above the current ROIC(8.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROIC | 8.09% |
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
With a decent Profit Margin value of 5.23%, RS is doing good in the industry, outperforming 72.73% 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.
With a decent Operating Margin value of 7.22%, RS is doing good in the industry, outperforming 62.99% of the companies in the same industry.
In the last couple of years the Operating Margin of RS has declined.
With a decent Gross Margin value of 29.06%, RS is doing good in the industry, outperforming 67.53% of the companies in the same industry.
In the last couple of years the Gross Margin of RS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.22% | ||
| PM (TTM) | 5.23% | ||
| GM | 29.06% |
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.
Compared to 1 year ago, RS has less shares outstanding
RS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RS has a worse debt to assets ratio.
2.2 Solvency
RS has an Altman-Z score of 5.71. This indicates that RS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.71, RS is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
The Debt to FCF ratio of RS is 2.09, which is a good value as it means it would take RS, 2.09 years of fcf income to pay off all of its debts.
RS's Debt to FCF ratio of 2.09 is amongst the best of the industry. RS outperforms 81.17% of its industry peers.
RS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, RS is in line with its industry, outperforming 48.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.92
WACC8.82%
2.3 Liquidity
A Current Ratio of 4.43 indicates that RS has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.43, RS is doing good in the industry, outperforming 75.32% of the companies in the same industry.
RS has a Quick Ratio of 2.08. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.08, RS perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.25%.
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 -0.88%.
RS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)-23.25%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
3.2 Future
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.89% yearly.
Based on estimates for the next years, RS will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y-1.05%
EPS Next 2Y10.97%
EPS Next 3Y6.89%
EPS Next 5YN/A
Revenue Next Year2.09%
Revenue Next 2Y3.32%
Revenue Next 3Y2.65%
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 19.82, the valuation of RS can be described as rather expensive.
Based on the Price/Earnings ratio, RS is valued cheaply inside the industry as 80.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, RS is valued a bit cheaper.
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 the industry average as 66.23% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.09. RS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
68.83% of the companies in the same industry are more expensive than RS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RS is valued cheaper than 84.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.14 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y10.97%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.48, RS pays a better dividend. On top of this RS pays more dividend than 82.47% of the companies listed in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of RS is nicely growing with an annual growth rate of 14.75%!
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)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
34.66% of the earnings are spent on dividend by RS. This is a low number and sustainable payout ratio.
RS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.66%
EPS Next 2Y10.97%
EPS Next 3Y6.89%
278.73
+1.6 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-0.04%
Ins Owners0.36%
Ins Owner Change0.14%
Market Cap14.66B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target332.11 (19.15%)
Short Float %1.9%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend4.5
Dividend Growth(5Y)14.75%
DP34.66%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.07%
Min EPS beat(2)-8.1%
Max EPS beat(2)-4.04%
EPS beat(4)0
Avg EPS beat(4)-8.62%
Min EPS beat(4)-21.24%
Max EPS beat(4)-1.11%
EPS beat(8)1
Avg EPS beat(8)-4.03%
EPS beat(12)3
Avg EPS beat(12)-0.37%
EPS beat(16)6
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)0.17%
Revenue beat(8)1
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-2.7%
Revenue beat(16)3
Avg Revenue beat(16)-1.71%
PT rev (1m)0%
PT rev (3m)-2.33%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-7.37%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.05 | ||
| P/FCF | 22.14 | ||
| P/OCF | 14.25 | ||
| P/B | 2.01 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)14.06
EY5.04%
EPS(NY)19.47
Fwd EY6.98%
FCF(TTM)12.59
FCFY4.52%
OCF(TTM)19.56
OCFY7.02%
SpS264.73
BVpS138.91
TBVpS79.09
PEG (NY)N/A
PEG (5Y)2.24
Graham Number209.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROCE | 10.51% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.32% | ||
| ROICexgc | 12.57% | ||
| OM | 7.22% | ||
| PM (TTM) | 5.23% | ||
| GM | 29.06% | ||
| FCFM | 4.75% |
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%
ROICexgc growth 3Y-17.15%
ROICexgc 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-Score5
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 131.16% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 20.99 | ||
| Cash Conversion | 80.07% | ||
| Profit Quality | 90.91% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 5.71 |
F-Score5
WACC8.82%
ROIC/WACC0.92
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)-23.25%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%0%
EPS Next Y-1.05%
EPS Next 2Y10.97%
EPS Next 3Y6.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
Revenue Next Year2.09%
Revenue Next 2Y3.32%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-25.45%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year13.77%
EBIT Next 3Y8.99%
EBIT Next 5YN/A
FCF growth 1Y-55.98%
FCF growth 3Y21.09%
FCF growth 5Y-1.16%
OCF growth 1Y-47.37%
OCF growth 3Y21.39%
OCF growth 5Y1.9%
RELIANCE INC / RS FAQ
What is the fundamental rating for RS stock?
ChartMill assigns a fundamental rating of 6 / 10 to RS.
Can you provide the valuation status for RELIANCE INC?
ChartMill assigns a valuation rating of 5 / 10 to RELIANCE INC (RS). This can be considered as Fairly Valued.
What is the profitability of RS stock?
RELIANCE INC (RS) has a profitability rating of 7 / 10.
What is the earnings growth outlook for RELIANCE INC?
The Earnings per Share (EPS) of RELIANCE INC (RS) is expected to decline by -1.05% in the next year.
Is the dividend of RELIANCE INC sustainable?
The dividend rating of RELIANCE INC (RS) is 6 / 10 and the dividend payout ratio is 34.66%.