RELIANCE INC (RS) Stock Fundamental Analysis
NYSE:RS - New York Stock Exchange, Inc. - US7595091023 - Common Stock - Currency: USD
RS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, 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.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
RS has a Return On Assets of 7.03%. This is amongst the best in the industry. RS outperforms 82.17% of its industry peers.
RS has a Return On Equity of 10.20%. This is in the better half of the industry: RS outperforms 78.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.57%, RS is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RS is above the industry average of 11.60%.
The last Return On Invested Capital (8.57%) 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 | 7.03% | ||
| ROE | 10.2% | ||
| ROIC | 8.57% |
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 5.39%, RS is in the better half of the industry, outperforming 72.61% of the companies in the same industry.
RS's Profit Margin has been stable in the last couple of years.
The Operating Margin of RS (7.43%) is better than 60.51% of its industry peers.
In the last couple of years the Operating Margin of RS has declined.
The Gross Margin of RS (29.31%) is better than 67.52% of its industry peers.
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 | 7.43% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.31% |
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
RS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RS has been reduced compared to 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 5.91 indicates that RS is not in any danger for bankruptcy at the moment.
RS's Altman-Z score of 5.91 is fine compared to the rest of the industry. RS outperforms 76.43% of its industry peers.
The Debt to FCF ratio of RS is 1.71, which is an excellent value as it means it would take RS, only 1.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.71, RS belongs to the top of the industry, outperforming 84.08% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that RS is not too dependend on debt financing.
RS's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. RS outperforms 54.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 5.91 |
ROIC/WACC0.88
WACC9.75%
2.3 Liquidity
A Current Ratio of 3.18 indicates that RS has no problem at all paying its short term obligations.
RS's Current ratio of 3.18 is fine compared to the rest of the industry. RS outperforms 66.88% of its industry peers.
A Quick Ratio of 1.51 indicates that RS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, RS is in line with its industry, outperforming 49.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -28.52% in the last year.
RS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.86% yearly.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -3.91% in the last year.
Measured over the past years, RS shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)-28.52%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-4.73%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%0.45%
3.2 Future
Based on estimates for the next years, RS will show a small growth in Earnings Per Share. The EPS will grow by 4.66% on average per year.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y6.83%
EPS Next 2Y12.47%
EPS Next 3Y4.66%
EPS Next 5YN/A
Revenue Next Year1.87%
Revenue Next 2Y3.38%
Revenue Next 3Y3.34%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.77, which indicates a rather expensive current valuation of RS.
Based on the Price/Earnings ratio, RS is valued a bit cheaper than 74.52% of the companies in the same industry.
RS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
RS is valuated correctly with a Price/Forward Earnings ratio of 15.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 63.69% of the companies listed in the same industry.
RS is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
61.15% of the companies in the same industry are more expensive than RS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RS indicates a rather cheap valuation: RS is cheaper than 83.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)2.46
EPS Next 2Y12.47%
EPS Next 3Y4.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, RS has a reasonable but not impressive dividend return.
RS's Dividend Yield is a higher than the industry average which is at 2.61.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.75%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
33.89% 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.
DP33.89%
EPS Next 2Y12.47%
EPS Next 3Y4.66%
306.14
+4.81 (+1.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.46%
Inst Owner Change-0.5%
Ins Owners0.36%
Ins Owner Change1.3%
Market Cap16.10B
Analysts76.47
Price Target340.05 (11.08%)
Short Float %1.92%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend4.5
Dividend Growth(5Y)14.75%
DP33.89%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.6%
Min EPS beat(2)-8.1%
Max EPS beat(2)-1.11%
EPS beat(4)0
Avg EPS beat(4)-8.44%
Min EPS beat(4)-21.24%
Max EPS beat(4)-1.11%
EPS beat(8)1
Avg EPS beat(8)-3.92%
EPS beat(12)4
Avg EPS beat(12)0.11%
EPS beat(16)7
Avg EPS beat(16)2.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.66%
Revenue beat(12)0
Avg Revenue beat(12)-2.74%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)1.94%
PT rev (3m)1.63%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-6.62%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)1.81%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 15.31 | ||
| P/S | 1.18 | ||
| P/FCF | 19.34 | ||
| P/OCF | 13.08 | ||
| P/B | 2.23 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)14.06
EY4.59%
EPS(NY)20
Fwd EY6.53%
FCF(TTM)15.83
FCFY5.17%
OCF(TTM)23.4
OCFY7.64%
SpS260.34
BVpS137.56
TBVpS77.49
PEG (NY)3.19
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 10.2% | ||
| ROCE | 11.13% | ||
| ROIC | 8.57% | ||
| ROICexc | 8.8% | ||
| ROICexgc | 13.64% | ||
| OM | 7.43% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.31% | ||
| FCFM | 6.08% |
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-Score5
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 143.81% | ||
| Cap/Sales | 2.91% | ||
| Interest Coverage | 23.23 | ||
| Cash Conversion | 95.07% | ||
| Profit Quality | 112.82% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 5.91 |
F-Score5
WACC9.75%
ROIC/WACC0.88
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)-28.52%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%-4.73%
EPS Next Y6.83%
EPS Next 2Y12.47%
EPS Next 3Y4.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%0.45%
Revenue Next Year1.87%
Revenue Next 2Y3.38%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
EBIT growth 1Y-30.27%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year20.38%
EBIT Next 3Y9.01%
EBIT Next 5YN/A
FCF growth 1Y-51.13%
FCF growth 3Y21.09%
FCF growth 5Y-1.16%
OCF growth 1Y-42.06%
OCF growth 3Y21.39%
OCF growth 5Y1.9%