RELIANCE INC (RS) Stock Fundamental Analysis
USA - NYSE:RS - US7595091023 - Common Stock
285.6 USD
+2.44 (+0.86%)
285.6 USD
0 (0%)
Overall RS gets a fundamental rating of 6 out of 10. We evaluated RS against 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.
1. Profitability
1.1 Basic Checks
RS had positive earnings in the past year.
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
RS has a better Return On Assets (7.03%) than 82.69% of its industry peers.
With a decent Return On Equity value of 10.20%, RS is doing good in the industry, outperforming 77.56% of the companies in the same industry.
The Return On Invested Capital of RS (8.62%) is better than 78.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 12.87%.
The 3 year average ROIC (15.30%) for RS is well above the current ROIC(8.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 10.2% | ||
| ROIC | 8.62% |
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
RS has a better Profit Margin (5.39%) than 72.44% of its industry peers.
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 7.48%, RS is doing good in the industry, outperforming 62.82% of the companies in the same industry.
RS's Operating Margin has declined in the last couple of years.
RS's Gross Margin of 29.36% is fine compared to the rest of the industry. RS outperforms 66.67% 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 | 7.48% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.36% |
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.
RS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RS has been reduced compared to 5 years ago.
RS has a worse debt/assets ratio than last year.
2.2 Solvency
RS has an Altman-Z score of 5.69. 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 5.69, RS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.71, RS belongs to the best of the industry, outperforming 83.97% 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 has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: RS outperforms 55.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 5.69 |
ROIC/WACC0.95
WACC9.09%
2.3 Liquidity
RS has a Current Ratio of 3.18. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RS (3.18) is better than 64.74% of its industry peers.
RS has a Quick Ratio of 1.51. This is a normal value and indicates that RS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RS (1.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.52%.
RS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.86% yearly.
The Revenue has decreased by -3.91% in the past 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
The Earnings Per Share is expected to grow by 6.69% on average over the next years.
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-0.14%
EPS Next 2Y11.12%
EPS Next 3Y6.69%
EPS Next 5YN/A
Revenue Next Year2.15%
Revenue Next 2Y3.21%
Revenue Next 3Y2.65%
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.
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
With a Price/Earnings ratio of 20.31, RS is valued on the expensive side.
RS's Price/Earnings ratio is rather cheap when compared to the industry. RS is cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. RS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.63, which indicates a correct valuation of RS.
Based on the Price/Forward Earnings ratio, RS is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RS to the average of the S&P500 Index (23.21), we can say RS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than 69.87% of the companies in the same industry.
87.18% of the companies in the same industry are more expensive than RS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.29
EPS Next 2Y11.12%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, RS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, RS pays a better dividend. On top of this RS pays more dividend than 83.97% of the companies listed in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
On average, the dividend of RS grows each year by 14.75%, 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 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
RS pays out 33.89% of its income as dividend. This is a sustainable payout ratio.
The dividend of RS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.89%
EPS Next 2Y11.12%
EPS Next 3Y6.69%
285.6
+2.44 (+0.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change-8.92%
Ins Owners0.36%
Ins Owner Change0.14%
Market Cap15.02B
Analysts75.29
Price Target332.11 (16.29%)
Short Float %1.99%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)0%
PT rev (3m)-0.44%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-12.66%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-6.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.1 | ||
| P/FCF | 18.04 | ||
| P/OCF | 12.2 | ||
| P/B | 2.08 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)14.06
EY4.92%
EPS(NY)19.52
Fwd EY6.84%
FCF(TTM)15.83
FCFY5.54%
OCF(TTM)23.4
OCFY8.19%
SpS260.34
BVpS137.56
TBVpS77.49
PEG (NY)N/A
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 10.2% | ||
| ROCE | 11.2% | ||
| ROIC | 8.62% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 13.73% | ||
| OM | 7.48% | ||
| PM (TTM) | 5.39% | ||
| GM | 29.36% | ||
| 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 | 23.38 | ||
| Cash Conversion | 94.61% | ||
| Profit Quality | 112.82% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 5.69 |
F-Score5
WACC9.09%
ROIC/WACC0.95
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 Y-0.14%
EPS Next 2Y11.12%
EPS Next 3Y6.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%0.45%
Revenue Next Year2.15%
Revenue Next 2Y3.21%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-29.84%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year13.77%
EBIT Next 3Y8.99%
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%