RELIANCE INC (RS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RS - US7595091023 - Common Stock
279.32 USD
-1.27 (-0.45%)
279.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 153 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RS was profitable.
RS had a positive operating cash flow in the past year.
RS had positive earnings in each of the past 5 years.
In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RS (6.90%) is better than 77.78% of its industry peers.
RS has a Return On Equity of 9.97%. This is in the better half of the industry: RS outperforms 73.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.10%, RS is in the better half of the industry, outperforming 73.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RS is above the industry average of 13.09%.
The last Return On Invested Capital (8.10%) 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 | 6.9% | ||
| ROE | 9.97% | ||
| ROIC | 8.1% |
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's Profit Margin of 5.23% is fine compared to the rest of the industry. RS outperforms 69.93% of its industry peers.
RS's Profit Margin has been stable in the last couple of years.
RS has a Operating Margin of 7.23%. This is in the better half of the industry: RS outperforms 62.75% of its industry peers.
In the last couple of years the Operating Margin of RS has declined.
RS has a Gross Margin of 29.06%. This is in the better half of the industry: RS outperforms 66.01% of its industry peers.
RS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.23% | ||
| 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
RS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
RS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.71 indicates that RS is not in any danger for 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 67.97% 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.
Looking at the Debt to FCF ratio, with a value of 2.09, RS is in the better half of the industry, outperforming 77.12% of the companies in the same industry.
RS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
RS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. RS outperforms 47.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.88
WACC9.18%
2.3 Liquidity
RS has a Current Ratio of 4.43. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RS (4.43) is better than 75.82% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.08, RS is in line with its industry, outperforming 57.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The earnings per share for RS have decreased strongly by -23.25% 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.
The Revenue has decreased by -0.88% in the past year.
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
Based on estimates for the next years, RS will show a small growth in Earnings Per Share. The EPS will grow by 6.62% on average per year.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y-4.24%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue Next Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
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 19.87, RS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RS indicates a rather cheap valuation: RS is cheaper than 81.05% of the companies listed in the same industry.
RS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 14.95 indicates a correct valuation of RS.
64.71% 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 36.59. RS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 14.95 |
4.2 Price Multiples
68.63% 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 84.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.06 | ||
| EV/EBITDA | 12.29 |
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 2Y8.72%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.80%.
RS's Dividend Yield is rather good when compared to the industry average which is at 2.72. RS pays more dividend than 81.05% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, RS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of RS is nicely growing with an annual growth rate of 14.75%!
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
RS pays out 34.66% of its income as dividend. This is a sustainable payout ratio.
RS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.66%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
279.32
-1.27 (-0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners83.68%
Inst Owner Change6.49%
Ins Owners0.36%
Ins Owner Change0%
Market Cap14.61B
Revenue(TTM)13.92B
Net Income(TTM)728.20M
Analysts75.56
Price Target329.44 (17.94%)
Short Float %2.24%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)-0.81%
PT rev (3m)-2.07%
EPS NQ rev (1m)-15.23%
EPS NQ rev (3m)-15.59%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-10.36%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.87 | ||
| Fwd PE | 14.95 | ||
| P/S | 1.05 | ||
| P/FCF | 22.06 | ||
| P/OCF | 14.2 | ||
| P/B | 2 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)14.06
EY5.03%
EPS(NY)18.69
Fwd EY6.69%
FCF(TTM)12.66
FCFY4.53%
OCF(TTM)19.67
OCFY7.04%
SpS266.25
BVpS139.71
TBVpS79.54
PEG (NY)N/A
PEG (5Y)2.24
Graham Number210.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 9.97% | ||
| ROCE | 10.52% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.33% | ||
| ROICexgc | 12.58% | ||
| OM | 7.23% | ||
| 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 | 1.07 | ||
| Cap/Depr | 131.16% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 21 | ||
| Cash Conversion | 80.02% | ||
| Profit Quality | 90.91% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 5.71 |
F-Score5
WACC9.18%
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)-23.25%
EPS 3Y-10.36%
EPS 5Y8.86%
EPS Q2Q%0%
EPS Next Y-4.24%
EPS Next 2Y8.72%
EPS Next 3Y6.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%6.75%
Revenue Next Year3.22%
Revenue Next 2Y3.69%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y-25.39%
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 6 / 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 -4.24% 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%.