RELIANCE INC (RS) Stock Fundamental Analysis
NYSE:RS - New York Stock Exchange, Inc. - US7595091023 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RS. RS was compared to 154 industry peers in the Metals & Mining industry. RS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
RS had positive earnings in each of the past 5 years.
Each year in the past 5 years RS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RS (7.45%) is better than 83.12% of its industry peers.
RS has a better Return On Equity (10.87%) than 79.22% of its industry peers.
RS has a better Return On Invested Capital (9.01%) than 81.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RS is above the industry average of 11.67%.
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
RS has a Profit Margin of 5.65%. This is in the better half of the industry: RS outperforms 72.73% 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 7.73%, RS is doing good in the industry, outperforming 61.69% of the companies in the same industry.
RS's Operating Margin has declined in the last couple of years.
RS's Gross Margin of 29.34% is fine compared to the rest of the industry. RS outperforms 68.18% 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 | 7.73% | ||
| 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
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.
The debt/assets ratio for RS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.13 indicates that RS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.13, RS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
RS has a debt to FCF ratio of 1.54. This is a very positive value and a sign of high solvency as it would only need 1.54 years to pay back of all of its debts.
The Debt to FCF ratio of RS (1.54) is better than 85.06% of its industry peers.
RS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
RS's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. RS outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.03
WACC8.71%
2.3 Liquidity
RS has a Current Ratio of 3.17. This indicates that RS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.17, RS is doing good in the industry, outperforming 68.83% of the companies in the same industry.
RS has a Quick Ratio of 1.58. This is a normal value and indicates that RS is financially healthy and should not expect problems in meeting its short term obligations.
RS has a Quick ratio (1.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
RS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.61%.
The Earnings Per Share has been growing by 8.86% on average over the past years. This is quite good.
RS shows a decrease in Revenue. In the last year, the revenue decreased by -5.60%.
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)-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
Based on estimates for the next years, RS will show a small growth in Earnings Per Share. The EPS will grow by 4.46% on average per year.
Based on estimates for the next years, RS will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y7.12%
EPS Next 2Y12.08%
EPS Next 3Y4.46%
EPS Next 5YN/A
Revenue Next Year2.25%
Revenue Next 2Y3.47%
Revenue Next 3Y3.11%
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
A Price/Earnings ratio of 22.90 indicates a rather expensive valuation of RS.
74.03% of the companies in the same industry are more expensive than RS, based on the Price/Earnings ratio.
RS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.46 indicates a correct valuation of RS.
The rest of the industry has a similar Price/Forward Earnings ratio as RS.
RS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RS is valued a bit cheaper than the industry average as 61.04% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RS is valued cheaper than 83.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 13.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RS may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)2.58
EPS Next 2Y12.08%
EPS Next 3Y4.46%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 2.98, RS pays a bit more dividend than its industry peers.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
32.33% 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.
DP32.33%
EPS Next 2Y12.08%
EPS Next 3Y4.46%
326.96
+1.52 (+0.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.46%
Inst Owner Change-1.72%
Ins Owners0.36%
Ins Owner Change1.3%
Market Cap17.19B
Analysts75.29
Price Target333.57 (2.02%)
Short Float %2.39%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)-11.17%
Min EPS beat(2)-21.24%
Max EPS beat(2)-1.11%
EPS beat(4)0
Avg EPS beat(4)-7.58%
Min EPS beat(4)-21.24%
Max EPS beat(4)-1.11%
EPS beat(8)1
Avg EPS beat(8)-3.39%
EPS beat(12)4
Avg EPS beat(12)0.67%
EPS beat(16)8
Avg EPS beat(16)2.92%
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)0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.26 | ||
| P/FCF | 17.93 | ||
| P/OCF | 12.57 | ||
| P/B | 2.42 | ||
| P/tB | 4.37 | ||
| EV/EBITDA | 13.82 |
EPS(TTM)14.28
EY4.37%
EPS(NY)19.86
Fwd EY6.07%
FCF(TTM)18.24
FCFY5.58%
OCF(TTM)26.01
OCFY7.96%
SpS260.03
BVpS135.04
TBVpS74.9
PEG (NY)3.22
PEG (5Y)2.58
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 | 6.13 |
F-Score4
WACC8.71%
ROIC/WACC1.03
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 Y7.12%
EPS Next 2Y12.08%
EPS Next 3Y4.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.6%
Revenue growth 3Y-0.61%
Revenue growth 5Y4.74%
Sales Q2Q%-4.39%
Revenue Next Year2.25%
Revenue Next 2Y3.47%
Revenue Next 3Y3.11%
Revenue Next 5YN/A
EBIT growth 1Y-34.71%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year20.38%
EBIT Next 3Y9.01%
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%