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 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
RS had positive earnings in the past year.
In the past year RS had a positive cash flow from operations.
Each year in the past 5 years RS has been profitable.
In the past 5 years RS always reported a positive cash flow from operatings.
1.2 Ratios
RS's Return On Assets of 7.03% is amongst the best of the industry. RS outperforms 80.77% of its industry peers.
Looking at the Return On Equity, with a value of 10.20%, RS is in the better half of the industry, outperforming 76.28% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.62%, RS is doing good in the industry, outperforming 76.92% 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 12.38%.
The last Return On Invested Capital (8.62%) 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 | 8.62% |
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 71.15% of its industry peers.
In the last couple of years the Profit Margin of RS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.48%, RS is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
RS's Operating Margin has declined in the last couple of years.
The Gross Margin of RS (29.36%) is better than 67.31% 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.
Compared to 5 years ago, RS has less shares outstanding
RS has a worse debt/assets ratio than last year.
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.
RS has a better Altman-Z score (5.71) than 75.00% 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 83.33% 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 52.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.87
WACC9.95%
2.3 Liquidity
A Current Ratio of 3.18 indicates that RS has no problem at all paying its short term obligations.
The Current ratio of RS (3.18) is better than 66.03% 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 50.00% of the companies in the same 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%.
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.
Looking at the last year, RS shows a decrease in Revenue. The Revenue has decreased by -3.91% in the last year.
The Revenue has been growing slightly by 4.74% on average over the past years.
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
RS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.66% yearly.
RS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.80% yearly.
EPS Next Y6.83%
EPS Next 2Y12.47%
EPS Next 3Y4.66%
EPS Next 5YN/A
Revenue Next Year2.25%
Revenue Next 2Y3.43%
Revenue Next 3Y2.8%
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
A Price/Earnings ratio of 20.35 indicates a rather expensive valuation of RS.
75.64% of the companies in the same industry are more expensive than RS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.84. RS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.30 indicates a correct valuation of RS.
Based on the Price/Forward Earnings ratio, RS is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
RS is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RS indicates a somewhat cheap valuation: RS is cheaper than 62.18% of the companies listed in the same industry.
RS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RS is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)2.3
EPS Next 2Y12.47%
EPS Next 3Y4.66%
5. Dividend
5.1 Amount
RS has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.61, RS pays a better dividend. On top of this RS pays more dividend than 81.41% of the companies listed in the same industry.
RS's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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
33.89% of the earnings are spent on dividend by RS. This is a low number and 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 2Y12.47%
EPS Next 3Y4.66%
286.06
-4.21 (-1.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-8.9%
Ins Owners0.36%
Ins Owner Change1.3%
Market Cap15.04B
Analysts77.5
Price Target336.41 (17.6%)
Short Float %1.63%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)0.85%
PT rev (3m)0.85%
EPS NQ rev (1m)-11%
EPS NQ rev (3m)-19.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-3.68%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 14.3 | ||
| P/S | 1.1 | ||
| P/FCF | 18.07 | ||
| P/OCF | 12.22 | ||
| P/B | 2.08 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)14.06
EY4.92%
EPS(NY)20
Fwd EY6.99%
FCF(TTM)15.83
FCFY5.53%
OCF(TTM)23.4
OCFY8.18%
SpS260.34
BVpS137.56
TBVpS77.49
PEG (NY)2.98
PEG (5Y)2.3
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 | 5.71 |
F-Score5
WACC9.95%
ROIC/WACC0.87
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 Year2.25%
Revenue Next 2Y3.43%
Revenue Next 3Y2.8%
Revenue Next 5YN/A
EBIT growth 1Y-29.84%
EBIT growth 3Y-15.33%
EBIT growth 5Y3.16%
EBIT Next Year14.25%
EBIT Next 3Y9.05%
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%