RUSSEL METALS INC (RUS.CA) Stock Fundamental Analysis
TSX:RUS - Toronto Stock Exchange - CA7819036046 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to RUS. RUS was compared to 13 industry peers in the Trading Companies & Distributors industry. RUS gets an excellent profitability rating and is at the same time showing great financial health properties. RUS has a decent growth rate and is not valued too expensively. RUS also has an excellent dividend rating. These ratings could make RUS a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
RUS had positive earnings in the past year.
In the past year RUS had a positive cash flow from operations.
Each year in the past 5 years RUS has been profitable.
RUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.70%, RUS is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.36%, RUS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Return On Invested Capital of RUS (7.63%) is better than 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RUS is significantly above the industry average of 7.36%.
The last Return On Invested Capital (7.63%) for RUS is well below the 3 year average (13.01%), which needs to be investigated, but indicates that RUS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 9.36% | ||
| ROIC | 7.63% |
ROA(3y)10.69%
ROA(5y)10.46%
ROE(3y)16.61%
ROE(5y)17.46%
ROIC(3y)13.01%
ROIC(5y)14.34%
1.3 Margins
RUS has a better Profit Margin (3.53%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of RUS has grown nicely.
With a decent Operating Margin value of 4.96%, RUS is doing good in the industry, outperforming 61.54% of the companies in the same industry.
RUS's Operating Margin has improved in the last couple of years.
The Gross Margin of RUS (20.68%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RUS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.96% | ||
| PM (TTM) | 3.53% | ||
| GM | 20.68% |
OM growth 3Y-28.49%
OM growth 5Y5.93%
PM growth 3Y-28.35%
PM growth 5Y12.64%
GM growth 3Y-10.17%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RUS is creating some value.
The number of shares outstanding for RUS has been reduced compared to 1 year ago.
Compared to 5 years ago, RUS has less shares outstanding
RUS has a better debt/assets ratio than last year.
2.2 Solvency
RUS has an Altman-Z score of 4.34. This indicates that RUS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RUS (4.34) is better than 61.54% of its industry peers.
RUS has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as RUS would need 2.09 years to pay back of all of its debts.
The Debt to FCF ratio of RUS (2.09) is better than 76.92% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that RUS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, RUS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.87
WACC8.72%
2.3 Liquidity
A Current Ratio of 3.37 indicates that RUS has no problem at all paying its short term obligations.
RUS's Current ratio of 3.37 is fine compared to the rest of the industry. RUS outperforms 76.92% of its industry peers.
A Quick Ratio of 1.56 indicates that RUS should not have too much problems paying its short term obligations.
RUS's Quick ratio of 1.56 is fine compared to the rest of the industry. RUS outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
RUS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.82%.
Measured over the past years, RUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.28% on average per year.
RUS shows a decrease in Revenue. In the last year, the revenue decreased by -0.13%.
Measured over the past years, RUS shows a small growth in Revenue. The Revenue has been growing by 3.00% on average per year.
EPS 1Y (TTM)-29.82%
EPS 3Y-26.66%
EPS 5Y12.28%
EPS Q2Q%-8.54%
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.42%
Revenue growth 5Y3%
Sales Q2Q%10.6%
3.2 Future
RUS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.23% yearly.
The Revenue is expected to grow by 7.40% on average over the next years.
EPS Next Y41.63%
EPS Next 2Y24.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.44%
Revenue Next 2Y7.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.61, which indicates a correct valuation of RUS.
The rest of the industry has a similar Price/Earnings ratio as RUS.
RUS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.48 indicates a reasonable valuation of RUS.
Based on the Price/Forward Earnings ratio, RUS is valued a bit cheaper than 76.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. RUS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
61.54% of the companies in the same industry are more expensive than RUS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as RUS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RUS has an outstanding profitability rating, which may justify a higher PE ratio.
RUS's earnings are expected to grow with 24.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.35
EPS Next 2Y24.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RUS has a Yearly Dividend Yield of 3.85%.
RUS's Dividend Yield is a higher than the industry average which is at 8.59.
Compared to an average S&P500 Dividend Yield of 2.35, RUS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
5.2 History
The dividend of RUS has a limited annual growth rate of 1.78%.
RUS has been paying a dividend for at least 10 years, so it has a reliable track record.
RUS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.78%
Div Incr Years2
Div Non Decr Years15
5.3 Sustainability
63.12% of the earnings are spent on dividend by RUS. This is not a sustainable payout ratio.
The dividend of RUS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.12%
EPS Next 2Y24.23%
EPS Next 3YN/A
TSX:RUS (7/11/2025, 7:00:00 PM)
44.17
-0.5 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners28.37%
Inst Owner ChangeN/A
Ins Owners0.93%
Ins Owner ChangeN/A
Market Cap2.49B
Analysts78
Price Target52.53 (18.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend1.66
Dividend Growth(5Y)1.78%
DP63.12%
Div Incr Years2
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.61%
Min EPS beat(2)-11.45%
Max EPS beat(2)30.66%
EPS beat(4)2
Avg EPS beat(4)4.77%
Min EPS beat(4)-11.45%
Max EPS beat(4)30.66%
EPS beat(8)5
Avg EPS beat(8)4.12%
EPS beat(12)9
Avg EPS beat(12)10.94%
EPS beat(16)13
Avg EPS beat(16)16.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)1.52%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.02%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)7
Avg Revenue beat(16)2.39%
PT rev (1m)0%
PT rev (3m)-5.21%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 10.48 | ||
| P/S | 0.57 | ||
| P/FCF | 10.82 | ||
| P/OCF | 7.65 | ||
| P/B | 1.51 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)2.66
EY6.02%
EPS(NY)4.21
Fwd EY9.54%
FCF(TTM)4.08
FCFY9.25%
OCF(TTM)5.78
OCFY13.08%
SpS77.73
BVpS29.31
TBVpS26.76
PEG (NY)0.4
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 9.36% | ||
| ROCE | 10.06% | ||
| ROIC | 7.63% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 9.23% | ||
| OM | 4.96% | ||
| PM (TTM) | 3.53% | ||
| GM | 20.68% | ||
| FCFM | 5.25% |
ROA(3y)10.69%
ROA(5y)10.46%
ROE(3y)16.61%
ROE(5y)17.46%
ROIC(3y)13.01%
ROIC(5y)14.34%
ROICexc(3y)16.12%
ROICexc(5y)16.7%
ROICexgc(3y)17.51%
ROICexgc(5y)18.2%
ROCE(3y)17.19%
ROCE(5y)18.93%
ROICexcg growth 3Y-32.42%
ROICexcg growth 5Y5.5%
ROICexc growth 3Y-32.26%
ROICexc growth 5Y5.68%
OM growth 3Y-28.49%
OM growth 5Y5.93%
PM growth 3Y-28.35%
PM growth 5Y12.64%
GM growth 3Y-10.17%
GM growth 5Y3.7%
F-Score4
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 115.52% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.55% | ||
| Profit Quality | 148.93% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 4.34 |
F-Score4
WACC8.72%
ROIC/WACC0.87
Cap/Depr(3y)95.77%
Cap/Depr(5y)75.63%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.23%
Profit Quality(3y)129.68%
Profit Quality(5y)373.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.82%
EPS 3Y-26.66%
EPS 5Y12.28%
EPS Q2Q%-8.54%
EPS Next Y41.63%
EPS Next 2Y24.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.13%
Revenue growth 3Y0.42%
Revenue growth 5Y3%
Sales Q2Q%10.6%
Revenue Next Year13.44%
Revenue Next 2Y7.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.48%
EBIT growth 3Y-28.19%
EBIT growth 5Y9.11%
EBIT Next Year68.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.83%
FCF growth 3Y-2.73%
FCF growth 5Y3.38%
OCF growth 1Y-15.47%
OCF growth 3Y4.14%
OCF growth 5Y6.61%