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RUSSEL METALS INC (RUS.CA) Stock Fundamental Analysis

TSX:RUS - Toronto Stock Exchange - CA7819036046 - Common Stock - Currency: CAD

41.66  -0.03 (-0.07%)

Fundamental Rating

6

Taking everything into account, RUS scores 6 out of 10 in our fundamental rating. RUS was compared to 13 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making RUS a very profitable company, without any liquidiy or solvency issues. RUS has a valuation in line with the averages, but it does not seem to be growing. Finally RUS also has an excellent dividend rating. With these ratings, RUS could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year RUS was profitable.
RUS had a positive operating cash flow in the past year.
Each year in the past 5 years RUS has been profitable.
In the past 5 years RUS always reported a positive cash flow from operatings.
RUS.CA Yearly Net Income VS EBIT VS OCF VS FCFRUS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

Looking at the Return On Assets, with a value of 7.30%, RUS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Return On Equity of RUS (11.30%) is comparable to the rest of the industry.
The Return On Invested Capital of RUS (9.49%) is better than 69.23% of its industry peers.
RUS had an Average Return On Invested Capital over the past 3 years of 19.25%. This is significantly above the industry average of 8.14%.
The last Return On Invested Capital (9.49%) for RUS is well below the 3 year average (19.25%), which needs to be investigated, but indicates that RUS had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.3%
ROE 11.3%
ROIC 9.49%
ROA(3y)14.63%
ROA(5y)9.88%
ROE(3y)24.91%
ROE(5y)17.14%
ROIC(3y)19.25%
ROIC(5y)14.03%
RUS.CA Yearly ROA, ROE, ROICRUS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

With a decent Profit Margin value of 4.27%, RUS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of RUS has grown nicely.
Looking at the Operating Margin, with a value of 5.76%, RUS is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of RUS has declined.
RUS has a Gross Margin of 21.10%. This is in the lower half of the industry: RUS underperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of RUS has remained more or less at the same level.
Industry RankSector Rank
OM 5.76%
PM (TTM) 4.27%
GM 21.1%
OM growth 3Y28.93%
OM growth 5Y-1.98%
PM growth 3Y86.59%
PM growth 5Y2.4%
GM growth 3Y3.97%
GM growth 5Y0.42%
RUS.CA Yearly Profit, Operating, Gross MarginsRUS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RUS is creating value.
RUS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RUS has been reduced compared to 5 years ago.
The debt/assets ratio for RUS has been reduced compared to a year ago.
RUS.CA Yearly Shares OutstandingRUS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
RUS.CA Yearly Total Debt VS Total AssetsRUS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

RUS has an Altman-Z score of 4.78. This indicates that RUS is financially healthy and has little risk of bankruptcy at the moment.
RUS's Altman-Z score of 4.78 is fine compared to the rest of the industry. RUS outperforms 76.92% of its industry peers.
The Debt to FCF ratio of RUS is 1.14, which is an excellent value as it means it would take RUS, only 1.14 years of fcf income to pay off all of its debts.
RUS has a better Debt to FCF ratio (1.14) than 100.00% of its industry peers.
RUS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
RUS's Debt to Equity ratio of 0.19 is amongst the best of the industry. RUS outperforms 84.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.14
Altman-Z 4.78
ROIC/WACC1.04
WACC9.13%
RUS.CA Yearly LT Debt VS Equity VS FCFRUS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 3.37 indicates that RUS has no problem at all paying its short term obligations.
The Current ratio of RUS (3.37) is better than 76.92% of its industry peers.
A Quick Ratio of 1.59 indicates that RUS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.59, RUS is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.37
Quick Ratio 1.59
RUS.CA Yearly Current Assets VS Current LiabilitesRUS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

3

3. Growth

3.1 Past

RUS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.70%.
RUS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
The Revenue has decreased by -7.51% in the past year.
Measured over the past years, RUS shows a small growth in Revenue. The Revenue has been growing by 1.58% on average per year.
EPS 1Y (TTM)-29.7%
EPS 3Y76.24%
EPS 5Y3.4%
EPS Q2Q%-28.05%
Revenue 1Y (TTM)-7.51%
Revenue growth 3Y18.78%
Revenue growth 5Y1.58%
Sales Q2Q%-1.81%

3.2 Future

Based on estimates for the next years, RUS will show a small growth in Earnings Per Share. The EPS will grow by 0.73% on average per year.
RUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y-29.35%
EPS Next 2Y-0.11%
EPS Next 3Y0.73%
EPS Next 5YN/A
Revenue Next Year-5.09%
Revenue Next 2Y3.06%
Revenue Next 3Y3.1%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RUS.CA Yearly Revenue VS EstimatesRUS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
RUS.CA Yearly EPS VS EstimatesRUS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.75, the valuation of RUS can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as RUS.
When comparing the Price/Earnings ratio of RUS to the average of the S&P500 Index (29.39), we can say RUS is valued rather cheaply.
The Price/Forward Earnings ratio is 10.04, which indicates a very decent valuation of RUS.
RUS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RUS is cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RUS to the average of the S&P500 Index (94.38), we can say RUS is valued rather cheaply.
Industry RankSector Rank
PE 13.75
Fwd PE 10.04
RUS.CA Price Earnings VS Forward Price EarningsRUS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

RUS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RUS is valued a bit cheaper than 76.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.36
EV/EBITDA 7.85
RUS.CA Per share dataRUS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The decent profitability rating of RUS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.05
EPS Next 2Y-0.11%
EPS Next 3Y0.73%

7

5. Dividend

5.1 Amount

RUS has a Yearly Dividend Yield of 4.12%, which is a nice return.
Compared to an average industry Dividend Yield of 3.96, RUS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, RUS pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.12%

5.2 History

The dividend of RUS has a limited annual growth rate of 0.85%.
RUS has paid a dividend for at least 10 years, which is a reliable track record.
RUS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.85%
Div Incr Years2
Div Non Decr Years15
RUS.CA Yearly Dividends per shareRUS.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

RUS pays out 54.00% of its income as dividend. This is a bit on the high side, but may be sustainable.
RUS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54%
EPS Next 2Y-0.11%
EPS Next 3Y0.73%
RUS.CA Yearly Income VS Free CF VS DividendRUS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M 400M
RUS.CA Dividend Payout.RUS.CA Dividend Payout, showing the Payout Ratio.RUS.CA Dividend Payout.PayoutRetained Earnings

RUSSEL METALS INC

TSX:RUS (2/11/2025, 7:00:00 PM)

41.66

-0.03 (-0.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners26.8%
Inst Owner ChangeN/A
Ins Owners0.89%
Ins Owner ChangeN/A
Market Cap2.39B
Analysts78
Price Target53.38 (28.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.12%
Yearly Dividend1.59
Dividend Growth(5Y)0.85%
DP54%
Div Incr Years2
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.07%
Min EPS beat(2)-0.14%
Max EPS beat(2)0%
EPS beat(4)3
Avg EPS beat(4)2.76%
Min EPS beat(4)-0.14%
Max EPS beat(4)9.54%
EPS beat(8)6
Avg EPS beat(8)7.15%
EPS beat(12)10
Avg EPS beat(12)12.23%
EPS beat(16)14
Avg EPS beat(16)19.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-0.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)-0.06%
Revenue beat(8)0
Avg Revenue beat(8)-2.12%
Revenue beat(12)4
Avg Revenue beat(12)1.31%
Revenue beat(16)7
Avg Revenue beat(16)2.63%
PT rev (1m)0.8%
PT rev (3m)12.14%
EPS NQ rev (1m)-10.1%
EPS NQ rev (3m)-35.02%
EPS NY rev (1m)-1.24%
EPS NY rev (3m)-3.59%
Revenue NQ rev (1m)-2.01%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
Industry RankSector Rank
PE 13.75
Fwd PE 10.04
P/S 0.56
P/FCF 8.36
P/OCF 6.25
P/B 1.49
P/tB 1.62
EV/EBITDA 7.85
EPS(TTM)3.03
EY7.27%
EPS(NY)4.15
Fwd EY9.96%
FCF(TTM)4.98
FCFY11.96%
OCF(TTM)6.67
OCFY16.01%
SpS73.86
BVpS27.94
TBVpS25.77
PEG (NY)N/A
PEG (5Y)4.05
Profitability
Industry RankSector Rank
ROA 7.3%
ROE 11.3%
ROCE 12.43%
ROIC 9.49%
ROICexc 10.7%
ROICexgc 11.53%
OM 5.76%
PM (TTM) 4.27%
GM 21.1%
FCFM 6.74%
ROA(3y)14.63%
ROA(5y)9.88%
ROE(3y)24.91%
ROE(5y)17.14%
ROIC(3y)19.25%
ROIC(5y)14.03%
ROICexc(3y)23.1%
ROICexc(5y)16.38%
ROICexgc(3y)25.16%
ROICexgc(5y)17.86%
ROCE(3y)25.2%
ROCE(5y)18.44%
ROICexcg growth 3Y45.07%
ROICexcg growth 5Y0.35%
ROICexc growth 3Y45.36%
ROICexc growth 5Y-0.17%
OM growth 3Y28.93%
OM growth 5Y-1.98%
PM growth 3Y86.59%
PM growth 5Y2.4%
GM growth 3Y3.97%
GM growth 5Y0.42%
F-Score5
Asset Turnover1.71
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 1.14
Debt/EBITDA 0.96
Cap/Depr 131.62%
Cap/Sales 2.29%
Interest Coverage 58.12
Cash Conversion 120.52%
Profit Quality 157.75%
Current Ratio 3.37
Quick Ratio 1.59
Altman-Z 4.78
F-Score5
WACC9.13%
ROIC/WACC1.04
Cap/Depr(3y)73.15%
Cap/Depr(5y)64.38%
Cap/Sales(3y)1.04%
Cap/Sales(5y)1%
Profit Quality(3y)98.42%
Profit Quality(5y)397.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.7%
EPS 3Y76.24%
EPS 5Y3.4%
EPS Q2Q%-28.05%
EPS Next Y-29.35%
EPS Next 2Y-0.11%
EPS Next 3Y0.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.51%
Revenue growth 3Y18.78%
Revenue growth 5Y1.58%
Sales Q2Q%-1.81%
Revenue Next Year-5.09%
Revenue Next 2Y3.06%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y-26.94%
EBIT growth 3Y53.14%
EBIT growth 5Y-0.43%
EBIT Next Year-10.81%
EBIT Next 3Y4.57%
EBIT Next 5YN/A
FCF growth 1Y156.73%
FCF growth 3Y3.97%
FCF growth 5Y52.87%
OCF growth 1Y162.15%
OCF growth 3Y7.56%
OCF growth 5Y39.34%