1.36%
10.13%
3.56%
-2.63%
3.90%
93.97%
158.31%
AI Spotlight on RS
Company Description
Reliance Steel & Aluminum Co. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally.The company distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products; and provides metals processing services to general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries.It also distributes non-ferrous metals products and tubular building products; and manufactures specialty extruded metals, fabricated parts, and welded components.
As of December 31, 2021, the company operated a network of approximately 315 locations in 40 states in the United States and 13 in other countries.It sells its products directly to original equipment manufacturers, which primarily include small machine shops and fabricators.The company was founded in 1939 and is headquartered in Los Angeles, California.
Market Data
| Last Price | 296.54 |
| Change Percentage | 1.36% |
| Open | 293.71 |
| Previous Close | 292.57 |
| Market Cap ( Millions) | 16049 |
| Volume | 417361 |
| Year High | 342.2 |
| Year Low | 256.98 |
| M A 50 | 291.75 |
| M A 200 | 291.6 |
Financial Ratios
| FCF Yield | 6.56% |
| Dividend Yield | 1.48% |
| ROE | 13.62% |
| Debt / Equity | 20.93% |
| Net Debt / EBIDTA | 76.37% |
| Price To Book | 2.21 |
| Price Earnings Ratio | 15.56 |
| Price To FCF | 15.25 |
| Price To sales | 1.14 |
| EV / EBITDA | 10.78 |
News
- Jan -23 - Reasons Why You Should Hold Reliance Stock in Your Portfolio
- Jan -06 - Here's Why You Should Retain Reliance Stock in Your Portfolio
- Dec -02 - Reliance initiated with a Neutral at Goldman Sachs
- Nov -06 - Reliance, Inc. Announces Participation at the Baird 2024 Global Industrial Conference
- Oct -25 - Reliance Inc.'s Earnings Lag Estimates in Q3, Revenues Beat
- Oct -24 - Reliance, Inc. (RS) Q3 2024 Earnings Call Transcript
- Oct -24 - Reliance (RS) Misses Q3 Earnings Estimates
- Oct -24 - Reliance, Inc. Reports Third Quarter 2024 Financial Results
- Oct -10 - Reliance, Inc. to Announce Third Quarter 2024 Results on Thursday, October 24th
- Oct -02 - Reliance, Inc. Announces Appointment of James K. Kamsickas to Board of Directors and Douglas W.
- Sep -17 - Reliance Announces Amended and Restated $1.5B Credit Facility
- Sep -16 - Reliance, Inc. Announces Amended and Restated $1.5 Billion Credit Facility
- Sep -12 - Reliance, Inc. to Ring the Closing Bell at the New York Stock Exchange to Commemorate its 30th Anniversary as a Public Company
- Jul -26 - Reliance's (RS) Earnings Miss, Revenues Beat Estimates in Q2
- Jul -25 - Reliance, Inc. (RS) Q2 2024 Earnings Call Transcript
- Jul -25 - Reliance (RS) Q2 Earnings Miss Estimates
- Jul -18 - Earnings Preview: Reliance (RS) Q2 Earnings Expected to Decline
- Jul -16 - Reliance (RS) Buys FerrouSouth Assets, Ups Tolling Operations
- Jul -11 - Reliance, Inc. to Announce Second Quarter 2024 Results on Thursday, July 25th
- Jun -06 - All You Need to Know About Reliance (RS) Rating Upgrade to Strong Buy
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Carbon Steel
Expected Growth : 2 %
What the company do ?
Carbon Steel from Reliance Steel & Aluminum Co. is a high-strength, versatile alloy used in construction, automotive, and industrial applications.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s Carbon Steel segment growth is driven by increasing demand from the automotive and construction industries, coupled with the company's strategic acquisitions and expansion into new markets. Additionally, the segment benefits from the ongoing trend of infrastructure development and the need for sustainable and cost-effective building materials.
Segment n°2 -> Aluminum
Expected Growth : 3 %
What the company do ?
Aluminum from Reliance Steel & Aluminum Co. is a lightweight, corrosion-resistant metal used in aerospace, automotive, and construction industries.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s 3% growth in Aluminum segment is driven by increasing demand from automotive and aerospace industries, coupled with rising infrastructure spending. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth. Furthermore, the ongoing trend of lightweighting in the automotive industry, which favors aluminum over steel, has also boosted demand.
Segment n°3 -> Stainless Steel
Expected Growth : 1 %
What the company do ?
Stainless Steel from Reliance Steel & Aluminum Co. is a corrosion-resistant alloy steel with high strength, durability, and aesthetic appeal for various industrial applications.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s stainless steel segment growth is driven by increasing demand from the aerospace and automotive industries, coupled with rising infrastructure spending and growing adoption in consumer goods. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.
Segment n°4 -> Alloy
Expected Growth : 4 %
What the company do ?
Alloy from Reliance Steel & Aluminum Co. refers to a mixture of metals, often including aluminum, copper, and zinc, used in various industrial applications.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s Alloy segment growth is driven by increasing demand from the aerospace and defense industries, rising adoption in electric vehicle production, and growing use in construction and infrastructure projects. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.
Segment n°5 -> Toll Processing and Logistics
Expected Growth : 1 %
What the company do ?
Toll processing and logistics from Reliance Steel & Aluminum Co. involves processing and distributing metal products for customers who lack in-house capabilities.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s Toll Processing and Logistics segment growth is driven by increasing demand for value-added services, strategic acquisitions, and expansion into new markets. Additionally, the company's ability to provide customized solutions, improve operational efficiency, and invest in digital technologies also contribute to its growth.
Segment n°6 -> Other and Eliminations
Expected Growth : 0 %
What the company do ?
Other and Eliminations from Reliance Steel & Aluminum Co. refers to the consolidation of non-steel businesses and intercompany eliminations.
Why we expect these perspectives ?
Other and Eliminations segment of Reliance Steel & Aluminum Co. experienced 0% growth, driven by stagnant sales from non-core businesses, lack of new initiatives, and absence of significant cost savings or productivity improvements.
Segment n°7 -> Copper and Brass
Expected Growth : 2 %
What the company do ?
Copper and Brass from Reliance Steel & Aluminum Co. refers to a range of copper and copper-zinc alloy products, including sheets, plates, and tubes, used in various industrial applications.
Why we expect these perspectives ?
Reliance Steel & Aluminum Co.'s Copper and Brass segment growth is driven by increasing demand from the electrical and construction industries, as well as rising infrastructure spending. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth, with a 2% growth rate.
Reliance Steel & Aluminum Co. Products
| Product Range | What is it ? |
|---|---|
| Carbon Steel | A type of steel alloy containing a combination of iron and carbon, known for its strength, durability, and versatility |
| Aluminum Sheets | Thin, flat sheets of aluminum alloy, often used in fabrication, construction, and manufacturing |
| Stainless Steel Tubing | Hollow tubes made from corrosion-resistant stainless steel, used in high-temperature and high-pressure applications |
| Galvanized Steel Coils | Coils of steel coated with a layer of zinc for corrosion protection, used in construction, automotive, and industrial applications |
| Copper Alloys | Alloys of copper, often combined with other metals, used in electrical, plumbing, and industrial applications |
| Titanium Alloys | High-strength, low-density alloys of titanium, used in aerospace, industrial, and medical applications |
Reliance Steel & Aluminum Co.'s Porter Forces
Threat Of Substitutes
Reliance Steel & Aluminum Co. faces moderate threat from substitutes due to the availability of alternative materials and products.
Bargaining Power Of Customers
Reliance Steel & Aluminum Co. has a diverse customer base, which reduces the bargaining power of individual customers.
Bargaining Power Of Suppliers
Reliance Steel & Aluminum Co. relies on a few large suppliers, which gives them some bargaining power, but the company's scale and diversification mitigate this risk.
Threat Of New Entrants
The capital-intensive nature of the steel and aluminum industry, combined with regulatory barriers, makes it difficult for new entrants to join the market.
Intensity Of Rivalry
The steel and aluminum industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 13.43% |
| Debt Cost | 3.95% |
| Equity Weight | 86.57% |
| Equity Cost | 8.52% |
| WACC | 7.91% |
| Leverage | 15.52% |
Reliance Steel & Aluminum Co. : Quality Control
Reliance Steel & Aluminum Co. passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| STLD | Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and … |
| CLF | Cleveland-Cliffs Inc. operates as a flat-rolled steel producer in North America. The company offers carbon steel products, such as hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, hot-dip galvannealed, aluminized, enameling, and advanced … |
| NEU | NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road … |
| CMC | Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. The company processes and sells ferrous … |
| BCC | Boise Cascade Company manufactures wood products and distributes building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Boise Cascade
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Reliance Steel & Aluminum
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CMC
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Steel Dynamics
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NewMarket
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6
