(RS) Reliance Steel & Aluminum - Overview
Sector: Basic Materials | Industry: Steel | Exchange: NYSE (USA) | Market Cap: 18.735m USD | Total Return: 24.2% in 12m
Avg Turnover: 97.6M
EPS Trend: -92.7%
Qual. Beats: 1
Rev. Trend: -57.8%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Confidence
Reliance, Inc. (NYSE: RS) is a major North American metals service center and diversified solutions provider. The company bridges the gap between primary metal producers and end-users by maintaining a vast inventory of alloy, aluminum, carbon steel, and specialty metals. Its business model focuses on high-mix, low-volume orders, providing value-added processing services such as cutting, shearing, and leveling to over 125,000 customers across diverse sectors including aerospace, energy, and non-residential construction.
The metals service center industry acts as a critical supply chain buffer, reducing inventory carrying costs for original equipment manufacturers and small machine shops. Unlike primary mills that require large-scale production runs, service centers like Reliance profit from the spread between bulk purchase prices and the processed resale price. Investors looking for deeper fundamental metrics can find comprehensive valuation data on ValueRay.
Founded in 1939 and headquartered in Phoenix, Arizona, the firm rebranded from Reliance Steel & Aluminum Co. to Reliance, Inc. in early 2024 to reflect its broader material capabilities. The company operates through a decentralized structure, allowing individual locations to adapt pricing and inventory to local market conditions.
- Fluctuating carbon and stainless steel prices impact gross profit margins
- Non-residential construction activity levels dictate core volume demand trends
- Strategic acquisitions of smaller service centers drive inorganic revenue growth
- Aerospace and semiconductor sector recovery boosts high-margin specialty metal sales
- Value-added processing services expansion offsets commodity price volatility risks
| Net Income: 806.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -3.59 > 1.0 |
| NWC/Revenue: 23.80% < 20% (prev 21.07%; Δ 2.73% < -1%) |
| CFO/TA 0.08 > 3% & CFO 918.3m > Net Income 806.0m |
| Net Debt (2.11b) to EBITDA (1.40b): 1.51 < 3 |
| Current Ratio: 4.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (52.0m) vs 12m ago -2.67% < -2% |
| Gross Margin: 27.22% > 18% (prev 0.27%; Δ 2.69k% > 0.5%) |
| Asset Turnover: 140.1% > 50% (prev 131.9%; Δ 8.19% > 0%) |
| Interest Coverage Ratio: 18.77 > 6 (EBITDA TTM 1.40b / Interest Expense TTM 59.6m) |
| A: 0.33 (Total Current Assets 4.57b - Total Current Liabilities 1.04b) / Total Assets 10.8b |
| B: 0.67 (Retained Earnings 7.22b / Total Assets 10.8b) |
| C: 0.11 (EBIT TTM 1.12b / Avg Total Assets 10.6b) |
| D: 1.94 (Book Value of Equity 7.12b / Total Liabilities 3.68b) |
| Altman-Z'' = 7.06 = AAA |
| DSRI: 1.07 (Receivables 1.95b/1.68b, Revenue 14.8b/13.7b) |
| GMI: 1.00 (GM 27.22% / 27.33%) |
| AQI: 0.95 (AQ_t 0.30 / AQ_t-1 0.32) |
| SGI: 1.08 (Revenue 14.8b / 13.7b) |
| TATA: -0.01 (NI 806.0m - CFO 918.3m) / TA 10.8b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 367.00 with a total of 247,100 shares traded.
Over the past week, the price has changed by +1.81%,
over one month by +2.05%,
over three months by +16.74% and
over the past year by +24.22%.
Reliance Steel & Aluminum has received a consensus analysts rating of 3.63. Therefore, it is recommended to hold RS.
- StrongBuy: 2
- Buy: 1
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 357.8 | -2.5% |
P/E Trailing = 23.9244
P/E Forward = 20.3666
P/S = 1.2628
P/B = 2.6122
P/EG = 2.2909
Revenue TTM = 14.8b USD
EBIT TTM = 1.12b USD
EBITDA TTM = 1.40b USD
Long Term Debt = 1.69b USD (from longTermDebt, last quarter)
Short Term Debt = 69.2m USD (from shortTermDebt, last quarter)
Debt = 2.36b USD (from shortLongTermDebtTotal, last quarter) + Leases 335.5m
Net Debt = 2.11b USD (calculated: Debt 2.36b - CCE 249.7m)
Enterprise Value = 20.8b USD (18.7b + Debt 2.36b - CCE 249.7m)
Interest Coverage Ratio = 18.77 (Ebit TTM 1.12b / Interest Expense TTM 59.6m)
EV/FCF = 34.06x (Enterprise Value 20.8b / FCF TTM 612.1m)
FCF Yield = 2.94% (FCF TTM 612.1m / Enterprise Value 20.8b)
FCF Margin = 4.13% (FCF TTM 612.1m / Revenue TTM 14.8b)
Net Margin = 5.43% (Net Income TTM 806.0m / Revenue TTM 14.8b)
Gross Margin = 27.22% ((Revenue TTM 14.8b - Cost of Revenue TTM 10.8b) / Revenue TTM)
Gross Margin QoQ = 27.39% (prev 25.31%)
Tobins Q-Ratio = 1.93 (Enterprise Value 20.8b / Total Assets 10.8b)
Interest Expense / Debt = 2.52% (Interest Expense 59.6m / Debt 2.36b)
Taxrate = 24.01% (83.9m / 349.5m)
NOPAT = 850.3m (EBIT 1.12b * (1 - 24.01%))
Current Ratio = 4.39 (Total Current Assets 4.57b / Total Current Liabilities 1.04b)
Debt / Equity = 0.33 (Debt 2.36b / totalStockholderEquity, last quarter 7.12b)
Debt / EBITDA = 1.51 (Net Debt 2.11b / EBITDA 1.40b)
Debt / FCF = 3.45 (Net Debt 2.11b / FCF TTM 612.1m)
Total Stockholder Equity = 7.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.61% (Net Income 806.0m / Total Assets 10.8b)
RoE = 11.18% (Net Income TTM 806.0m / Total Stockholder Equity 7.21b)
RoCE = 12.57% (EBIT 1.12b / Capital Employed (Equity 7.21b + L.T.Debt 1.69b))
RoIC = 8.87% (NOPAT 850.3m / Invested Capital 9.59b)
WACC = 8.24% (E(18.7b)/V(21.1b) * Re(9.04%) + D(2.36b)/V(21.1b) * Rd(2.52%) * (1-Tc(0.24)))
Discount Rate = 9.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -4.81%
[DCF] Terminal Value 73.10% ; FCFF base≈750.9m ; Y1≈658.5m ; Y5≈532.1m
[DCF] Fair Price = 125.9 (EV 8.54b - Net Debt 2.11b = Equity 6.43b / Shares 51.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -92.70 | EPS CAGR: -20.50% | SUE: 3.23 | # QB: 1
Revenue Correlation: -57.83 | Revenue CAGR: -2.70% | SUE: 1.72 | # QB: 1
EPS current Quarter (2026-06-30): EPS=5.35 | Chg30d=+8.49% | Revisions=+45% | Analysts=8
EPS next Quarter (2026-09-30): EPS=5.05 | Chg30d=+10.07% | Revisions=+60% | Analysts=7
EPS current Year (2026-12-31): EPS=19.58 | Chg30d=+8.36% | Revisions=+67% | GrowthEPS=+37.3% | GrowthRev=+12.4%
EPS next Year (2027-12-31): EPS=20.86 | Chg30d=+9.04% | Revisions=+67% | GrowthEPS=+6.5% | GrowthRev=+0.2%
[Analyst] Revisions Ratio: +67%