Reliance Steel (RS) AI Stock Analysis

• Market Cap: $14.13B
• Dividend Yield: 1.72%
• Average Volume (3M): 347.39K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.85
• Revenue Growth: -0.88%
• EPS Growth: -25.15%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.64
• Shares Outstanding: 52,286,964
• 10 Day Avg. Volume: 300,162
• 30 Day Avg. Volume: 347,387
• PEG Ratio: -0.55
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 15.02
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 12.74
• 1Y Price Target: $318.50
• Price Target Upside: 17.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 14.79
• Revenue Forecast (FY): $14.21B

• Rating: 73 Outperform
• Price Target: $309.00 ▲(14.36% Upside)

Reliance Steel's overall stock score reflects a stable financial position and strong market share gains, as highlighted in the earnings call. However, technical indicators suggest a bearish trend, and valuation metrics indicate limited upside potential. The company's ability to manage cash flow effectively amidst market challenges is a positive factor.

Positive Factors

Market Share Gains

The significant increase in market share demonstrates Reliance Steel's effective growth strategy and competitive positioning, enhancing its long-term market influence and revenue potential.

Strong Operating Cash Flow

Strong cash flow generation allows Reliance Steel to reinvest in high-value initiatives, supporting sustainable growth and financial stability over the long term.

Non-Residential Construction Growth

Growth in non-residential construction and general manufacturing sectors indicates robust demand, supporting Reliance Steel's revenue and market expansion.

Negative Factors

Gross Profit Margin Pressure

Persistent margin pressure from trade policy and inventory challenges could impact profitability, affecting long-term financial performance.

Challenges in Specialty Products

Struggles in high-value specialty products can limit growth in key sectors, potentially affecting Reliance Steel's competitive edge and revenue diversification.

LIFO Expense Impact

The LIFO expense impact reduces profitability, highlighting potential volatility in earnings and the need for strategic inventory management.

Reliance Steel Business Overview & Revenue Model

Company Description

Reliance Steel & Aluminum Co. is one of the largest metal service center companies in North America, providing a broad range of metal products and processing services. Founded in 1939 and headquartered in Los Angeles, California, the company operates through a network of more than 300 locations across the United States and internationally. Reliance specializes in the distribution and processing of metals, including steel, aluminum, copper, and various specialty metals, serving diverse sectors such as construction, aerospace, automotive, and energy.

How the Company Makes Money

Reliance Steel generates revenue through the sale of metal products and value-added processing services. The company's key revenue streams include the distribution of various metals, which accounts for the bulk of its sales, and processing services such as cutting, machining, and finishing that enhance the value of the raw materials. Additionally, Reliance benefits from strategic acquisitions of smaller metal service centers, expanding its market reach and product offerings. The company's strong relationships with suppliers and a diversified customer base across multiple industries contribute significantly to its earnings stability. Economic trends and demand fluctuations in the construction and manufacturing sectors also play a critical role in influencing the company’s revenue.

Reliance Steel Financial Statement Overview

Summary

Reliance Steel demonstrates a stable financial position with a strong balance sheet and adequate cash flow generation. However, challenges in maintaining profit margins and cash flow growth are evident. The income statement reflects a slight decline in profitability, while the balance sheet remains robust with low leverage.

Income Statement

Reliance Steel's income statement shows a stable gross profit margin of around 27% in the TTM, slightly down from previous years. The net profit margin has decreased to 5.23% in the TTM from 6.33% in 2024, indicating a slight decline in profitability. Revenue growth is modest at 1.69% in the TTM, recovering from a decline in 2024. EBIT and EBITDA margins have also decreased, reflecting tighter operational efficiency. Overall, the company maintains a solid revenue base but faces challenges in maintaining previous profit levels.

Balance Sheet

The balance sheet of Reliance Steel is strong, with a low debt-to-equity ratio of 0.23 in the TTM, indicating conservative leverage. The return on equity has decreased to 10.09% in the TTM from 12.12% in 2024, reflecting reduced profitability. The equity ratio remains healthy, suggesting a stable financial structure. The company has managed its debt well, maintaining a solid equity base, which provides financial stability.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 20.48% in the TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is slightly above 1, showing adequate cash generation relative to net income. The free cash flow to net income ratio is 0.64, suggesting some pressure on free cash flow. While cash flow generation is adequate, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.92B	13.84B	14.81B	17.02B	14.09B	8.81B
Gross Profit	3.83B	3.84B	4.30B	5.01B	4.26B	2.59B
EBITDA	1.28B	1.45B	2.03B	2.73B	2.26B	847.80M
Net Income	728.20M	875.20M	1.34B	1.84B	1.41B	369.10M
Balance Sheet
Total Assets	10.55B	10.02B	10.48B	10.33B	9.54B	8.11B
Cash, Cash Equivalents and Short-Term Investments	261.20M	318.10M	1.08B	1.17B	300.50M	683.50M
Total Debt	1.69B	1.42B	1.38B	1.87B	1.87B	1.85B
Total Liabilities	3.23B	2.79B	2.75B	3.23B	3.44B	2.98B
Stockholders Equity	7.31B	7.22B	7.72B	7.09B	6.09B	5.12B
Cash Flow
Free Cash Flow	662.00M	999.20M	1.20B	1.78B	562.80M	1.00B
Operating Cash Flow	1.03B	1.43B	1.67B	2.12B	799.40M	1.17B
Investing Cash Flow	-363.00M	-803.70M	-483.90M	-348.50M	-652.30M	-188.40M
Financing Cash Flow	-714.90M	-1.38B	-1.28B	-892.60M	-528.90M	-483.00M

Reliance Steel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 270.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RS, the sentiment is Negative. The current price of 270.21 is below the 20-day moving average (MA) of 275.97, below the 50-day MA of 280.07, and below the 200-day MA of 290.84, indicating a bearish trend. The MACD of -2.67 indicates Positive momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 14.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RS.

Reliance Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STLD	77 Outperform	$22.70B	20.62	12.47%	1.29%	-1.49%	-31.82%
NUE	74 Outperform	$33.82B	20.77	7.98%	1.49%	1.66%	-31.25%
RS	73 Outperform	$14.13B	19.76	9.94%	1.72%	-0.88%	-25.15%
TX	73 Outperform	$7.13B	12.42	4.80%	7.48%	-16.69%	585.38%
MT	71 Outperform	$30.80B	11.38	4.72%	1.18%	-4.51%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PKX	60 Neutral	$16.31B	50.65	0.78%	2.48%	-8.97%	-67.03%

Reliance Steel Corporate Events

Reliance Steel & Aluminum’s Strategic Gains Amid Market Challenges

Reliance Steel & Aluminum’s recent earnings call painted a picture of resilience and strategic growth amidst challenging market conditions. The company demonstrated strong market share gains and effective cash flow management, even as it faced pricing pressures and excess inventories in certain segments. While the positive aspects of market share and operational performance were highlighted, the call also acknowledged the negative pressures on gross margins and specific market challenges.

Reliance Steel & Aluminum Reports Strong Q3 2025 Results

Reliance Steel & Aluminum Co., a leading global metal solutions provider, operates as the largest metals service center company in North America, offering a diverse range of metal products and value-added processing services.

Reliance Steel Approves Executive Severance Policy

On October 21, 2025, Reliance Steel‘s board approved an Executive Severance Policy for officers and key employees, providing severance benefits in case of termination without cause. The policy includes cash payments based on salary and bonuses, and COBRA premium coverage, with a repayment clause if misconduct is found within 24 months. Reliance Steel reported its third-quarter 2025 financial results with net sales of $3.65 billion, a gross profit margin of 28.3%, and an EPS of $3.59. Despite a slight decrease in net sales compared to the previous quarter, the company achieved a 6.2% year-over-year increase in tons sold and repurchased $60.9 million in common stock.

The most recent analyst rating on (RS) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on Reliance Steel stock, see the RS Stock Forecast page.

Reliance Steel Expands Board with New Appointment

On October 1, 2025, Reliance, Inc. expanded its Board of Directors from eight to nine members by appointing John G. Sznewajs as an independent director. Mr. Sznewajs, with a strong background in finance and corporate strategy, brings valuable expertise to the board, enhancing Reliance’s strategic capabilities. His appointment is expected to bolster the company’s leadership and support its continued growth and market positioning.

The most recent analyst rating on (RS) stock is a Hold with a $330.00 price target. To see the full list of analyst forecasts on Reliance Steel stock, see the RS Stock Forecast page.

Reliance Steel Secures New Term Loan Agreement

On August 14, 2025, Reliance, Inc. entered into a Term Loan Agreement with several financial institutions, including Bank of America, Wells Fargo, PNC Bank, and U.S. Bank, with JPMorgan Chase as the documentation agent. This agreement signifies a strategic financial move for Reliance, potentially impacting its financial stability and operational capabilities.

The most recent analyst rating on (RS) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Reliance Steel stock, see the RS Stock Forecast page.