Reliance Steel (RS) AI Stock Analysis

• Market Cap: $15.03B
• Dividend Yield: 1.6%
• Average Volume (3M): 430.38K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.86
• Revenue Growth: -3.91%
• EPS Growth: -30.31%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Steel
• EPS (TTM): 4.43
• Shares Outstanding: 52,593,544
• 10 Day Avg. Volume: 322,845
• 30 Day Avg. Volume: 430,377
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 14.12
• 1Y Price Target: $327.75
• Price Target Upside: 11.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $330.00 ▲(12.04% Upside)

Reliance Steel's overall stock score reflects its strong financial performance and strategic initiatives, such as the new term loan agreement. While the earnings call was positive, technical indicators suggest caution, and valuation metrics are moderate. Addressing revenue decline and market challenges will be key for future performance.

Positive Factors

Financial Performance

Reliance's diversified product and end market mix, value-added processing capabilities, and predominantly domestic sourcing position it well to deliver resilient results through-cycle.

Market Position

Reliance is considered a best-in-class metals service center and processor expected to deliver solid and resilient through-cycle performance.

Shareholder Returns

Reliance's healthy balance sheet and free cash flow generation should continue to support a balanced capital allocation, investing in growth and shareholder returns.

Negative Factors

Earnings Outlook

The 3Q'25 outlook was weaker-than-expected on margin compression, although this is viewed as transitory.

Earnings Performance

RS reported Q4 adjusted EPS of $2.22, below its $2.65-2.85 guide, and Bloomberg / VA consensus at $2.74 and BofAe at $2.72.

Tariff Impact

Reliance is not immune from the uncertainty caused by the fluid tariff situation.

Reliance Steel Business Overview & Revenue Model

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.

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 exhibits strong profitability with solid margins and financial stability, as indicated by a robust balance sheet and effective cash flow generation. However, the revenue decline is a concern that needs to be addressed to sustain growth.

Income Statement

Reliance Steel's income statement shows robust gross and net profit margins, indicating strong profitability. However, the TTM revenue has decreased compared to the previous year, showing a negative revenue growth rate. The EBIT and EBITDA margins are also solid, reflecting efficient operations despite the revenue decline.

Balance Sheet

The balance sheet of Reliance Steel is well-positioned with a healthy equity ratio and a low debt-to-equity ratio, signifying financial stability. The return on equity is strong, indicating effective use of equity to generate profits. The company's leverage is manageable, enhancing its financial resilience.

Cash Flow

The cash flow statement demonstrates a strong operating cash flow to net income ratio, indicating effective cash generation from operations. The free cash flow remains positive, although it has decreased from the previous period. Overall, the cash flow position supports operational needs and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.69B	13.84B	14.81B	17.02B	14.09B	8.81B
Gross Profit	3.88B	13.84B	4.30B	5.25B	4.49B	2.78B
EBITDA	1.28B	1.45B	2.03B	2.76B	2.20B	928.70M
Net Income	737.90M	875.20M	1.34B	1.84B	1.41B	369.10M
Balance Sheet
Total Assets	10.49B	10.02B	10.48B	10.33B	9.54B	8.11B
Cash, Cash Equivalents and Short-Term Investments	239.50M	318.10M	1.08B	1.17B	300.50M	683.50M
Total Debt	1.73B	1.42B	1.38B	1.87B	1.87B	1.85B
Total Liabilities	3.25B	2.79B	2.75B	3.23B	3.44B	2.98B
Stockholders Equity	7.23B	7.22B	7.72B	7.09B	6.09B	5.12B
Cash Flow
Free Cash Flow	832.50M	999.20M	1.20B	1.78B	562.80M	1.00B
Operating Cash Flow	1.23B	1.43B	1.67B	2.12B	799.40M	1.17B
Investing Cash Flow	-400.50M	-803.70M	-483.90M	-348.50M	-652.30M	-188.40M
Financing Cash Flow	-944.30M	-1.38B	-1.28B	-892.60M	-528.90M	-483.00M

Reliance Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RS, the sentiment is Positive. The current price of 294.54 is above the 20-day moving average (MA) of 287.87, below the 50-day MA of 306.59, and above the 200-day MA of 293.30, indicating a neutral trend. The MACD of -5.61 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RS.

Reliance Steel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUE	75 Outperform	$33.49B	26.34	6.28%	1.48%	-5.78%	-60.07%
RS	74 Outperform	$15.03B	20.87	9.93%	1.60%	-3.91%	-30.31%
STLD	74 Outperform	$18.51B	18.35	11.57%	1.45%	-5.51%	-45.07%
PKX	71 Outperform	$16.52B	44.37	0.92%	2.40%	-7.63%	-63.14%
MT	69 Neutral	$27.48B	10.10	4.72%	1.42%	-4.36%	―
X	64 Neutral		―		―	-14.79%	-88.78%
Sector *	56 Neutral	£2.51B	5.81	-0.10%	45.93%	10.53%	3.40%

Reliance Steel Corporate Events

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.

Reliance Steel Holds Annual Stockholders Meeting

On May 21, 2025, Reliance, Inc. held its Annual Meeting of Stockholders via webcast, with 89.59% of total shares represented. During the meeting, all nominees for the Board of Directors were elected, the compensation of named executive officers was approved, and KPMG LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year.