Reliance Steel (RS) AI Stock Analysis

• Market Cap: $16.29B
• Dividend Yield: 1.55%
• Average Volume (3M): 315.76K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.86
• Revenue Growth: -5.60%
• EPS Growth: -35.05%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 3.77
• Shares Outstanding: 52,588,104
• 10 Day Avg. Volume: 372,930
• 30 Day Avg. Volume: 315,757
• PEG Ratio: 0.19
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.90
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 3.34
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $324.00
• Price Target Upside: 4.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: ―

Reliance Steel's overall stock score reflects a robust financial position supported by operational efficiencies and strong technical indicators. While valuation is moderate, the company's strategic achievements and positive earnings call outlook bolster the overall score.

Positive Factors

Market Position

Reliance is considered a best-in-class metals service center and processor expected to continue delivering solid and resilient performance through economic cycles.

Pricing Strategy

RS, which predominantly sources its metal from domestic mills, should benefit from higher pricing supported by Section 232 tariffs in the short term.

Shareholder Returns

Share repurchases accelerated with Reliance repurchasing approximately 2% of shares outstanding, implying RS could repurchase up to 7% of shares outstanding by estimate.

Negative Factors

Earnings Guidance

RS guided for Q1’25 EPS of $3.30-3.50, slightly below BofAe of $3.56 but still lower vs. Bloomberg / VA consensus of $3.76/ $3.78.

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.

Market Challenges

A challenged year is expected for key end markets, including construction.

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 & Aluminum Co. generates revenue primarily through the sale of metal products. The company purchases bulk quantities of metal from producers and processes them into a variety of forms and specifications as required by their customers. This includes cutting, sawing, punching, and other value-added processing services. Key revenue streams include the distribution of these processed metals to industries such as aerospace, energy, and construction. The company benefits from strategic partnerships with metal producers and suppliers, ensuring a steady supply of raw materials. Additionally, Reliance Steel leverages its extensive network of service centers to meet customer demands efficiently and effectively, contributing to its earnings.

Reliance Steel Financial Statement Overview

Summary

Reliance Steel maintains a strong financial position with solid profitability and effective leverage management. Despite facing challenges in revenue growth, the company compensates with efficient operations and robust cash flow management.

Income Statement

Reliance Steel demonstrates a strong financial performance with a solid EBIT margin of 7.61% and EBITDA margin of 9.61% in the TTM period. However, revenue has declined from previous years, indicating challenges in maintaining growth. The net profit margin is healthy at 5.65%, reflecting good cost management despite revenue pressures.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.25, indicating prudent leverage management. The equity ratio is high at 68.52%, suggesting strong financial stability. Return on Equity (ROE) stands at 10.87%, showcasing efficient use of shareholders' capital.

Cash Flow

Cash flow from operations remains strong, with an operating cash flow to net income ratio of 1.77, indicating effective cash generation. However, free cash flow growth is negative due to reduced cash reserves, impacting flexibility in capital deployment.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.67B	13.84B	14.81B	17.02B	14.09B	8.81B
	Gross Profit
3.88B	13.84B	4.30B	5.25B	4.49B	2.78B
	EBIT
1.04B	1.16B	1.74B	2.51B	1.95B	565.80M
	EBITDA
1.31B	1.45B	2.03B	2.76B	2.20B	928.70M
	Net Income Common Stockholders
772.00M	875.20M	1.34B	1.84B	1.41B	369.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
277.80M	318.10M	1.08B	1.17B	300.50M	683.50M
	Total Assets
10.37B	10.02B	10.48B	10.33B	9.54B	8.11B
	Total Debt
1.76B	1.42B	1.38B	1.87B	1.87B	1.85B
	Net Debt
1.48B	1.10B	297.10M	691.90M	1.57B	1.17B
	Total Liabilities
3.25B	2.79B	2.75B	3.23B	3.44B	2.98B
	Stockholders Equity
7.10B	7.22B	7.72B	7.09B	6.09B	5.12B
Cash Flow		Free Cash Flow
959.20M	999.20M	1.20B	1.78B	562.80M	1.00B
	Operating Cash Flow
1.37B	1.43B	1.67B	2.12B	799.40M	1.17B
	Investing Cash Flow
-713.90M	-803.70M	-483.90M	-348.50M	-652.30M	-188.40M
	Financing Cash Flow
-1.30B	-1.38B	-1.28B	-892.60M	-528.90M	-483.00M

Reliance Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 309.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 309.05 is above the 20-day moving average (MA) of 303.72, above the 50-day MA of 293.99, and above the 200-day MA of 288.62, indicating a bullish trend. The MACD of 4.19 indicates Positive momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 48.82 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
RS	78 Outperform	$16.29B	22.21	10.27%	1.55%	-5.60%	-35.05%
NUE	73 Outperform	$28.20B	21.76	6.54%	1.80%	-10.88%	-66.97%
STLD	72 Outperform	$19.61B	17.46	13.08%	1.50%	-7.42%	-48.08%
PKX	71 Outperform	$13.43B	21.96	1.64%	2.95%	-8.83%	-43.85%
MT	67 Neutral	$25.32B	18.24	2.60%	0.77%	-8.56%	68.36%
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%

Reliance Steel Corporate Events

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.

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.