Reliance Steel (RS) AI Stock Analysis

• Market Cap: $14.91B
• Dividend Yield: 1.62%
• Average Volume (3M): 433.23K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.86
• Revenue Growth: -3.91%
• EPS Growth: -30.31%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 53
• Industry: Steel
• EPS (TTM): 4.43
• Shares Outstanding: 52,593,544
• 10 Day Avg. Volume: 651,182
• 30 Day Avg. Volume: 433,227
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 14.12
• 1Y Price Target: $338.33
• Price Target Upside: 19.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $338.00 ▲(19.25%Upside)

Reliance Steel has a solid financial foundation with strong profitability and market share gains. However, the stock faces challenges with declining revenue, high valuation, and market uncertainties. These factors contribute to a moderate overall stock score, emphasizing the need for strategic growth initiatives.

Positive Factors

Diversification

Reliance's diversified product and end market mix, along with value-added processing capabilities and predominantly domestic sourcing, positions it well to deliver resilient results through economic cycles.

Financial Performance

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

Shareholder Returns

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

Negative Factors

Earnings Outlook

Reliance's 3Q'25 outlook was weaker-than-expected due to margin compression, although this is viewed as transitory.

Earnings Performance

RS reported Q4 adjusted EPS of $2.22, which was below its guidance range and consensus estimates.

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 & 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 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: Negative
• Last Price: 283.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 283.43 is below the 20-day moving average (MA) of 319.10, below the 50-day MA of 312.20, and below the 200-day MA of 294.54, indicating a bearish trend. The MACD of -6.28 indicates Positive momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 1.42 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
NUE	76 Outperform	$32.00B	25.03	6.29%	1.58%	-5.78%	-59.98%
PKX	71 Outperform	$15.10B	43.25	0.78%	2.03%	-7.63%	-63.88%
RS	71 Outperform	$14.91B	20.69	9.93%	1.62%	-3.91%	-30.31%
STLD	70 Outperform	$18.17B	17.84	11.57%	1.57%	-5.51%	-45.07%
MT	69 Neutral	$25.49B	9.41	4.72%	1.56%	-4.36%	―
X	64 Neutral	$12.42B	186.15	0.86%	0.36%	-14.79%	-88.78%
Sector *	44 Neutral	AU$1.45B	-5.92	-41.10%	4.24%	-3.35%	-41.14%

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.