Reliance Steel (RS) AI Stock Analysis

• Market Cap: $15.29B
• Dividend Yield: 1.62%
• Average Volume (3M): 295.14K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.83
• Revenue Growth: -3.91%
• EPS Growth: -30.31%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 4.43
• Shares Outstanding: 52,593,544
• 10 Day Avg. Volume: 238,884
• 30 Day Avg. Volume: 295,136
• 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: 1.18
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: 14.11
• 1Y Price Target: $331.83
• Price Target Upside: 14.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $330.00 ▲(13.51% Upside)

Reliance Steel's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust profitability and strategic market share gains. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate pricing. Challenges in the semiconductor industry and aluminum pricing concerns also weigh on the outlook.

Positive Factors

Market Share Gains

Reliance Steel's ability to increase shipments while the industry faces a decline demonstrates its competitive advantage and strong market position, which supports long-term growth prospects.

Strong Financial Performance

The company's strong financial performance, with significant increases in income and earnings per share, indicates robust profitability and effective management, supporting sustainable growth.

Nonresidential Construction Strength

Increased demand in nonresidential construction sectors provides a stable revenue stream for Reliance Steel, aligning with long-term infrastructure trends and diversification of its customer base.

Negative Factors

Revenue Decline

A decline in revenue growth can hinder Reliance Steel's ability to maintain its market position and invest in future growth, posing a challenge to long-term sustainability.

Pressure on Gross Profit Margin

Pressure on gross profit margins can impact profitability and limit the company's ability to reinvest in its operations, affecting long-term financial health.

Challenges in the Semiconductor Industry

Continued challenges in the semiconductor industry may affect Reliance Steel's revenue from this sector, impacting its diversification strategy and long-term growth potential.

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 maintains a solid financial position with strong profitability and efficient operations. The balance sheet reflects financial stability, while cash flows are healthy but show a slight decline. The company should focus on reversing the revenue decline to sustain growth momentum.

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	3.74B	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	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: 290.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 290.72 is below the 20-day moving average (MA) of 292.15, below the 50-day MA of 301.92, and below the 200-day MA of 292.38, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 39.03 is Neutral, 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
RS	75 Outperform	$15.29B	21.23	9.93%	1.62%	-3.91%	-30.31%
NUE	75 Outperform	$32.44B	25.52	6.28%	1.55%	-5.78%	-60.07%
STLD	74 Outperform	$19.23B	19.06	11.57%	1.47%	-5.51%	-45.07%
TX	70 Neutral	$6.80B	11.62	4.89%	7.80%	-16.83%	―
PKX	64 Neutral	$15.50B	41.41	0.92%	2.41%	-7.63%	-63.14%
MT	63 Neutral	$28.51B	10.56	4.72%	1.39%	-4.51%	―
Sector *	61 Neutral	$10.43B	7.39	-0.05%	2.88%	2.86%	-36.73%

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.

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.