Reliance Steel (RS) AI Stock Analysis

• Market Cap: $17.27B
• Dividend Yield: 1.46%
• Average Volume (3M): 372.22K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.86
• Revenue Growth: -5.60%
• EPS Growth: -35.05%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Steel
• EPS (TTM): 3.77
• Shares Outstanding: 52,588,104
• 10 Day Avg. Volume: 267,561
• 30 Day Avg. Volume: 372,222
• 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: 0.75
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 3.34
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $335.00
• Price Target Upside: 1.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $362.00 ▲(10.20%Upside)

Reliance Steel's solid financial performance and positive earnings call developments are the primary drivers of its score. Technical indicators suggest caution due to overbought conditions, and valuation metrics indicate potential overvaluation. Continued focus on strategic acquisitions and maintaining operational efficiency will be crucial for future performance.

Positive Factors

Financial Health

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

Market Position

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.

Shareholder Value

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 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.

Future 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.

Reliance Steel Business Overview & Revenue Model

Company Description

Reliance Steel & Aluminum Co. (RS) is a leading metals service center company headquartered in Los Angeles, California. It operates in various sectors including aerospace, energy, manufacturing, and construction. The company specializes in the distribution and processing of a vast array of metal products, including carbon steel, stainless steel, aluminum, and alloy steels, serving a diverse customer base across the globe.

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
EBITDA	1.31B	1.45B	2.03B	2.76B	2.20B	928.70M
Net Income	772.00M	875.20M	1.34B	1.84B	1.41B	369.10M
Balance Sheet
Total Assets	10.37B	10.02B	10.48B	10.33B	9.54B	8.11B
Cash, Cash Equivalents and Short-Term Investments	277.80M	318.10M	1.08B	1.17B	300.50M	683.50M
Total Debt	1.76B	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	7.10B	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: 328.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 328.48 is above the 20-day moving average (MA) of 316.94, above the 50-day MA of 306.46, and above the 200-day MA of 292.08, indicating a bullish trend. The MACD of 7.08 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 86.45 is Negative, 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	79 Outperform	$32.86B	25.36	6.54%	1.54%	-10.88%	-66.97%
STLD	75 Outperform	$20.39B	18.16	13.08%	1.48%	-7.42%	-48.08%
RS	72 Outperform	$17.27B	23.55	10.27%	1.46%	-5.60%	-35.05%
PKX	71 Outperform	$16.81B	27.43	1.64%	2.46%	-8.83%	-43.85%
MT	69 Neutral	$28.29B	20.28	2.60%	0.68%	-8.56%	68.36%
Sector *	44 Neutral	AU$1.43B	-6.04	-40.74%	3.91%	-3.45%	-41.77%

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.