Reliance Steel & Aluminum Company (RS)
NYSE:RS
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Reliance Steel
(NYSE:RS)
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Rating:77Outperform
Price Target:
$391.00
▲(20.11% Upside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by solid financial fundamentals (profitability, conservative leverage, positive and improving free cash flow) and a strong, above-trend technical setup. The latest earnings call was supportive with upbeat YoY growth and constructive guidance, while valuation is reasonable but not especially cheap; overbought momentum signals and LIFO/tariff-related margin uncertainty temper the overall rating.
Positive Factors
Conservative leverage
A low debt-to-equity (~0.28) and manageable total debt provide durable financial flexibility for a cyclical metals distributor. This supports continued buybacks/dividends, capacity investments and M&A optionality while helping absorb downturns without forcing distress sales or asset cuts.
Negative Factors
Elevated LIFO expense
Rising LIFO charges introduce persistent earnings volatility when metal costs fluctuate. Higher LIFO expense depresses reported margins and complicates fiscal comparability and forecasting, potentially reducing distributable earnings and obscuring operating performance for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
A low debt-to-equity (~0.28) and manageable total debt provide durable financial flexibility for a cyclical metals distributor. This supports continued buybacks/dividends, capacity investments and M&A optionality while helping absorb downturns without forcing distress sales or asset cuts.
Read all positive factors
Reliance Steel (RS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.37B
Dividend Yield1.63%
Average Volume (3M)304.94K
Price to Earnings (P/E)14.7
Beta (1Y)0.85
Revenue Growth8.49%
EPS Growth9.68%
CountryUS
Employees15,900
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)5.16
Shares Outstanding51,108,883
10 Day Avg. Volume254,246
30 Day Avg. Volume304,937
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)2.12
Price to Sales (P/S)1.06
P/FCF Ratio30.21
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit4.99
Enterprise Value/Ebitda14.42
Forecast
1Y Price Target
$353.00Price Target Upside8.44% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)18.78
Revenue Forecast (FY)$15.72B
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, inclu...
How the Company Makes Money
Reliance Steel & Aluminum makes money primarily by purchasing metal products from mills and other producers and reselling them to customers at a markup, with pricing generally reflecting prevailing metal market prices, product mix, availability, a...
Reliance Steel Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call featured multiple material positives: record volumes, stronger pricing, double-digit sales growth (+15% YoY), meaningful margin and earnings expansion (non-GAAP pretax income +33% YoY; EPS +37% YoY), strategic contract awards (government defense/infrastructure), a healthy balance sheet and active capital returns. Key negatives were largely transitory or technical: elevated LIFO expense (Q1 $37.5M) and tariff-driven margin distortion in aluminum, modest SG&A inflation, and pockets of end-market softness (commercial aerospace). Management raised full-year LIFO guidance due to recent metal cost moves and cautioned that pricing momentum may moderate in Q2, but overall execution, contract wins and financial returns outweigh the lower‑order challenges.Positive Updates
Revenue Growth
Sales increased 15% year-over-year in Q1 2026 driven by higher shipments and pricing.
Negative Updates
Higher-than-Expected LIFO Expense
Q1 LIFO expense was $37.5 million (above the $25 million estimate) leading management to raise full-year LIFO outlook to $150 million from $100 million; LIFO expense per share was $0.54 vs. the $0.36 assumption in prior guidance and $0.35 in the prior-year quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Sales increased 15% year-over-year in Q1 2026 driven by higher shipments and pricing.
Read all positive updates
Company Guidance
Reliance guided Q2 2026 non‑GAAP diluted EPS of $5.15–$5.35 (up ~16%–21% YoY), which includes an estimated LIFO charge of $37.5 million (about $0.54 per diluted share), and said demand and pricing should be generally in line with Q1 (subject to trade policy and geopolitical risks); the company also raised its full‑year LIFO outlook to $150 million (from $100 million) and reaffirmed full‑year capital expenditures of roughly $300 million (with a little less than half directed to strategic growth). Management cited Q1 results as supporting the outlook — Q1 non‑GAAP EPS $5.16 (nearly +37% YoY), non‑GAAP pretax income $354 million (+33% YoY) with an 8.8% pretax margin (+120 bps), sales +15% YoY, gross profit $1.2 billion (+23% QoQ, +13% YoY) and FIFO gross margin of 30.1% (vs. 28.5% in Q4); operational metrics included record tons sold (+9.4% QoQ, +2.7% YoY and ~8 pp outperformance vs. industry), ASP/ton +5.3% QoQ, inventory turns ~5x, AR DSO 42 days, Q1 operating cash flow ≈ $151 million, Q1 capex $64 million, dividends paid $67 million, $234 million of share repurchases (avg $299) with ~$529 million remaining, total debt $1.7 billion and net debt/EBITDA ≈ 1.Reliance Steel Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.84B | 14.29B | 13.84B | 14.81B | 17.02B | 14.09B |
| Gross Profit | 4.04B | 3.83B | 3.84B | 4.30B | 5.01B | 4.26B |
| EBITDA | 1.40B | 1.30B | 1.45B | 2.03B | 2.73B | 2.26B |
| Net Income | 806.00M | 739.40M | 875.20M | 1.34B | 1.84B | 1.41B |
Balance Sheet | ||||||
| Total Assets | 10.81B | 10.37B | 10.02B | 10.48B | 10.33B | 9.54B |
| Cash, Cash Equivalents and Short-Term Investments | 249.70M | 216.60M | 318.10M | 1.08B | 1.17B | 300.50M |
| Total Debt | 2.03B | 1.99B | 1.42B | 1.38B | 1.87B | 1.87B |
| Total Liabilities | 3.68B | 3.19B | 2.79B | 2.75B | 3.23B | 3.44B |
| Stockholders Equity | 7.12B | 7.17B | 7.22B | 7.72B | 7.09B | 6.09B |
Cash Flow | ||||||
| Free Cash Flow | 612.10M | 502.50M | 999.20M | 1.20B | 1.78B | 562.80M |
| Operating Cash Flow | 918.30M | 831.40M | 1.43B | 1.67B | 2.12B | 799.40M |
| Investing Cash Flow | -304.20M | -321.80M | -803.70M | -483.90M | -348.50M | -652.30M |
| Financing Cash Flow | -648.20M | -620.20M | -1.38B | -1.28B | -892.60M | -528.90M |
Reliance Steel Technical Analysis
Positive
325.54
Price Trends
315.86
Positive
308.65
Positive
298.34
Positive
Market Momentum
4.20
Negative
66.06
Neutral
74.98
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 325.54 is above the 20-day moving average (MA) of 309.38, above the 50-day MA of 315.86, and above the 200-day MA of 298.34, indicating a bullish trend. The MACD of 4.20 indicates Negative momentum. The RSI at 66.06 is Neutral, neither overbought nor oversold. The STOCH value of 74.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RS.
Reliance Steel Risk Analysis
Reliance Steel disclosed 25 risk factors in its most recent earnings report. Reliance Steel reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reliance Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.37B | 14.73 | 11.18% | 1.63% | 8.49% | 9.68% | |
69 Neutral | $32.36B | 16.15 | 15.25% | 1.11% | 10.44% | 23.34% | |
66 Neutral | $50.65B | 13.28 | 8.49% | 1.34% | 5.73% | -10.36% | |
65 Neutral | $42.52B | 11.03 | 5.87% | 1.03% | -1.31% | 149.74% | |
65 Neutral | $8.39B | 17.63 | 3.53% | 7.02% | -11.93% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | $23.33B | 37.71 | 1.19% | 3.22% | -8.83% | -42.44% |
* Basic Materials Sector Average
RS
Reliance Steel
359.45
73.96
25.91%
MT
ArcelorMittal
55.92
26.67
91.19%
NUE
Nucor
222.39
104.46
88.58%
PKX
POSCO
76.41
31.14
68.79%
STLD
Steel Dynamics
224.37
95.82
74.53%
TX
Ternium SA
42.76
16.04
60.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.