Reliance Steel (RS) AI Stock Analysis

• Market Cap: $16.87B
• Dividend Yield: 1.63%
• Average Volume (3M): 284.84K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.81
• Revenue Growth: -0.88%
• EPS Growth: -25.15%
• Country: US
• Employees: 15,900
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.64
• Shares Outstanding: 52,286,964
• 10 Day Avg. Volume: 277,857
• 30 Day Avg. Volume: 284,836
• 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: 0.96
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 12.74
• 1Y Price Target: $314.50
• Price Target Upside: -2.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 17.68
• Revenue Forecast (FY): $14.88B

• Rating: 74 Outperform
• Price Target: $361.00 ▲(11.41% Upside)

Reliance Steel's overall stock score reflects a stable financial position with strong market share gains and effective cash flow management. While the company faces challenges in profitability and cash flow growth, its robust balance sheet and strategic initiatives provide a solid foundation. The valuation is fair, and recent corporate governance enhancements are positive.

Positive Factors

Market Share Gains

Significant market share gains indicate strong competitive positioning and successful growth strategies, enhancing long-term revenue potential.

Strong Operating Cash Flow

Robust cash flow generation supports strategic investments and financial flexibility, ensuring sustained operational and growth capabilities.

Board Expansion

Expanding the board with experienced leadership enhances strategic oversight and supports long-term growth and market positioning.

Negative Factors

Gross Profit Margin Pressure

Pressure on profit margins can impact profitability and cash flow, challenging the company's ability to maintain past financial performance.

Challenges in Specialty Products

Struggles in high-value markets may limit revenue growth and profitability, affecting long-term strategic positioning in these sectors.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can constrain investment capacity and shareholder returns, impacting long-term financial health.

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 primarily through the sale of metal products and related processing services. The company's revenue model is based on a combination of direct sales and value-added services, such as cutting, shearing, and welding, which enhance the utility of the raw materials for clients. Key revenue streams include sales from its extensive inventory of metals and alloys, as well as fees from processing services. Reliance Steel benefits from strategic partnerships with suppliers and manufacturers, allowing it to maintain a competitive edge in pricing and product availability. Additionally, the company capitalizes on market demand in various sectors, which can fluctuate based on economic conditions, thereby influencing its overall earnings.

Reliance Steel Financial Statement Overview

Summary

Reliance Steel demonstrates a stable financial position with a strong balance sheet and adequate cash flow generation. However, challenges in maintaining profit margins and cash flow growth are evident. The income statement reflects a slight decline in profitability, while the balance sheet remains robust with low leverage.

Income Statement

Reliance Steel's income statement shows a stable gross profit margin of around 27% in the TTM, slightly down from previous years. The net profit margin has decreased to 5.23% in the TTM from 6.33% in 2024, indicating a slight decline in profitability. Revenue growth is modest at 1.69% in the TTM, recovering from a decline in 2024. EBIT and EBITDA margins have also decreased, reflecting tighter operational efficiency. Overall, the company maintains a solid revenue base but faces challenges in maintaining previous profit levels.

Balance Sheet

The balance sheet of Reliance Steel is strong, with a low debt-to-equity ratio of 0.23 in the TTM, indicating conservative leverage. The return on equity has decreased to 10.09% in the TTM from 12.12% in 2024, reflecting reduced profitability. The equity ratio remains healthy, suggesting a stable financial structure. The company has managed its debt well, maintaining a solid equity base, which provides financial stability.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 20.48% in the TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is slightly above 1, showing adequate cash generation relative to net income. The free cash flow to net income ratio is 0.64, suggesting some pressure on free cash flow. While cash flow generation is adequate, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.92B	13.84B	14.81B	17.02B	14.09B	8.81B
Gross Profit	3.83B	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	728.20M	875.20M	1.34B	1.84B	1.41B	369.10M
Balance Sheet
Total Assets	10.55B	10.02B	10.48B	10.33B	9.54B	8.11B
Cash, Cash Equivalents and Short-Term Investments	261.20M	318.10M	1.08B	1.17B	300.50M	683.50M
Total Debt	1.69B	1.42B	1.38B	1.87B	1.87B	1.85B
Total Liabilities	3.23B	2.79B	2.75B	3.23B	3.44B	2.98B
Stockholders Equity	7.31B	7.22B	7.72B	7.09B	6.09B	5.12B
Cash Flow
Free Cash Flow	662.00M	999.20M	1.20B	1.78B	562.80M	1.00B
Operating Cash Flow	1.03B	1.43B	1.67B	2.12B	799.40M	1.17B
Investing Cash Flow	-363.00M	-803.70M	-483.90M	-348.50M	-652.30M	-188.40M
Financing Cash Flow	-714.90M	-1.38B	-1.28B	-892.60M	-528.90M	-483.00M

Reliance Steel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 324.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 324.03 is above the 20-day moving average (MA) of 301.84, above the 50-day MA of 288.11, and above the 200-day MA of 291.11, indicating a bullish trend. The MACD of 8.58 indicates Negative momentum. The RSI at 80.75 is Negative, neither overbought nor oversold. The STOCH value of 91.43 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	74 Outperform	$39.43B	24.21	7.98%	1.34%	1.66%	-31.25%
STLD	74 Outperform	$24.94B	22.66	12.47%	1.11%	-1.49%	-31.82%
RS	74 Outperform	$16.87B	23.59	9.94%	1.63%	-0.88%	-25.15%
MT	71 Outperform	$36.37B	14.72	4.72%	1.03%	-4.51%	―
TX	68 Neutral	$8.23B	14.33	4.80%	7.02%	-16.69%	585.38%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PKX	61 Neutral	$18.05B	55.93	0.78%	3.22%	-8.97%	-67.03%

Reliance Steel Corporate Events

Reliance Steel Approves Executive Severance Policy

On October 21, 2025, Reliance Steel‘s board approved an Executive Severance Policy for officers and key employees, providing severance benefits in case of termination without cause. The policy includes cash payments based on salary and bonuses, and COBRA premium coverage, with a repayment clause if misconduct is found within 24 months. Reliance Steel reported its third-quarter 2025 financial results with net sales of $3.65 billion, a gross profit margin of 28.3%, and an EPS of $3.59. Despite a slight decrease in net sales compared to the previous quarter, the company achieved a 6.2% year-over-year increase in tons sold and repurchased $60.9 million in common stock.

The most recent analyst rating on (RS) stock is a Buy with a $345.00 price target. To see the full list of analyst forecasts on Reliance Steel stock, see the RS Stock Forecast page.