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Reliance Steel
(NYSE:RS)
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Rating:75Outperform
Price Target:
$465.00
▲(42.84% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by solid financials (profitability, conservative leverage, and positive/improving free cash flow) and a strong earnings update with upbeat Q2 guidance and record volumes. Technicals are supportive with an above-trend price structure, while valuation is reasonable but not especially cheap; near-term risks include elevated LIFO expense, tariff-related margin impacts, and potential pricing normalization.
Positive Factors
Large government contract awards
Multi-year government contracts (~$3.0B potential, DHS Phase 1 $1.4B to mid-2027) provide durable revenue visibility and utilization. Such awards underpin steady workstreams, support capacity planning and lower top-line volatility versus spot commodity sales, enhancing long-term earnings stability.
Negative Factors
Margin normalization from cycle peak
Profitability has meaningfully normalized from the 2022–2023 peak, with net margins roughly halved. As a metals service business exposed to commodity cycles, structural margin compression when pricing normalizes reduces long-term return expectations and increases sensitivity to weaker end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Large government contract awards
Multi-year government contracts (~$3.0B potential, DHS Phase 1 $1.4B to mid-2027) provide durable revenue visibility and utilization. Such awards underpin steady workstreams, support capacity planning and lower top-line volatility versus spot commodity sales, enhancing long-term earnings stability.
Read all positive factors
Reliance Steel Key Performance Indicators (KPIs)
Reliance Steel (RS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.99B
Dividend Yield1.63%
Average Volume (3M)347.76K
Price to Earnings (P/E)24.1
Beta (1Y)0.83
Revenue Growth8.49%
EPS Growth9.68%
CountryUS
Employees15,900
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)15.42
Shares Outstanding51,048,523
10 Day Avg. Volume420,461
30 Day Avg. Volume347,759
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 Cap1.18
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit5.55
Enterprise Value/Ebitda16.07
Forecast
1Y Price Target
$381.57Price Target Upside17.21% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)19.98
Revenue Forecast (FY)$16.16B
Reliance Steel Business Overview & Revenue Model
Company Description
Reliance Steel & Aluminum Co. (RS) operates as a premier diversified metal solutions provider and a leading metal service center, serving clients across the United States, Canada, and globally. The company provides an extensive inventory of approx...
How the Company Makes Money
Reliance makes money primarily by purchasing metals from domestic and international mills and other suppliers, holding inventory across its service-center network, and reselling those products to customers at a markup. Revenue is generated from (1...
Reliance Steel Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 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 | 1.39B | 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
Neutral
325.54
Price Trends
378.21
Negative
346.28
Positive
317.60
Positive
Market Momentum
-0.23
Positive
40.82
Neutral
8.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RS, the sentiment is Neutral. The current price of 325.54 is below the 20-day moving average (MA) of 395.49, below the 50-day MA of 378.21, and above the 200-day MA of 317.60, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.99B | 24.13 | 11.18% | 1.63% | 8.49% | 9.68% | |
70 Outperform | $36.04B | 26.38 | 15.25% | 1.11% | 10.44% | 23.34% | |
69 Neutral | $8.20B | 14.30 | 4.74% | 7.02% | -7.33% | ― | |
67 Neutral | $55.53B | 23.94 | 11.16% | 1.34% | 12.27% | 79.72% | |
63 Neutral | $47.10B | 16.46 | 5.35% | 1.03% | -1.31% | 149.74% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
41 Neutral | $15.35B | 29.19 | 1.48% | 3.22% | -5.70% | -6.30% |
* Basic Materials Sector Average
RS
Reliance Steel
372.01
50.27
15.63%
MT
ArcelorMittal
63.40
31.08
96.16%
NUE
Nucor
220.75
84.70
62.26%
PKX
POSCO
52.12
-4.88
-8.56%
STLD
Steel Dynamics
220.39
88.73
67.39%
TX
Ternium SA
41.75
11.36
37.38%
Reliance Steel Corporate Events
Executive/Board ChangesShareholder Meetings
Reliance Steel Shareholders Back Board, Pay and Auditor
Positive
May 21, 2026
At its Annual Meeting of Stockholders held on May 20, 2026, Reliance, Inc. shareholders re-elected all nominees to the board of directors, ensuring continuity in the company’s leadership and governance structure. Investors also approved, on ...
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.