Reliance, Inc. (RS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nucor Corp.

Commercial Metals Co.

Steel Dynamics, Inc.

Reliance, Inc.

Worthington Enterprises, Inc.

Cleveland-Cliffs, Inc.

Metallus, Inc.

Radius Recycling, Inc.

United States Steel Corp.

Ryerson Holding Corp.

Mesabi Trust

Why is Reliance, Inc. ?

High Management Efficiency with a high ROE of 17.39%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.51 times

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 1,230.7 MM
NET PROFIT(HY) At USD 433.4 MM has Grown at -24.06%
ROCE(HY) Lowest at 9.93%

With ROE of 11.08%, it has a fair valuation with a 2.29 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.95%, its profits have fallen by -37.5%

Below par performance in long term as well as near term

Along with generating -4.95% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Reliance, Inc. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Reliance, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reliance, Inc.

3.49%

0.09

26.71%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.16%

EBIT Growth (5y)

7.16%

EBIT to Interest (avg)

31.46

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.62

Tax Ratio

23.00%

Dividend Payout Ratio

34.33%

Pledged Shares

Institutional Holding

84.67%

ROCE (avg)

21.15%

ROE (avg)

17.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.15

EV to EBIT

16.31

EV to EBITDA

12.82

EV to Capital Employed

1.98

EV to Sales

1.17

PEG Ratio

Dividend Yield

1.84%

ROCE (Latest)

12.11%

ROE (Latest)

10.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 9.61

DEBTORS TURNOVER RATIO(HY)

Highest at 9.61 times

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 831.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 21.24 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,583.87

PRE-TAX PROFIT(Q)

At USD 164.7 MM has Fallen at -31.27%

NET PROFIT(Q)

At USD 123.98 MM has Fallen at -32.69%

CASH AND EQV(HY)

Lowest at USD 477.8 MM

INTEREST(Q)

Highest at USD 15.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.02 %

Here's what is working for Reliance, Inc.

Dividend per share

Highest at USD 9.61 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debtors Turnover Ratio

Highest at 9.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Reliance, Inc.

Operating Cash Flow

Lowest at USD 831.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 1,583.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 164.7 MM has Fallen at -31.27%

over average net sales of the previous four periods of USD 239.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 123.98 MM has Fallen at -32.69%

over average net sales of the previous four periods of USD 184.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 21.24 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 15.5 MM

in the last five periods and Increased by 7.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 7.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at USD 477.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents