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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nucor Corp.

Steel Dynamics, Inc.

Commercial Metals Co.

Metallus, Inc.

Mesabi Trust

Reliance, Inc.

Worthington Enterprises, Inc.

Radius Recycling, Inc.

Cleveland-Cliffs, Inc.

Ryerson Holding Corp.

United States Steel Corp.

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 -7.31%, its profits have fallen by -37.5%

Below par performance in long term as well as near term

Along with generating -7.31% 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.

-7.31%

0.05

26.58%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.08%

EBIT Growth (5y)

4.13%

EBIT to Interest (avg)

31.46

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

1.67

Tax Ratio

23.00%

Dividend Payout Ratio

28.03%

Pledged Shares

Institutional Holding

86.05%

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

2.29

EV to EBIT

16.60

EV to EBITDA

13.19

EV to Capital Employed

2.10

EV to Sales

1.28

PEG Ratio

Dividend Yield

1.65%

ROCE (Latest)

12.64%

ROE (Latest)

11.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 8.22

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.18%

RAW MATERIAL COST(Y)

Fallen by 0.59% (YoY

NET SALES(Q)

Highest at USD 3,659.8 MM

-18What is not working for the Company

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%

DEBT-EQUITY RATIO (HY)

Highest at 20.64 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.38 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.22 times

INTEREST(Q)

Highest at USD 14.3 MM

Here's what is working for Reliance, Inc.

Dividend per share

Highest at USD 8.22 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 3,659.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 27.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 1,230.7 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

At USD 14.3 MM has Grown at 24.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 433.4 MM has Grown at -24.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Interest

Highest at USD 14.3 MM

in the last five periods and Increased by 24.35% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 20.64 %

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

Inventory Turnover Ratio

Lowest at 4.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 8.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio