Russel Metals, Inc. (RUS) 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

Wajax Corp.

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Russel Metals, Inc.

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Tidewater Midstream And Infrastructure Ltd.

First Hydrogen Corp.

Why is Russel Metals, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.55%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.21

With ROE of 10.30%, it has a very attractive valuation with a 1.47 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 -1.24%, its profits have fallen by -20.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Russel Metals, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Russel Metals, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Russel Metals, Inc.

-100.0%

5.90

24.05%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.54%

EBIT Growth (5y)

20.98%

EBIT to Interest (avg)

13.21

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

2.34

Tax Ratio

24.81%

Dividend Payout Ratio

57.22%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

23.98%

ROE (avg)

18.55%

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

1.65

EV to EBIT

11.84

EV to EBITDA

8.52

EV to Capital Employed

1.57

EV to Sales

0.61

PEG Ratio

2.31

Dividend Yield

ROCE (Latest)

13.28%

ROE (Latest)

10.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.69% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 8.71

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 199.5 MM

INTEREST(HY)

At CAD 14.1 MM has Grown at 50%

DEBT-EQUITY RATIO (HY)

Highest at 23.23 %

INTEREST COVERAGE RATIO(Q)

Lowest at 968.57

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.12 times

PRE-TAX PROFIT(Q)

At CAD 40.1 MM has Fallen at -26.72%

NET PROFIT(Q)

At CAD 30.4 MM has Fallen at -26.7%

Here's what is working for Russel Metals, Inc.

Dividend per share

Highest at CAD 8.71

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -3.69% (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 Russel Metals, Inc.

Interest

At CAD 14.1 MM has Grown at 50%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 199.5 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 (CAD MM)

Interest Coverage Ratio

Lowest at 968.57

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 23.23 % 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

Pre-Tax Profit

At CAD 40.1 MM has Fallen at -26.72%

over average net sales of the previous four periods of CAD 54.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 30.4 MM has Fallen at -26.7%

over average net sales of the previous four periods of CAD 41.48 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Inventory Turnover Ratio

Lowest at 4.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio