RELIANCE STEEL & ALUMINUM Reports 17.1% Decrease in Total Revenue for FY2023 Q2

🌥️Earnings Overview

On July 27 2023, RELIANCE STEEL & ALUMINUM ($NYSE:RS) reported a total revenue of USD 3880.3 million for their Q2 of FY2023, a 17.1% decline from the same period the year before. Net income was also down 32.8%, totaling USD 385.1 million.

Analysis

GoodWhale’s analysis of RELIANCE STEEL & ALUMINUM reveals that it is classified as a ‘rhino’ company. This type of company usually indicates that it has achieved moderate revenue or earnings growth. Therefore, this company would be attractive to a variety of investors looking for a more conservative investment. RELIANCE STEEL & ALUMINUM is strong in asset, dividend, growth, and profitability. With regards to its cashflows and debt, GoodWhale has given a health score of 10/10, indicating that this company is capable of safely weathering any crisis without bankruptcy risk. With these fundamentals in mind, RELIANCE STEEL & ALUMINUM could be a great investment for those looking for stability and growth. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for RS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for RS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for RS. More…

Key Ratios Snapshot

Some of the financial key ratios for RS are shown below. More…

Peers

Reliance Steel & Aluminum Co., Universal Stainless & Alloy Products Inc., Jiangsu Shagang Co Ltd, and Xinjiang Ba Yi Iron & Steel Co Ltd are all steel and aluminum companies. They all have their own unique offerings, but they compete with each other in the market.

– Universal Stainless & Alloy Products Inc ($NASDAQ:USAP)

Universal Stainless & Alloy Products Inc is a company that manufactures and sells stainless steel and nickel alloy mill products. The company has a market cap of 65.99M as of 2022 and a Return on Equity of -1.12%. Universal Stainless & Alloy Products Inc is a publicly traded company on the NASDAQ Stock Market under the ticker symbol “USAP”.

– Jiangsu Shagang Co Ltd ($SZSE:002075)

Jiangsu Shagang Co., Ltd. is a Chinese state-owned steel producer. The company is based in Zhangjiagang, Jiangsu Province, and is listed on the Shanghai Stock Exchange. Jiangsu Shagang is one of the largest private steel companies in China, with an annual output of over 20 million tons of steel. The company produces a wide range of steel products, including hot and cold rolled coils, galvanized sheets, and stainless steel products. In addition to its steel operations, Jiangsu Shagang also has businesses in coal mining, power generation, and real estate development.

– Xinjiang Ba Yi Iron & Steel Co Ltd ($SHSE:600581)

Xinjiang Ba Yi Iron & Steel Co Ltd has a market cap of 5.58B as of 2022, a Return on Equity of -24.16%. The company is engaged in the production and sale of iron and steel products. It is one of the largest iron and steel companies in China. The company’s products are used in a variety of industries, including construction, automotive, machinery manufacturing, and shipbuilding.

Summary

Investors in Reliance Steel & Aluminum may have been disappointed by the company’s recently reported Q2 FY2023 earnings results. Total revenue for the quarter was down 17.1% compared to the same period last year, amounting to USD 3880.3 million. Net income was also down by 32.8%, coming in at USD 385.1 million. After the announcement, the stock price dropped, reflecting investor sentiment toward the company’s performance.

Given the overall downward trend in their financials, investors should take caution when considering Reliance Steel & Aluminum as an investment. Analyzing the company’s financials in further detail, and considering factors such as the broader market conditions, may provide more accurate guidance for potential investors.