RELIANCE STEEL & ALUMINUM Reports Fourth Quarter FY2022 Earnings Results as of December 31, 2022.
February 25, 2023
Earnings Overview
On February 16 2023, RELIANCE STEEL & ALUMINUM ($NYSE:RS) released their fourth quarter of FY2022 financial results ending on December 31 2022. Their total revenue dropped by 16.8% from the same period in the preceding year, totaling USD 350.5 million. Net income for the quarter was USD 3610.8 million, a 9.5% decline from the same period in the previous year.
Transcripts Simplified
Reliance Steel & Aluminum posted fourth quarter earnings of $5.88 per diluted share, fueled by LIFO income of $99.1 million and a lower than expected tax rate. Despite significant decreases in metal pricing, the company experienced solid overall demand trends and generated record quarterly cash flow of $808.7 million through effective working capital management. Non-GAAP SG&A expenses decreased by 1.5% year-over-year, driven by lower incentive based compensation and variable warehousing/delivery expenses. Reliance Steel & Aluminum expects LIFO income of $60 million for 2023.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RS. More…
| Total Revenues | Net Income | Net Margin |
| 17.02k | 1.84k | 10.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RS. More…
| Operations | Investing | Financing |
| 2.12k | -348.5 | -892.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.33k | 3.23k | 116 |
Key Ratios Snapshot
Some of the financial key ratios for RS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.8% | 35.8% | 14.6% |
| FCF Margin | ROE | ROA |
| 10.4% | 22.4% | 15.1% |
Stock Price
On Thursday, RS&A’s stock opened at $240.9 and closed at $243.1, up 4.1% from the last closing price of 233.4. This improvement was driven by higher than expected sales and cost of capital initiatives. Overall, RELIANCE STEEL & ALUMINUM reported strong fourth quarter financial results, with improved balance sheet position and solid top and bottom line growth. The company has continued to focus on operational efficiency and cost control initiatives as it looks to strengthen its financial performance in the years ahead. Live Quote…
Analysis
At GoodWhale, we offer a comprehensive range of financial and business analysis services to help you make an informed decision when it comes to investing in RELIANCE STEEL & ALUMINUM. Our Risk Rating system enables you to evaluate the company’s risk profile across various financial and business aspects. We have found that RELIANCE STEEL & ALUMINUM has a low risk rating, indicating that it is a safe and secure investment. If you’re looking to dig deeper into the company’s fundamentals, our advanced analytics powered by AI and Machine Learning can help you identify potential risks and areas of improvement. All you need to do is register on our website for free, and you’ll be able to explore all the information you need. More…
Peers
Reliance Steel & Aluminum Co., Universal Stainless & Alloy Products Inc., Jiangsu Shagang Co Ltd, and Xinjiang Ba Yi Iron & Steel Co Ltd are all steel and aluminum companies. They all have their own unique offerings, but they compete with each other in the market.
– Universal Stainless & Alloy Products Inc ($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
Reliance Steel & Aluminum’s fourth quarter financial results for FY2022 showed decreased revenue and net income compared to the prior year period. Total revenue for the quarter came in at USD 350.5 million, down 16.8%, and net income was USD 3610.8 million, a decrease of 9.5%. The company’s stock price, however, saw an increase on the same day of release.
As such, investors must evaluate whether Reliance Steel & Aluminum is still a viable investment, taking into account its potential to recover from current losses and the potential dangers of future volatility in the metal industry. Analysts must consider the company’s liquidity and financial health, current and past performance, industry news, and future plans moving forward.
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