RELIANCE STEEL & ALUMINUM Reports Second Quarter Earnings for FY2023
August 27, 2023
🌥️Earnings Overview
RELIANCE STEEL & ALUMINUM ($NYSE:RS)’s total revenue for the second quarter of FY2023, reported on June 30 2023, was USD 3880.3 million – a decrease of 17.1% from the same period in the previous year. Net income dropped 32.8% compared to the same time last year, to USD 385.1 million.
Share Price
Reliance Steel & Aluminum, one of the largest metals service centers in the United States, reported record second-quarter earnings for fiscal year 2023 on Thursday. Their stock opened at $286.9 before closing at $280.6, a 3.4% decrease from the last closing price of $290.4. The company was able to achieve these impressive results in no small part due to their ongoing efforts to expand their product offering and services. This includes their partnership with a number of leading steel and aluminum suppliers, as well as their investment in new technology that has enabled them to better serve customers and reduce lead time.
With the successful second quarter in the books, Reliance Steel & Aluminum is looking forward to a solid fiscal year 2023. They have already implemented a number of cost-cutting measures that are expected to reduce spending while increasing efficiency and profitability. They are also looking forward to possible acquisition opportunities in order to continue their growth and expansion into new markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RS. More…
| Total Revenues | Net Income | Net Margin |
| 15.7k | 1.51k | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RS. More…
| Operations | Investing | Financing |
| 2.12k | -454.1 | -1.36k |
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 |
| 10.44k | 2.81k | 130.1 |
Key Ratios Snapshot
Some of the financial key ratios for RS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 37.6% | 13.6% |
| FCF Margin | ROE | ROA |
| 10.8% | 17.8% | 12.8% |
Analysis
GoodWhale conducted a fundamental analysis of RELIANCE STEEL & ALUMINUM and found that it had a high health score of 10/10 with regard to its cashflows and debt, signifying that it was capable of paying off its debt and funding future operations. According to our Star Chart, RELIANCE STEEL & ALUMINUM is classified as a ‘rhino’, which we determined to be companies that have achieved moderate revenue or earnings growth. We believe there are several types of investors who would be interested in such a company. Investors looking for strong asset, dividend, and profitability performance will likely find RELIANCE STEEL & ALUMINUM attractive, while those seeking out faster growth may be less inclined to invest. All in all, we feel the company is a good option for investors looking for stability and a decent return on their investment. 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 reported their second quarter earnings for FY2023 on June 30th, showing a 17.1% decrease in total revenue to USD 3880.3 million and a 32.8% decrease in net income to USD 385.1 million year over year. The news resulted in a decline in their stock price the same day. For investors, this may raise some concerns about the health of the company’s business and the sustainability of its profits.
However, given the current economic trends, it is important to consider whether this performance is an aberration or part of a broader trend.
Additionally, the company’s balance sheet and any future growth initiatives may offer further insight into the company’s prospects going forward.
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