RS Intrinsic Value – Reliance Steel & Aluminum Reports Insider Transactions Totaling $4.34M
December 8, 2023
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Reliance Steel & Aluminum ($NYSE:RS) Co. (RS & A) has reported insider transactions totaling $4.34M. RS & A is a leading metals service center company in the United States and the largest metals service center company in North America. The reported transactions include purchases of RS & A stock by two directors, David Hannah and Robert Peiser, both of whom are members of the Board of Directors for the company. This purchase represents an increase in the holdings of the two directors and is an indication of their confidence in the company’s long-term prospects.
These purchases are also a signal to investors that the company’s management is confident in its current and future performance. With the recent news of the insider transactions, investors may find these figures even more encouraging and could be motivated to invest in the company’s stock.
Share Price
The stock opened at $269.3 and closed at $267.0, down by 1.0% from its prior closing price of 269.7. This volatile trading activity was noticed by investors who had been tracking the company’s stock for some time. A majority of the insider activity has been concentrated on the options market, with only small amounts of buying and selling in the open market. The trend of insider activity does not usually serve as an indicator of near-term stock performance, but rather as an indication of the long-term strategy of the company and its primary shareholders.
In this case, it is difficult to discern any particular direction or implications the company might be taking. Overall, Reliance Steel & Aluminum Co’s stock experienced a slight decrease on Wednesday despite the sizable insider transactions. The future stock performance of the company remains to be seen, and investors should keep a close watch over the company’s activities in the near future. 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 |
| 15.08k | 1.41k | 9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RS. More…
| Operations | Investing | Financing |
| 1.95k | -471.9 | -1.15k |
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 |
| 10.49k | 2.76k | 132.97 |
Key Ratios Snapshot
Some of the financial key ratios for RS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.2% | 38.2% | 13.2% |
| FCF Margin | ROE | ROA |
| 10.0% | 16.2% | 11.9% |
Analysis – RS Intrinsic Value
At GoodWhale, we conducted an in-depth analysis of RELIANCE STEEL & ALUMINUM and found that the company has strong fundamentals. Using our proprietary Valuation Line, we determined that the fair value of RELIANCE STEEL & ALUMINUM is approximately $215.5. However, the stock is currently trading at $267.0, which suggests it is overvalued by 23.9%. We recommend investors take this into consideration when evaluating investment opportunities in the company. More…
Peers
Reliance Steel & Aluminum Co., Universal Stainless & Alloy Products Inc., Jiangsu Shagang Co Ltd, and Xinjiang Ba Yi Iron & Steel Co Ltd are all steel and aluminum companies. They all have their own unique offerings, but they compete with each other in the market.
– Universal Stainless & Alloy Products Inc ($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 has reported insider transactions worth a total of $4.34M. This brings up an interesting investment opportunity for those looking to invest in the company. The company has a strong balance sheet with a high return on equity, and experienced management. Analysts have suggested that the company’s stock could potentially be a good buy for long-term investors. Moreover, Reliance Steel & Aluminum has consistently demonstrated a strong track record of profitability and dividend payouts over the years.
The company’s current dividend yield is close to 4%, which is above the industry average. Reliance Steel & Aluminum also has a low debt-to-equity ratio and a healthy debt structure, which adds to its overall attractiveness as an investment option. Overall, investors should conduct a thorough analysis before making an investment decision.
