RS Intrinsic Value Calculator – Reliance Steel & Aluminum Co. Enjoys Strong Demand, Growth Through Acquisitions
June 26, 2023
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Reliance Steel & Aluminum ($NYSE:RS) Co. (NYSE: RS) is a leading metals service center providing a wide range of value-added metals processing services and products. With a strong focus on customer service, the company has one of the most diversified product offerings in the metals industry, making it a preferred supplier of steel products and aluminum products for clients across numerous end-use markets. In recent years, Reliance Steel & Aluminum Co. has been on an aggressive acquisition spree, purchasing other metal service centers to expand their product and services portfolio.
This proactive approach has allowed the company to capitalize on the strong demand across their key end-use markets and take advantage of lucrative opportunities in the metals sector. As a result of their acquisitions and organic growth, Reliance Steel & Aluminum Co. has been able to increase their market share and bolster their financial performance.
Stock Price
Reliance Steel & Aluminum Co. has been enjoying strong demand and growth, as evidenced by its stock prices on Tuesday. The stock opened at $239.3 and closed at $245.1, representing a 2.4% increase from the previous closing price of 239.4. This surge in stock prices is an indication of the strength of the company’s demand and growth. The company has achieved sustained growth through strategic acquisitions over the past few years, diversifying its product offerings and customer base.
Reliance Steel & Aluminum Co. has also made numerous investments in order to expand its presence in the metals industry, and have become one of the largest metals service centers in North America. Overall, Reliance Steel & Aluminum Co. is well-positioned for continued success and growth in the future, given its strong demand and growth achieved through strategic acquisitions and investments. 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 |
| 16.5k | 1.7k | 9.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RS. More…
| Operations | Investing | Financing |
| 2.1k | -387.8 | -1.44k |
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 |
| 10.2k | 2.85k | 124.84 |
Key Ratios Snapshot
Some of the financial key ratios for RS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | 35.4% | 14.5% |
| FCF Margin | ROE | ROA |
| 10.4% | 20.7% | 14.6% |
Analysis – RS Intrinsic Value Calculator
At GoodWhale, we have performed an analysis of RELIANCE STEEL & ALUMINUM’s financials and have determined the fair value of the company’s share to be around $216.1 – calculated by our proprietary Valuation Line. Currently, the stock is trading at $245.1, thus overvalued by 13.4%. This indicates that there may be potential opportunities for investors to capitalize on this market inefficiency. Although the stock may be overvalued, investors should carefully consider the risks associated with any investment before making a decision. More…
Peers
Reliance Steel & Aluminum Co., Universal Stainless & Alloy Products Inc., Jiangsu Shagang Co Ltd, and Xinjiang Ba Yi Iron & Steel Co Ltd are all steel and aluminum companies. They all have their own unique offerings, but they compete with each other in the market.
– Universal Stainless & Alloy Products Inc ($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 seen a surge in demand from key markets, allowing them to diversify their product base and expand their portfolio through strategic acquisitions. This has enabled them to increase their overall market share and become one of the largest steel and aluminum companies in the world. Investors have seen a positive return on their investments, as the company’s stock price has increased steadily over the past few years. The company’s strong fundamentals and acquisitions strategy have provided long-term value to shareholders and looks to continue doing so into the future.
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