Home Sectors Basic Materials Latest Valuation: Reliance Steel And Aluminum Co. (NYSE: RS)

Latest Valuation: Reliance Steel And Aluminum Co. (NYSE: RS)


Reliance Steel And Aluminum Co. is in the steel industry and basic materials sector. The company CEO is James D. Hoffman. Reliance Steel and Aluminum Co is engaged in providing metal processing and inventory management services for carbon and stainless steel, aluminum, alloys, brass and copper, and titanium.

Previous Intraday Trading Performance:

The RS stock showed a previous change of 1.58% with an open at 85.64 and a close of 86.44. It reached an intraday high of 86.73 and a low of 85.33.

SeekingAlpha:  U.S. Steel cut to Sell at Goldman Sachs


The stock has a market cap of $5.8b with 67.2m shares outstanding, of which the float is 64.2m shares. Trading volume reached 334,546 shares compared to its average volume of 464,767 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Reliance Steel And Aluminum Co. shares returned 1.91% and in the past 30 trading days it returned -2.63%. Over three months, it changed -2.32%. In one year it has changed -6.65% and within that year its 52-week high was 96.70 and its 52-week low was 68.62. RS stock is 25.97% above its 52 Week Low.

Our calculations show a 200 day moving average of 83.01 and a 50 day moving average of 89.03. Currently RS stock is trading 4.13% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  U.S. Steel cut to Sell at Goldman Sachs


The last annual fiscal EPS for the company was reported at 8.75 that ended on 31st of December 2018, which according to the previous close, that is a PE of 9.88. Based on 6 analyst estimates, the consensus EPS for the next quarter is 2.39. The TTM EPS is 8.90, which comes to a TTM PE of 9.71. Historically, the PE high was 21.20 and the PE low was 8.20. If the stock reached its PE low, that would represent a price of 73.00, which is a decrease of -15.55%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/25/2019): 2.80
4thQtr of 2018 (Reported on 02/21/2019): 1.22
3rdQtr of 2018 (Reported on 10/25/2018): 2.03
2ndQtr of 2018 (Reported on 07/26/2018): 3.16
1stQtr of 2018 (Reported on 04/26/2018): 2.30

The dividend per share is currently 2.20, which is a dividend yield of 2.55%. Also, the payout ratio is 24.72%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 99.63, which means it is possibly undervalued and has a margin of safety of 13.24%.

Indicators to Watch:

Short-interest was 1,041,233, which was 1.55% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.22. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.27.

PR Newswire:  TDS and U.S. Cellular announce financial leadership appointments

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 14.30%, return on assets is 8.22%, profit margin is 5.74%, price-to-sales is 0.49 and price-to-book is 1.18.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 5  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.