Yahoo Finance A Holistic Look At Reliance Steel & Aluminum Co (NYSE:RS)
Reliance Steel & Aluminum Co (NYSE:RS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of RS, it is a financially-robust , dividend-paying company with a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Reliance Steel & Aluminum here.
Excellent balance sheet with solid track record and pays a dividend
Over the past few years, RS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did RS outperformed its past performance, its growth also surpassed the Metals and Mining industry expansion, which generated a 62% earnings growth. This is what investors like to see! RS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that RS has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. RS appears to have made good use of debt, producing operating cash levels of 0.24x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, RS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.3%.
Next Steps:
For Reliance Steel & Aluminum, there are three essential factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for RS’s future growth? Take a look at our free research report of analyst consensus for RS’s outlook.
Valuation: What is RS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RS is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
