Reliance Steel Revenue vs. Total Debt

RS Stock  USD 336.90  5.52  1.67%   
Taking into consideration Reliance Steel's profitability measurements, Reliance Steel's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Reliance Steel's ability to earn profits and add value for shareholders. Price To Sales Ratio is likely to gain to 1.16 in 2024. Operating Cash Flow Sales Ratio is likely to gain to 0.12 in 2024. At this time, Reliance Steel's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 1.8 B in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 724.8 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2906
Way Down
Slightly volatile
Net Profit Margin0.09470.0902
Sufficiently Up
Slightly volatile
Operating Profit Margin0.06080.1175
Way Down
Slightly volatile
Pretax Profit Margin0.120.1176
Fairly Up
Slightly volatile
Return On Assets0.130.1267
Fairly Up
Slightly volatile
Return On Equity0.10.173
Way Down
Slightly volatile
For Reliance Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reliance Steel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reliance Steel Aluminum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reliance Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reliance Steel Aluminum over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center.
Is Reliance Steel's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Reliance Steel. If investors know Reliance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Reliance Steel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.20)
Dividend Share
4
Earnings Share
22.63
Revenue Per Share
253.839
Quarterly Revenue Growth
(0.08)
The market value of Reliance Steel Aluminum is measured differently than its book value, which is the value of Reliance that is recorded on the company's balance sheet. Investors also form their own opinion of Reliance Steel's value that differs from its market value or its book value, called intrinsic value, which is Reliance Steel's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Reliance Steel's market value can be influenced by many factors that don't directly affect Reliance Steel's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Reliance Steel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reliance Steel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reliance Steel's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Reliance Steel Aluminum Total Debt vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reliance Steel's current stock value. Our valuation model uses many indicators to compare Reliance Steel value to that of its competitors to determine the firm's financial worth.
Reliance Steel Aluminum is rated fourth in revenue category among related companies. It is rated below average in total debt category among related companies making up about  0.09  of Total Debt per Revenue. The ratio of Revenue to Total Debt for Reliance Steel Aluminum is roughly  10.75 . Total Debt To Capitalization is likely to drop to 0.13 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Reliance Steel by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Reliance Steel's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Reliance Steel's earnings, one of the primary drivers of an investment's value.

Reliance Revenue vs. Competition

Reliance Steel Aluminum is rated fourth in revenue category among related companies. Market size based on revenue of Materials industry is at this time estimated at about 76.86 Billion. Reliance Steel retains roughly 14.81 Billion in revenue claiming about 19% of all equities under Materials industry.

Reliance Total Debt vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Reliance Steel

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
14.81 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Reliance Steel

Total Debt

 = 

Bonds

+

Notes

 = 
1.38 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Reliance Total Debt vs Competition

Reliance Steel Aluminum is rated below average in total debt category among related companies. Total debt of Materials industry is at this time estimated at about 23.56 Billion. Reliance Steel holds roughly 1.38 Billion in total debt claiming about 6% of all equities under Materials industry.
Total debt  Workforce  Valuation  Capitalization  Revenue

Reliance Steel Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reliance Steel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reliance Steel will eventually generate negative long term returns. The profitability progress is the general direction of Reliance Steel's change in net profit over the period of time. It can combine multiple indicators of Reliance Steel, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-76.7 M-72.9 M
Operating Income1.7 B1.8 B
Income Before Tax1.7 B1.8 B
Total Other Income Expense Net1.2 M1.3 M
Net Income1.3 B1.4 B
Income Tax Expense400.6 M420.6 M
Net Income Applicable To Common Shares2.1 B2.2 B
Net Income From Continuing Ops1.3 B724.8 M
Non Operating Income Net Other-2.8 M-2.7 M
Interest Income35.2 M49.9 M
Net Interest Income-103.3 M-108.5 M
Change To Netincome107.3 M112.7 M
Net Income Per E B T 0.77  0.54 

Reliance Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Reliance Steel. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Reliance Steel position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Reliance Steel's important profitability drivers and their relationship over time.

Use Reliance Steel in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Reliance Steel position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Reliance Steel will appreciate offsetting losses from the drop in the long position's value.

Reliance Steel Pair Trading

Reliance Steel Aluminum Pair Trading Analysis

The ability to find closely correlated positions to Reliance Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Steel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Reliance Steel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Reliance Steel Aluminum to buy it.
The correlation of Reliance Steel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Reliance Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Steel Aluminum moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Reliance Steel can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Reliance Steel position

In addition to having Reliance Steel in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run High Yield ETFs Thematic Idea Now

High Yield ETFs
High Yield ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The High Yield ETFs theme has 95 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize High Yield ETFs Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Reliance Steel Aluminum is a strong investment it is important to analyze Reliance Steel's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Reliance Steel's future performance. For an informed investment choice regarding Reliance Stock, refer to the following important reports:
Check out Your Equity Center.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Complementary Tools for Reliance Stock analysis

When running Reliance Steel's price analysis, check to measure Reliance Steel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reliance Steel is operating at the current time. Most of Reliance Steel's value examination focuses on studying past and present price action to predict the probability of Reliance Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reliance Steel's price. Additionally, you may evaluate how the addition of Reliance Steel to your portfolios can decrease your overall portfolio volatility.
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
To fully project Reliance Steel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reliance Steel Aluminum at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Reliance Steel's income statement, its balance sheet, and the statement of cash flows.
Potential Reliance Steel investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Reliance Steel investors may work on each financial statement separately, they are all related. The changes in Reliance Steel's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Reliance Steel's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.