Reliance, Inc. (RS) stock analysis

P/E above its 5-year median

Reliance's P/E of 20.0 is above its own 5-year median of 11.3.

P/E below the industry

Reliance's P/E of 20.0 is below the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

Reliance's EV/EBITDA of 12.9 is above its 5-year median of 7.3.

P/B above the industry

Reliance's price-to-book of 2.84 is above the Wholesale Trade-durable Goods median of 2.15.

Trading above fair value

The share price of $429.88 is above our fair value estimate of $317.77.

Margin of safety under 20%

The price is 35.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -22.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 24.7% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.

Guidance raised

Reliance raised its second quarter of 2026 average selling price per ton sold outlook on Apr 22, 2026.

Gross margin slipping

Gross margin was 28.1% over the last twelve months, against 29.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 13.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Reliance's return on equity of 14.7% is above the Wholesale Trade-durable Goods median of 7.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin above the industry

Reliance's net margin of 6.4% is above the Wholesale Trade-durable Goods median of 1.9%.

Low debt

Debt is 21.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 32.0% five years ago to 21.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 48.9% of total debt.

Interest well covered

Operating income covers interest expense 22.6 times.

Short-term assets cover short-term debts

Current assets are 4.12 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.68; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Reliance paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Reliance yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.