Reliance Steel & Aluminum Co. (NYSE:RS) shares fell to a low of $153.4349 before closing at $154.74. Intraday shares traded counted 0.5 million, which was -24.89% lower than its 30-day average trading volume of 397.78K. RS’s previous close was $162.21 while the outstanding shares total 63.65M. The firm has a beta of 1.07, a 12-month trailing P/E ratio of 17.42, and a growth ratio of 1.69. The stock’s Relative Strength Index (RSI) is 32.77, with weekly volatility at 3.25% and ATR at 4.89. The RS stock’s 52-week price range has touched low of $89.38 and a $181.21 high. The stock traded lower over the last trading session, losing -4.61% on 06/17/21.
Investors have identified the Steel company Reliance Steel & Aluminum Co. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $9.83 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Reliance Steel & Aluminum Co. (RS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RS, the company has in raw cash 760.3 million on their books with 5.2 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3.58 billion total, with 823.7 million as their total liabilities.
RS were able to record 118.1 million as free cash flow during the 07/22/2021 quarter of the year, this saw their quarterly net cash flow reduce by 76.8 million. In cash movements, the company had a total of 161.8 million as operating cash flow.
Potential earnings growth for Reliance Steel & Aluminum Co. (RS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/22/2021 quarter of the year, Reliance Steel & Aluminum Co. recorded a total of 2.84 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.35% coming in sequential stages and their sales for the 07/22/2021 quarter increasing by 24.81%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.88 billion trying to sell their products during the last quarter, with the result yielding a gross income of 953.7 million. This allows shareholders to hold on to 63.65M with the recently reported earning now reading 4.21 cents per share. This is a figure that compared to analyst’s prediction for their 07/22/2021 (4.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 10.47 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RS sounds very interesting.
Is the stock of RS attractive?
In related news, CEO, HOFFMAN JAMES DONALD sold 5,000 shares of the company’s stock in a transaction that recorded on Apr 06. The sale was performed at an average price of 156.71, for a total value of 783,541. As the sale deal closes, the SVP, General Counsel, Corp Sec, Smith William A II now sold 7,860 shares of the company’s stock, valued at 1,088,374. Also, President, Lewis Karla R sold 12,604 shares of the company’s stock in a deal that was recorded on Feb 24. The shares were price at an average price of 135.86 per share, with a total market value of 1,712,370. Following this completion of acquisition, the VP, Corporate Controller, Ajemyan Arthur now holds 2,275 shares of the company’s stock, valued at 272,304. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.
2 out of 7 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Reliance Steel & Aluminum Co.. 0 analysts has assigned a Sell rating on the RS stock. The 12-month mean consensus price target for the company’s shares has been set at $164.00.