Reliance RS
Reliance, Inc. is a North American distributor and processor of steel and metal products, buying steel from producers and processing and distributing it to industrial manufacturers, earning through volume and service rather than own production. Reliance, Inc. shows solid financial health (debt/EBITDA of 1.14x) and strong growth (revenue +26.5%), although its free cash flow conversion is weak (22.3%) and its valuation is not particularly attractive (P/E 22.5, FCF yield 1.75%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Reliance, Inc. is a North American distributor and processor of steel and metal products, buying steel from producers and processing and distributing it to industrial manufacturers, earning through volume and service rather than own production. Reliance, Inc. shows solid financial health (debt/EBITDA of 1.14x) and strong growth (revenue +26.5%), although its free cash flow conversion is weak (22.3%) and its valuation is not particularly attractive (P/E 22.5, FCF yield 1.75%).
Score by category
| Category | Score |
|---|---|
| Financial health | 7.2 |
| Quality / Moat | 5.1 |
| Valuation | 5.3 |
| Growth | 8.8 |
| Dividend | 5.6 |
| Momentum | 5.6 |
| Risk & Context | 6.6 |
OVERALL SCORE: 6.1/10
Context and risks
The macro context (ECB rate hike, gold decline, geopolitical tensions) does not materially affect Reliance's steel distribution and processing business in North America. Its demand comes from industrial manufacturing, not from sectors directly exposed to the mentioned factors.
News considered in the analysis
- BASFY Launches Lower-Carbon Paper Coating Dispersions — Noticia de producto de un competidor (BASF) en un segmento químico, sin impacto directo en el negocio de distribución de acero de Reliance.
- Best Momentum Stocks to Buy for September 25th — Listículo genérico de selección de valores sin información específica sobre Reliance.
- Arkema Expands Portfolio with New Additive for Polyurethane Foam — Noticia de producto de otra empresa química, sin relevancia para el negocio de Reliance.
- RS or WPM: Which Is the Better Value Stock Right Now? — Comparativa genérica de valoración sin datos concretos que afecten a los fundamentales de Reliance.
- Kinross Gold Updates Production Outlook, Raises Capital Return Target — Noticia de una empresa minera de oro no relacionada con la actividad de distribución de acero de Reliance.
Verdict: Hold positions: fundamentals are decent, but valuation does not offer enough margin of safety for an aggressive buy.
Main risk: The main risk is the weak conversion of earnings to free cash flow (22.3%), which could indicate working capital issues or aggressive investments in a higher interest rate environment.
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