Reliance Steel & Aluminum Co. (RS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Reliance Steel & Aluminum Co. (RS) Materials & Commodity Exposure

Reliance Steel & Aluminum Co. is a diversified metal solutions provider and the largest metals service center company in North America. With approximately 315 locations, the company distributes 100,000 metal products and provides processing services to a wide range of industries, maintaining a strong market presence.

What Is the Investment Thesis for RS?

Reliance Steel & Aluminum Co. presents a compelling investment case due to its diversified product offerings, extensive service center network, and exposure to various end markets. The company's ability to adapt to changing market conditions and maintain strong relationships with original equipment manufacturers supports consistent revenue generation. With a market capitalization of $19.6B and a dividend yield of 1.31%, Reliance Steel & Aluminum Co. offers a blend of value and income potential. Growth catalysts include strategic acquisitions and expansions into high-growth sectors. However, investors may want to evaluate the cyclical nature of the steel industry and potential fluctuations in metal prices as key risk factors.

Based on FMP financials and quantitative analysis

RS Key Highlights

• Market capitalization of $19.6B, reflecting its significant presence in the metals service center industry.
• P/E ratio of 24.0, indicating investor expectations for future earnings growth.
• Gross margin of 27.2%, showcasing efficient cost management and value-added services.
• Dividend yield of 1.31%, providing a steady income stream for investors.
• Beta of 0.87, suggesting lower volatility compared to the broader market.

Who Are RS's Competitors?

RS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are RS's Key Strengths?

• Extensive network of service centers
• Diversified product offerings
• Strong customer relationships
• Value-added processing capabilities

What Are RS's Weaknesses?

• Exposure to cyclical industry fluctuations
• Dependence on commodity prices
• Potential for supply chain disruptions
• High capital expenditure requirements

What Could Drive RS Stock Higher?

• Infrastructure development projects in North America driving demand for steel and aluminum products.
• Expansion of manufacturing activity in key industries such as automotive and aerospace.
• Potential acquisitions of smaller metal service centers to expand market presence.
• Continued focus on value-added services to enhance customer relationships.

What Are the Key Risks for RS?

• Insider selling — insiders were net sellers of roughly $11.0M recently.
• Economic downturns leading to reduced demand for metal products.
• Fluctuations in metal prices impacting profitability.
• Increased competition from other metal service centers.
• Supply chain disruptions affecting the availability of raw materials.

What Are the Growth Opportunities for RS?

• Expansion into High-Growth Sectors: Reliance Steel & Aluminum Co. can capitalize on the increasing demand for specialty metals in high-growth sectors such as aerospace and electronics. By expanding its product offerings and processing capabilities to cater to these industries, the company can drive revenue growth. The aerospace metals market, for instance, is projected to reach $15 billion by 2028, presenting a significant opportunity for Reliance Steel & Aluminum Co.
• Strategic Acquisitions: Reliance Steel & Aluminum Co. has a history of successful acquisitions, which have expanded its geographic reach and product portfolio. Pursuing further strategic acquisitions of smaller metal service centers or specialized processing companies can enhance its market position and create synergies. The company's strong balance sheet provides the financial flexibility to execute such acquisitions.
• Enhanced Value-Added Services: Offering more advanced metal processing services, such as precision cutting, machining, and finishing, can increase Reliance Steel & Aluminum Co.'s value proposition to customers. By investing in advanced equipment and technologies, the company can attract higher-margin business and differentiate itself from competitors. The market for value-added metal processing services is growing, driven by the increasing complexity of manufacturing processes.
• Geographic Expansion: Expanding its presence in emerging markets, particularly in Asia and South America, can provide Reliance Steel & Aluminum Co. with new growth opportunities. These regions are experiencing rapid industrialization and infrastructure development, driving demand for metal products and services. Establishing service centers in these markets can position the company to capture a share of this growth.
• Digital Transformation: Implementing digital technologies, such as e-commerce platforms and data analytics, can improve operational efficiency and enhance customer service. By leveraging data analytics, Reliance Steel & Aluminum Co. can optimize inventory management, pricing strategies, and supply chain operations. Investing in a user-friendly e-commerce platform can also attract new customers and streamline the ordering process.

What Opportunities Does RS Have?

• Expansion into high-growth sectors
• Strategic acquisitions
• Enhanced value-added services
• Geographic expansion in emerging markets

What Threats Does RS Face?

• Increased competition
• Fluctuations in metal prices
• Economic downturns
• Regulatory changes

What Are RS's Competitive Advantages?

• Extensive service center network providing broad geographic coverage.
• Diversified product offerings catering to various industries.
• Strong relationships with suppliers and customers.
• Value-added processing services enhancing customer value.

What Does RS Do?

Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. has grown to become a leading metal solutions provider and the largest metals service center company in North America. The company operates a vast network of approximately 315 locations, including 40 states in the United States and 13 in other countries, offering an extensive range of metal products and value-added processing services. Reliance Steel & Aluminum Co. distributes approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products. These products cater to diverse industries such as general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries. In addition to distribution, Reliance Steel & Aluminum Co. provides comprehensive metals processing services, which include cutting, machining, and finishing. The company also distributes non-ferrous metals products and tubular building products and manufactures specialty extruded metals, fabricated parts, and welded components. Reliance Steel & Aluminum Co. sells its products directly to original equipment manufacturers, primarily small machine shops and fabricators, ensuring tailored solutions and responsive service.

What Products and Services Does RS Offer?

• Distributes a wide range of metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, and titanium.
• Provides metal processing services such as cutting, machining, and finishing.
• Serves diverse industries including general manufacturing, construction, transportation, and aerospace.
• Operates a network of approximately 315 locations in the United States, Canada, and internationally.
• Distributes non-ferrous metals products and tubular building products.
• Manufactures specialty extruded metals, fabricated parts, and welded components.

How Does RS Make Money?

• Procures metal products from various suppliers.
• Distributes these products through its network of service centers.
• Provides value-added processing services to customers.
• Generates revenue through product sales and service fees.

What Industry Does RS Operate In?

Reliance Steel & Aluminum Co. operates within the cyclical steel industry, which is influenced by macroeconomic factors, infrastructure development, and manufacturing activity. The industry is characterized by intense competition and fluctuating metal prices. Reliance Steel & Aluminum Co.'s extensive network and diversified product offerings provide a competitive edge. The company's focus on value-added services and strategic acquisitions positions it favorably within the market. The global metals service center industry is expected to grow, driven by increased demand from construction, automotive, and aerospace sectors.

Who Are RS's Key Customers?

• Original equipment manufacturers (OEMs)
• Small machine shops and fabricators
• Companies in general manufacturing, construction, transportation, aerospace, energy, and electronics industries

ROE 11%Key Financial Metrics

Return on equity for Reliance Steel & Aluminum Co. stands at 11.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.5%, showing how much profit it generates from its asset base. RS trades at a trailing price-to-earnings ratio of 23.99, above the Basic Materials sector average of ~21x. Its free cash flow yield is 3.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.39 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.2%, the inverse of the P/E and a quick read on earnings relative to price.

How Reliance Steel & Aluminum Co. Is Valued

Reliance Steel & Aluminum Co. carries a market capitalization of $19.6B, placing it in the large-cap category. Relative to its peer group, RS's quantitative score of 89/100 is above the peer average of 54/100.

F-Score 7/9Financial Health

Reliance Steel & Aluminum Co.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 6.34 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2026 estForward Outlook

Wall Street analysts project Reliance Steel & Aluminum Co. revenue of about $16.21B for fiscal 2026, with EPS near $20.07. The estimate reflects 6 contributing analysts.

Net buyingInsider Activity

Over the past six months, Reliance Steel & Aluminum Co. insiders filed 27 SEC Form 4 transactions — 11 sales and 16 purchases. On net that is roughly 34K shares acquired (about $11.0M) — insiders putting money in tends to read as conviction.

RS Financials

RS Latest News

RS Analyst Consensus

RS MoonshotScore

Latest Reliance Steel & Aluminum Co. Analysis

Reliance Steel & Aluminum Co. Basic Materials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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