Reliance Steel & Aluminum Co. (RS) AI Stock Analysis

Reliance Steel & Aluminum Co. operates as a provider of diversified metal solutions across approximately 315 locations in the United States, Canada, and international markets. The company distributes around 100,000 metal items, such as alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel. It offers metals processing services supporting non-residential construction, semiconductor fabrication, aerospace, energy, electronics, transportation, and general manufacturing. Reliance also distributes non-ferrous metals and tubular building products, while manufacturing specialty extruded metals, fabricated parts, and welded components for original equipment manufacturers, fabricators, and small machine shops.

Revenue grew from $14.09B in FY2021 to a peak of $17.02B in FY2022, before dropping to $14.81B in FY2023 and $13.84B in FY2024. In FY2025, revenue rose 3.3% to $14.29B, achieving a 5-year revenue CAGR of 10.2% from FY2020. Gross margin declined across the period from 30.2% in FY2021 to 26.8% in FY2025, while operating margin fell from 13.9% to 7.2%. Net income was $739.4M with EPS of $14.24 in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue growth accelerated to 26.5% year-over-year, and quarterly earnings grew 42.3%. TTM revenue reached $15.81B with a profit margin of 5.7%.

As of June 30, 2026, Reliance held $235.4M in cash and short-term investments alongside total debt of $2.00B, resulting in net debt of $1.76B. Shareholders' equity was $7.40B, with total assets of $11.17B, a current ratio of 4.30, and a debt-to-equity ratio of 0.27. In FY2025, the company generated operating cash flow of $831.4M and free cash flow of $502.5M. Capital expenditures totaled $328.9M, while capital returns included $594.1M in share buybacks and $254.7M in dividends paid, contributing to an 18.6% reduction in share count over 5 years.

At a market capitalization of $20.99B and an enterprise value of $21.40B, Reliance trades at a trailing P/E of 23.9x and a forward P/E of 16.4x, both above the median of its US-listed Basic Materials peers at 19.7x and 13.4x, respectively. Its EV/EBITDA of 13.4x also exceeds the peer median of 10.5x, though its price-to-sales of 1.3x trades below the peer median of 1.8x. Over the past year, the stock returned 55.0% compared to 16.8% for the S&P 500 (SPY), and its 5-year return of 201.7% outperformed SPY's 83.0%.

Reliance pays a quarterly dividend with an annualized forward payout of $5.00, yielding 1.22% as of October 16, 2026. The dividend has been paid for 33 consecutive years and achieved a 5-year annualized dividend growth rate of 13.9%. The payout ratio stands at 28.3%, and the most recent ex-dividend date was August 14, 2026.

Wall Street analysts track Reliance with 2 Strong Buy, 0 Buy, 6 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target is $412.11, representing a 0.2% premium to the last close of $411.17. For FY2026, consensus estimates project revenue of $17.82B and EPS of $24.12, reflecting expected EPS growth of 69.1%. Reliance beat EPS estimates in 2 of the last 4 quarters. The next earnings release is scheduled for October 21, 2026.

This page is an AI-written research summary of Reliance Steel & Aluminum Co. (RS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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