Reliance Steel & Aluminum Co. (RS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-37.2%

$282.61

vs $449.85 price

Levered DCF

$223.77

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

6.73

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.53×	17.15×	12.21×	6.66×	7.26×	20.86×	11.42×	8.04×
P/B	2.12×	2.08×	2.11×	1.73×	1.68×	1.51×	1.54×	1.09×
P/S	1.06×	1.08×	1.1×	0.72×	0.73×	0.87×	0.73×	0.44×
EV / EBITDA	13.01×	11.12×	8.2×	4.74×	5.23×	10.46×	7.36×	5.87×
Gross margin	26.8%	27.7%	29.1%	29.4%	30.2%	29.3%	28.3%	26.6%
Operating margin	7.2%	8.5%	11.7%	14.7%	13.9%	8.2%	9.2%	8.3%
Net margin	5.2%	6.3%	9.0%	10.8%	10.0%	4.2%	6.4%	5.5%
Current ratio	4.88×	3.21×	5.66×	3.55×	3.91×	5.08×	4.46×	4.7×
Debt / equity	0.28×	0.2×	0.18×	0.26×	0.31×	0.36×	0.34×	0.47×
Interest coverage	18.36×	29.18×	43.38×	40.26×	13.18×	5.09×	6.38×	6.13×
Dividend yield	1.7%	1.7%	1.5%	1.8%	1.7%	2.1%	1.9%	2.9%
Payout ratio	34.4%	28.5%	17.8%	11.8%	12.5%	44.5%	21.6%	22.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.3%	12.1%	17.3%	26.0%	23.2%	7.2%	13.5%	13.6%
Return on invested capital	8.2%	9.8%	13.8%	20.0%	17.2%	7.5%	10.2%	9.8%
Return on assets	7.1%	8.7%	12.7%	17.8%	14.8%	4.6%	8.6%	7.9%
Free cash flow yield	3.3%	6.7%	7.4%	14.5%	5.5%	13.0%	13.2%	8.3%
Earnings yield	4.9%	5.8%	8.2%	15.0%	13.8%	4.8%	8.8%	12.4%
Enterprise value	$17B	$16.1B	$16.6B	$13B	$11.8B	$8.9B	$9.6B	$7.2B
Net debt / EBITDA	1.36×	0.76×	0.15×	0.25×	0.69×	1.38×	1.24×	1.7×
Cash conversion cycle (days)	103	98	94	82	103	107	100	104