RS Stock Analysis — Reliance Steel & Aluminum Co.
Sector: Industrials
AI Verdict
RS trades at 19.4x next year's earnings for 33.8% growth, which is cheap for the growth you're getting if its distribution network keeps customer loyalty high.
Competitive Moat
Reliance Steel & Aluminum is the largest metals service center company in North America, with a vast distribution network and inventory scale that allow it to offer just-in-time delivery and custom processing to thousands of industrial customers. Its moat comes from logistical reach and customer relationships that create switching costs for manufacturers who rely on reliable supply and tailored services.
Summary
Reliance Steel is notable for its expected 33.8% EPS growth next year while trading at a forward P/E of 19.4x.
Where It Stands
RS trades at 19.4x next year's earnings, a premium to the 20x industrials median, but with analyst consensus calling for 33.8% EPS growth and an RSI-neutral 56.
Key Metrics
- Trailing P/E: 26.0x
- Forward P/E: 19.4x
- PEG Ratio: 0.79
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $419.83
- 52-Week Low: $260.31
Analyst Consensus
9 Buy · 8 Hold · 1 Sell (18 analysts)
Bull Case
With a trailing PEG of 0.79 and forward EPS growth of 33.8%, you're getting growth at a price that the numbers justify.
Bear Case
If the forward P/E compresses from 19.4x to the sector median of 20x as growth slows, the stock could see limited multiple expansion and stall out.
Catalyst to Watch
Watch for quarterly earnings reports confirming that the 33.8% EPS growth materializes, as any miss could quickly deflate the premium.