Reliance Steel EBITDA vs. Cash And Equivalents

RS Stock  USD 269.02  4.82  1.82%   
Taking into consideration Reliance Steel's profitability measurements, Reliance Steel's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Reliance Steel's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
B
Current Value
2.1 B
Quarterly Volatility
734.3 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Reliance Steel's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 44.29 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.14 in 2024. At this time, Reliance Steel's Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 1.29 in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 724.8 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2906
Way Down
Slightly volatile
Net Profit Margin0.09470.0902
Sufficiently Up
Slightly volatile
Operating Profit Margin0.06080.1175
Way Down
Slightly volatile
Pretax Profit Margin0.120.1176
Fairly Up
Slightly volatile
Return On Assets0.130.1275
Fairly Up
Slightly volatile
Return On Equity0.10.173
Way Down
Slightly volatile
For Reliance Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reliance Steel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reliance Steel Aluminum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reliance Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reliance Steel Aluminum over time as well as its relative position and ranking within its peers.
  

Reliance Steel's Revenue Breakdown by Earning Segment

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Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Reliance Steel. If investors know Reliance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Reliance Steel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.28)
Dividend Share
4.3
Earnings Share
18.26
Revenue Per Share
248.312
Quarterly Revenue Growth
(0.06)
The market value of Reliance Steel Aluminum is measured differently than its book value, which is the value of Reliance that is recorded on the company's balance sheet. Investors also form their own opinion of Reliance Steel's value that differs from its market value or its book value, called intrinsic value, which is Reliance Steel's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Reliance Steel's market value can be influenced by many factors that don't directly affect Reliance Steel's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Reliance Steel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reliance Steel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reliance Steel's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Reliance Steel Aluminum Cash And Equivalents vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reliance Steel's current stock value. Our valuation model uses many indicators to compare Reliance Steel value to that of its competitors to determine the firm's financial worth.
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Reliance Steel Aluminum is rated below average in ebitda category among its peers. It also is rated below average in cash and equivalents category among its peers creating about  0.58  of Cash And Equivalents per EBITDA. The ratio of EBITDA to Cash And Equivalents for Reliance Steel Aluminum is roughly  1.73 . At this time, Reliance Steel's EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Reliance Steel by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Reliance Cash And Equivalents vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Reliance Steel

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
2.03 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Reliance Steel

Cash

 = 

Bank Deposits

+

Liquidities

 = 
1.17 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Reliance Cash And Equivalents Comparison

1.2B8.0T9.4B7.8B100%
Reliance Steel is currently under evaluation in cash and equivalents category among its peers.

Reliance Steel Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reliance Steel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reliance Steel will eventually generate negative long term returns. The profitability progress is the general direction of Reliance Steel's change in net profit over the period of time. It can combine multiple indicators of Reliance Steel, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-76.7 M-72.9 M
Operating Income1.7 B1.8 B
Income Before Tax1.7 B1.8 B
Total Other Income Expense Net1.2 M1.3 M
Net Income1.3 B1.4 B
Income Tax Expense400.6 M420.6 M
Net Income Applicable To Common Shares2.1 B2.2 B
Net Income From Continuing Ops1.3 B724.8 M
Non Operating Income Net Other-2.8 M-2.7 M
Interest Income35.2 M49.9 M
Net Interest Income-103.3 M-108.5 M
Change To Netincome107.3 M112.7 M
Net Income Per Share 22.90  24.05 
Income Quality 1.25  1.29 
Net Income Per E B T 0.77  0.54 

Reliance Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Reliance Steel. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Reliance Steel position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Reliance Steel's important profitability drivers and their relationship over time.

Use Reliance Steel in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Reliance Steel position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Reliance Steel will appreciate offsetting losses from the drop in the long position's value.

Reliance Steel Pair Trading

Reliance Steel Aluminum Pair Trading Analysis

The ability to find closely correlated positions to Reliance Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Reliance Steel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Reliance Steel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Reliance Steel Aluminum to buy it.
The correlation of Reliance Steel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Reliance Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Reliance Steel Aluminum moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Reliance Steel can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Reliance Steel position

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Additional Tools for Reliance Stock Analysis

When running Reliance Steel's price analysis, check to measure Reliance Steel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reliance Steel is operating at the current time. Most of Reliance Steel's value examination focuses on studying past and present price action to predict the probability of Reliance Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reliance Steel's price. Additionally, you may evaluate how the addition of Reliance Steel to your portfolios can decrease your overall portfolio volatility.

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