Russel Metals Current Valuation vs. Cash And Equivalents

RUS Stock  CAD 44.35  0.60  1.33%   
Based on Russel Metals' profitability indicators, Russel Metals is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Russel Metals' ability to earn profits and add value for shareholders. At this time, Russel Metals' Price To Sales Ratio is very stable compared to the past year. As of the 14th of December 2024, Days Sales Outstanding is likely to grow to 55.67, while EV To Sales is likely to drop 0.37. At this time, Russel Metals' Net Income Per Share is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2123
Sufficiently Up
Slightly volatile
Operating Profit Margin0.130.1243
Sufficiently Up
Slightly volatile
For Russel Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Russel Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Russel Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Russel Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Russel Metals over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Russel Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Russel Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Russel Metals' 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.

Russel Metals Cash And Equivalents vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Russel Metals's current stock value. Our valuation model uses many indicators to compare Russel Metals value to that of its competitors to determine the firm's financial worth.
Russel Metals is currently regarded number one company in current valuation category among its peers. It also is currently regarded as top stock in cash and equivalents category among its peers creating about  0.10  of Cash And Equivalents per Current Valuation. The ratio of Current Valuation to Cash And Equivalents for Russel Metals is roughly  9.88 . At this time, Russel Metals' Cash And Equivalents is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Russel Metals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Russel Metals' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Russel Current Valuation vs. Competition

Russel Metals is currently regarded number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is at this time estimated at about 42.01 Billion. Russel Metals holds roughly 2.72 Billion in current valuation claiming about 6% of equities under Industrials industry.

Russel Cash And Equivalents vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Russel Metals

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
2.72 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

Russel Metals

Cash

 = 

Bank Deposits

+

Liquidities

 = 
275.1 M
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).

Russel Cash And Equivalents Comparison

Russel Metals is currently under evaluation in cash and equivalents category among its peers.

Russel Metals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Russel Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Russel Metals will eventually generate negative long term returns. The profitability progress is the general direction of Russel Metals' change in net profit over the period of time. It can combine multiple indicators of Russel Metals, 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 Income118.7 M124.6 M
Operating Income560.2 M588.2 M
Income Before Tax348.7 M366.1 M
Total Other Income Expense Net-211.5 M-200.9 M
Net Income266.7 M280 M
Income Tax Expense82 M45.2 M
Net Income From Continuing Ops266.7 M169.7 M
Net Income Applicable To Common Shares427.7 M449.1 M
Interest Income19.9 M23.9 M
Net Interest Income-8.9 M-9.3 M
Change To Netincome-87.6 M-83.2 M
Net Income Per Share 4.33  4.55 
Income Quality 1.73  1.64 
Net Income Per E B T 0.76  0.57 

Russel Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Russel Metals. 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 Russel Metals 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 Russel Metals' important profitability drivers and their relationship over time.

Use Russel Metals 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 Russel Metals 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 Russel Metals will appreciate offsetting losses from the drop in the long position's value.

Russel Metals Pair Trading

Russel Metals Pair Trading Analysis

The ability to find closely correlated positions to Russel Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Russel Metals 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 Russel Metals - 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 Russel Metals to buy it.
The correlation of Russel Metals 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 Russel Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Russel Metals 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 Russel Metals 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 Russel Metals position

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Other Information on Investing in Russel Stock

To fully project Russel Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Russel Metals at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Russel Metals' income statement, its balance sheet, and the statement of cash flows.
Potential Russel Metals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Russel Metals investors may work on each financial statement separately, they are all related. The changes in Russel Metals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Russel Metals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.