Company Overview
Reliance, Inc. functions as a diversified metal solutions provider and metals service center company that primarily serves markets in the United States and Canada. The organization distributes a comprehensive array of metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and various other specialty steel products. Operating within the Basic Materials sector and the Steel industry, the company positions itself to meet diverse industrial demands for raw and processed metals. With a market capitalization of $15.66B and annual revenue of $14.29B, Reliance, Inc. demonstrates significant scale in the metals distribution landscape. The presence of 15,700 employees further underscores the company's substantial operational footprint, indicating a large-scale organization capable of managing complex supply chains. These valuation and revenue figures collectively suggest that Reliance, Inc. maintains a prominent position within its specific industry, reflecting a mature business model supported by extensive human resources and significant market capitalization.
Financial Health
The company reported revenue of $14.29B over the trailing twelve months, generating net income of $739.40M and EBITDA of $1.33B. The substantial gap between the total revenue of $14.29B and the net income of $739.40M reveals a cost structure where operational expenses, including cost of goods sold and selling expenses, consume a significant portion of top-line growth. Free cash flow stands at $305.60M, which indicates that the company generates positive cash flow after capital expenditures, providing a degree of financial flexibility for operations or strategic initiatives. The company maintains a cash balance of $216.60M against total debt of $1.74B, while the debt-to-equity ratio is recorded at 24.23, suggesting a leveraged balance sheet where debt obligations exceed equity capitalization. Despite the leverage, the current ratio of 4.88 indicates robust short-term liquidity, as current assets are nearly five times the value of current liabilities. Return on equity is 10.3% and return on assets is 6.4%, metrics that reveal how effectively management utilizes shareholder equity and total assets to generate profit. The return on equity of 10.3% specifically highlights the profitability relative to the capital invested by shareholders, while the return on assets of 6.4% demonstrates the efficiency of asset deployment across the entire enterprise.
Valuation Assessment
The trailing twelve-month P/E ratio is 21.41, while the forward P/E ratio is 15.68, implying that the market expects earnings growth that will lower the valuation multiple in the future. The price-to-book ratio is 2.16, which indicates that the market values the company at a premium above its net book value, reflecting confidence in its intangible assets or future earnings potential. Alternative valuation metrics include a price-to-sales ratio of 1.10 and an EV/EBITDA of 12.85, suggesting that the company is priced reasonably relative to its sales volume and enterprise earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $365.59 and a 52-week low of $250.07, providing a historical range for assessing current valuation relative to recent price action. The beta value is 0.88, which means the stock's price volatility is lower than the broader market, suggesting a defensive characteristic relative to the overall market index.
Growth & Income
Revenue growth over the last year was 11.9%, while earnings growth reached 15.1%, indicating that earnings are expanding at a faster rate than revenue. This divergence implies improved operational efficiency or margin expansion as the company scales its revenue base. The company offers a dividend yield of 1.7% with a payout ratio of 34.3%, suggesting that the dividend is well-covered by earnings and appears sustainable given the current profit margins. With a payout ratio of 34.3%, the company retains the majority of its earnings for reinvestment rather than distributing them entirely to shareholders, balancing income generation with growth funding. The overall growth and income profile combines steady single-digit to low double-digit revenue expansion with accelerating earnings growth and a modest but sustainable dividend yield, offering a balanced approach for income-focused and growth-oriented investors.