Reliance Steel & Aluminum Co. (DE) (RS) Company Bio
Reliance Steel provides metals processing services and distributes a line of numerous metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products. The company was founded in 1939 and is based in Los Angeles, California.
RS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Reliance Steel & Aluminum Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Reliance Steel & Aluminum Co ranked in the 78th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for RS, they are:
As a business, RS is generating more cash flow than 83.71% of positive cash flow stocks in the Basic Materials.
Reliance Steel & Aluminum Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.1% of tickers in our DCF set.
RS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 17.1% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RS, try SUM, SBSW, ODC, WMS, and PATK.
− Karla Lewis appointed to Board of Directors and promoted to President− Arthur Ajemyan promoted to Vice President, Chief Financial Officer− David Hannah retiring from Board of Directors at 2021 Annual Meeting of Stockholders LOS ANGELES, Jan. 18, 2021 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE: RS) announced today that Karla R. Lewis has been promoted to President and appointed to the Company’s Board of Directors consistent with the Board’s executive leadership succession plan. Mark Kaminski, Chairman of the Board of Reliance, commented, “The promotion of Karla Lewis to President as well as her appointment to the Board marks another important step in the Reliance Board of Directors’ strategic, deliberate and well-executed long-term succession plan. Karla has been at the ce...