Upside case
Bull case
$1372+268.7%
RS would need investors to value it at roughly 70x earnings — about 51x more generous than today's 19x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Reliance Steel & Aluminum Co. (RS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
27
analysts
9 bullish · 2 bearish · 27 covering RS
Strong Buy
0
Buy
9
Hold
16
Sell
2
Strong Sell
0
Consensus Target
$362
-2.7% vs today
Scenario Range
$318 – $1372
Model bear to bull value window
Coverage
27
Published analyst ratings
Valuation Context
19.1x
Forward P/E · Market cap $19.0B
RS price targets
Three scenarios for where RS stock could go
Current
~$372
Confidence
48 / 100
Updated
May 1, 2026
Where we are now
Current · $372
Bear
$318
Base
$526
Bull
$1372
Market caseClosest to today
Base case
$526+41.5%
At 27x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$318-14.5%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push RS down roughly 14% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Reliance Steel & Aluminum Co.
RS · NYSEBasic MaterialsSteelDecember year-end
Reliance Steel & Aluminum is a diversified metals service center that distributes approximately 100,000 metal products — including carbon steel, aluminum, stainless steel, and specialty alloys — and provides value-added processing services. It generates revenue primarily through metal sales (roughly 90% of total) and processing fees (about 10%), serving diverse end markets like manufacturing, construction, aerospace, and energy. The company's competitive advantage lies in its extensive North American distribution network — over 300 locations — which provides local market access and just-in-time delivery capabilities that smaller competitors cannot match.
Market Cap
$19.0B
Revenue TTM
$14.8B
Net Income TTM
$806M
Net Margin
5.4%
RS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
25%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
-1.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 1 of 4Q3 2025
EPS
$4.43/$4.68
Revenue
$3.7B/$3.7B
Q4 2025
EPS
$3.64/$3.68
Revenue
$3.7B/$3.4B
Q1 2026
EPS
$2.40/$2.83
Revenue
$3.5B/$3.4B
Q2 2026
EPS
$5.16/$4.63
Revenue
$4.0B/$3.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $4.43/$4.68 | -5.3% | $3.7B/$3.7B | +0.0% |
| Q4 2025 | $3.64/$3.68 | -1.1% | $3.7B/$3.4B | +6.0% |
| Q1 2026 | $2.40/$2.83 | -15.2% | $3.5B/$3.4B | +1.5% |
| Q2 2026 | $5.16/$4.63 | +11.4% | $4.0B/$3.9B | +3.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$15.3B
+3.0% YoY
FY2
$15.5B
+1.6% YoY
EPS Outlook
FY1
$17.99
+16.0% YoY
FY2
$19.77
+9.9% YoY
Trailing FCF (TTM)$612M
FCF Margin: 4.1%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
RS beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
RS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $12.6B
Product Mix
Latest annual revenue by segment or product family
Carbon steel
62.6%
+4.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Carbon steel is the largest disclosed segment at 62.6% of FY 2025 revenue, up 4.3% YoY.
RS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Overvalued
Fair value est. $313 — implies -14.3% from today's price.
Premium to Fair Value
14.3%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RS
26.6x
vs
S&P 500
25.1x
+6% premium
vs Basic Materials Trailing P/E
RS
26.6x
vs
Basic Materials
22.3x
+20% premium
vs RS 5Y Avg P/E
Today
26.6x
vs
5Y Average
12.9x
+106% premium
Forward PE
19.1x
S&P 500
19.1x
+0%
Basic Materials
15.2x
+25%
5Y Avg
—
—
Trailing PE
26.6x
S&P 500
25.1x
+6%
Basic Materials
22.3x
+20%
5Y Avg
12.9x
+106%
PEG Ratio
1.34x
S&P 500
1.72x
-22%
Basic Materials
1.17x
+14%
5Y Avg
—
—
EV/EBITDA
16.0x
S&P 500
15.2x
+5%
Basic Materials
11.0x
+46%
5Y Avg
8.6x
+85%
Price/FCF
37.8x
S&P 500
21.1x
+79%
Basic Materials
25.6x
+48%
5Y Avg
17.0x
+123%
Price/Sales
1.3x
S&P 500
3.1x
-57%
Basic Materials
1.9x
-30%
5Y Avg
0.9x
+40%
Dividend Yield
1.29%
S&P 500
1.87%
-31%
Basic Materials
1.32%
-2%
5Y Avg
1.64%
-21%
| Metric | RS | S&P 500 | Basic Materials | 5Y Avg RS |
|---|---|---|---|---|
| Forward PE | 19.1x | 19.1x | 15.2x+25% | — |
| Trailing PE | 26.6x | 25.1x | 22.3x+20% | 12.9x+106% |
| PEG Ratio | 1.34x | 1.72x-22% | 1.17x+14% | — |
| EV/EBITDA | 16.0x | 15.2x | 11.0x+46% | 8.6x+85% |
| Price/FCF | 37.8x | 21.1x+79% | 25.6x+48% | 17.0x+123% |
| Price/Sales | 1.3x | 3.1x-57% | 1.9x-30% | 0.9x+40% |
| Dividend Yield | 1.29% | 1.87% | 1.32% | 1.64% |
RS trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolRS Financial Health
Verdict
Adequate
RS returns 4.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$14.8B
Revenue Growth
TTM vs prior year
+8.5%
Gross Margin
Gross profit as a share of revenue
27.2%
Operating Margin
Operating income divided by revenue
7.5%
Net Margin
Net income divided by revenue
5.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$15.51
Free Cash Flow (TTM)
Cash generation after capex
$612M
FCF Margin
FCF as share of revenue — the primary cash quality signal
4.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
8.9%
ROA
Return on assets, trailing twelve months
7.6%
Cash & Equivalents
Liquid assets on the balance sheet
$217M
Net Debt
Total debt minus cash
$1.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.9× FCF
~2.9 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
11.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.4%
Dividend
1.3%
Buyback
3.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$594M
Dividend / Share
Annualized trailing dividend per share
$4.82
Payout Ratio
Share of earnings distributed as dividends
34.4%
Shares Outstanding
Declining as buybacks retire shares
51M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageRS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Economic Downturns
RS Group plc is vulnerable to economic cycles, with a reported 1% revenue decline for the fiscal year ending March 31, 2025, due to a challenging market backdrop and soft business confidence in EMEA. Such downturns can significantly impact volumes and margins.
High Risk
Lack of Financial Data
RS Group's lack of provided financial data makes fundamental analysis impossible, leading to a speculative and high-risk assessment of its financial foundation. This uncertainty can deter potential investors and affect stock valuation.
High Risk
Debt Levels
RS Group has a net debt of approximately £279.4 million as of September 2025, with declining EBIT. While the company has managed its debt reasonably well, the balance sheet remains a critical area to monitor for potential financial strain.
Medium
Pricing Pressures
Both RS Group and Reliance Inc. face pricing pressures in their respective industries. RS Group operates in a competitive environment where pricing is a critical differentiator, potentially impacting profit margins.
Medium
Inventory Management
Efficient inventory management is crucial for RS Group, as inventory represents a significant investment and risk. The lack of data on inventory turns complicates the assessment of operational effectiveness.
Lower
Supply Chain Volatility
The electronic component distribution industry, relevant to RS Group, is subject to supply chain volatility. Disruptions in the supply chain can affect product availability and operational efficiency.
Lower
Regulatory Compliance
RS Group faces risks of non-compliance with laws and regulations, particularly concerning tax regulations and ethical business practices. Such compliance issues can lead to legal penalties and reputational damage.
Lower
External Factors
External factors, such as the COVID-19 pandemic, can adversely affect market demand and pricing. These unpredictable events can create additional volatility in the stock's performance.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why RS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance
RS Group plc has demonstrated robust financial performance, with a trailing twelve months (TTM) revenue of £5.7 billion and a net income of £83 million in the most recent quarter. The company maintains a healthy operating income margin of 8.7%, indicating effective cost management and profitability.
Diverse Product Portfolio
RS Group plc is a leading distributor of electronics and industrial products, operating globally and serving diverse industries. The company's strong presence in industrial sectors and diverse product offerings are seen as key drivers for future growth.
Commitment to Shareholder Returns
RS Group plc offers a dividend yield of 3.67%, reflecting a commitment to returning value to shareholders. The dividend payout ratio is at a healthy, sustainable level of 66.27%, with expectations for an increase in the upcoming fiscal year.
Strategic Growth Initiatives
RS Group is committed to delivering a lean and sustainable business, making strategic investments to support ongoing market share growth. The recent acquisition of BPX Group is a strategic move aimed at enhancing the company's market position.
Positive Growth Outlook
Despite a slight revenue decrease of 1.32% in FY2025, RS Group is positioned for accelerated delivery and aims to grow ahead of the market. Analysts have a consensus rating of 'Moderate Buy', indicating optimism about the company's future performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
RS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$372.04
52W Range Position
98%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$260.31
+42.9% from the low
52-Week High
$373.77
-0.5% from the high
1 Month
+21.54%
3 Month
+8.70%
YTD
+25.8%
1 Year
+26.1%
3Y CAGR
+15.2%
5Y CAGR
+16.8%
10Y CAGR
+17.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
RS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
19.1x
vs 20.7x median
-8% below peer median
Revenue Growth
+3.0%
vs +2.4% median
+25% above peer median
Net Margin
5.4%
vs 5.5% median
-1% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RS RS Reliance Steel & Aluminum Co. | $19.0B | 19.1x | +3.0% | 5.4% | Hold | -2.7% |
SSD SSD Simpson Manufacturing Co., Inc. | $7.9B | 21.0x | +5.3% | 14.9% | Buy | +12.9% |
STL STLD Steel Dynamics, Inc. | $34.4B | 15.9x | +6.0% | 7.2% | Buy | -20.7% |
CMC CMC Commercial Metals Company | $7.7B | 10.7x | +2.4% | 5.5% | Buy | +18.6% |
ZEU ZEUS Olympic Steel, Inc. | $533M | 20.7x | -4.4% | 0.7% | Buy | -14.3% |
MSM MSM MSC Industrial Direct Co., Inc. | $5.7B | 23.7x | +1.2% | 5.4% | Hold | -5.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
RS Dividend and Capital Return
RS returns capital mainly through $594M/year in buybacks (3.1% buyback yield), with a modest 1.29% dividend — combining for 4.4% total shareholder yield. The dividend has grown for 23 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
4.4%
Dividend + buyback return per year
Buyback Yield
3.1%
Dividend Yield
1.29%
Payout Ratio
34.4%
How RS Splits Its Return
Div 1.29%
Buyback 3.1%
Dividend 1.29%Buybacks 3.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$4.82
Growth Streak
Consecutive years of dividend increases
23Y
3Y Div CAGR
11.1%
5Y Div CAGR
13.9%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$594M
Estimated Shares Retired
2M
Approx. Share Reduction
3.1%
Shares Outstanding
Current diluted share count from the screening snapshot
51M
At 3.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $2.50 | — | — | — |
| 2025 | $4.80 | +9.1% | 3.9% | 5.6% |
| 2024 | $4.40 | +10.0% | 7.2% | 8.9% |
| 2023 | $4.00 | +14.3% | 2.9% | 4.3% |
| 2022 | $3.50 | +27.3% | 5.1% | 6.8% |
FAQ
7 questionsRS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Reliance Steel & Aluminum Co. (RS) stock a buy or sell in 2026?
Reliance Steel & Aluminum Co. (RS) is rated Hold by Wall Street analysts as of 2026. Of 27 analysts covering the stock, 9 rate it Buy or Strong Buy, 16 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $362, implying -2.7% from the current price of $372. The bear case scenario is $318 and the bull case is $1372.
02What is the RS stock price target for 2026?
The Wall Street consensus price target for RS is $362 based on 27 analyst estimates. The high-end target is $390 (+4.8% from today), and the low-end target is $330 (-11.3%). The base case model target is $526.
03Is Reliance Steel & Aluminum Co. (RS) stock overvalued in 2026?
RS trades at 19.1x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals slightly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Reliance Steel & Aluminum Co. (RS) stock in 2026?
The primary risks for RS in 2026 are: (1) Economic Downturns — RS Group plc is vulnerable to economic cycles, with a reported 1% revenue decline for the fiscal year ending March 31, 2025, due to a challenging market backdrop and soft business confidence in EMEA. (2) Lack of Financial Data — RS Group's lack of provided financial data makes fundamental analysis impossible, leading to a speculative and high-risk assessment of its financial foundation. (3) Debt Levels — RS Group has a net debt of approximately £279. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Reliance Steel & Aluminum Co.'s revenue and earnings forecast?
Analyst consensus estimates RS will report consensus revenue of $15.3B (+3.0% year-over-year) and EPS of $17.99 (+16.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $15.5B in revenue.
06When does Reliance Steel & Aluminum Co. (RS) report its next earnings?
A confirmed upcoming earnings date for RS is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Reliance Steel & Aluminum Co. generate?
Reliance Steel & Aluminum Co. (RS) generated $612M in free cash flow over the trailing twelve months — a free cash flow margin of 4.1%. RS returns capital to shareholders through dividends (1.3% yield) and share repurchases ($594M TTM).