Latest Ratios: P/E Ratio 19.3x · EV/EBITDA 12.7x · ROE 10.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $21.3B | $15.3B | $15.1B | $16.5B | $12.4B | $10.4B | $7.8B | $8.1B | $5.2B | $6.3B | $5.8B |
| Enterprise Value | $23.1B | $17.0B | $16.2B | $16.8B | $13.1B | $12.0B | $9.0B | $9.7B | $7.2B | $8.1B | $7.6B |
| P/E Ratio → | 19.33 | 20.66 | 17.30 | 12.35 | 6.77 | 7.38 | 21.16 | 11.58 | 8.13 | 10.29 | 19.12 |
| P/S Ratio | 1.23 | 1.07 | 1.09 | 1.11 | 0.73 | 0.74 | 0.89 | 0.74 | 0.45 | 0.65 | 0.68 |
| P/B Ratio | 3.07 | 2.13 | 2.09 | 2.13 | 1.75 | 1.71 | 1.53 | 1.56 | 1.10 | 1.34 | 1.39 |
| P/FCF | 43.28 | 30.40 | 15.16 | 13.73 | 7.01 | 18.54 | 7.81 | 7.67 | 12.14 | 26.58 | 12.33 |
| P/OCF | 25.61 | 18.37 | 10.59 | 9.88 | 5.88 | 13.05 | 6.66 | 6.24 | 7.76 | 15.81 | 9.28 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.19 | 1.17 | 1.13 | 0.77 | 0.85 | 1.02 | 0.89 | 0.63 | 0.83 | 0.88 |
| EV / EBITDA | 12.70 | 13.11 | 11.25 | 8.47 | 4.78 | 5.50 | 9.45 | 7.90 | 6.16 | 9.10 | 9.54 |
| EV / EBIT | 22.55 | 16.63 | 13.76 | 9.44 | 5.27 | 5.91 | 14.48 | 8.95 | 7.18 | 11.12 | 13.24 |
| EV / FCF | — | 33.93 | 16.26 | 13.97 | 7.40 | 21.33 | 8.97 | 9.20 | 17.03 | 33.93 | 16.16 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.8% | 26.8% | 27.7% | 29.1% | 29.4% | 30.2% | 29.3% | 28.3% | 26.6% | 26.4% | 27.6% |
| Operating Margin | 7.2% | 7.2% | 8.5% | 11.7% | 14.7% | 13.9% | 8.2% | 9.2% | 8.3% | 6.9% | 6.7% |
| Net Profit Margin | 5.2% | 5.2% | 6.3% | 9.0% | 10.8% | 10.0% | 4.2% | 6.4% | 5.5% | 6.3% | 3.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.3% | 10.3% | 11.7% | 18.0% | 27.9% | 25.2% | 7.1% | 14.2% | 13.5% | 13.8% | 7.5% |
| ROA | 7.3% | 7.3% | 8.5% | 12.8% | 18.5% | 16.0% | 4.5% | 8.7% | 8.0% | 8.1% | 4.2% |
| ROIC | 8.9% | 8.9% | 10.8% | 16.5% | 24.4% | 21.0% | 8.3% | 11.2% | 10.9% | 8.0% | 7.4% |
| ROCE | 11.2% | 11.2% | 12.7% | 18.7% | 28.8% | 24.5% | 9.7% | 13.7% | 13.3% | 9.7% | 9.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.20 | 0.18 | 0.26 | 0.31 | 0.36 | 0.34 | 0.47 | 0.40 | 0.46 |
| Debt / EBITDA | 1.53 | 1.53 | 0.98 | 0.69 | 0.68 | 0.86 | 1.95 | 1.45 | 1.88 | 2.15 | 2.41 |
| Net Debt / Equity | — | 0.25 | 0.15 | 0.04 | 0.10 | 0.26 | 0.23 | 0.31 | 0.44 | 0.37 | 0.43 |
| Net Debt / EBITDA | 1.36 | 1.36 | 0.76 | 0.15 | 0.25 | 0.72 | 1.23 | 1.31 | 1.77 | 1.97 | 2.26 |
| Debt / FCF | — | 3.53 | 1.10 | 0.25 | 0.39 | 2.79 | 1.17 | 1.53 | 4.89 | 7.36 | 3.83 |
| Interest Coverage | 18.40 | 18.40 | 29.29 | 44.41 | 40.01 | 13.71 | 4.36 | 6.85 | 6.44 | 5.16 | 3.93 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.88 | 4.88 | 3.21 | 5.66 | 3.55 | 3.91 | 5.08 | 4.46 | 4.70 | 4.34 | 4.10 |
| Quick Ratio | 2.30 | 2.30 | 1.54 | 3.23 | 2.10 | 1.97 | 2.76 | 2.02 | 2.10 | 1.88 | 1.76 |
| Cash Ratio | 0.26 | 0.26 | 0.26 | 1.28 | 0.85 | 0.28 | 1.12 | 0.26 | 0.18 | 0.22 | 0.19 |
| Asset Turnover | — | 1.38 | 1.38 | 1.41 | 1.65 | 1.48 | 1.09 | 1.35 | 1.43 | 1.25 | 1.16 |
| Inventory Turnover | 4.78 | 4.78 | 4.93 | 5.14 | 6.02 | 4.76 | 4.38 | 4.78 | 4.66 | 4.14 | 4.07 |
| Days Sales Outstanding | — | 39.32 | 37.00 | 37.18 | 34.35 | 43.59 | 38.46 | 36.75 | 39.81 | 40.93 | 40.69 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.7% | 1.6% | 1.4% | 1.7% | 1.7% | 2.1% | 1.9% | 2.8% | 2.1% | 2.1% |
| Payout Ratio | 34.4% | 34.4% | 28.5% | 17.8% | 11.8% | 12.5% | 44.5% | 21.6% | 22.9% | 21.5% | 39.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 4.8% | 5.8% | 8.1% | 14.8% | 13.5% | 4.7% | 8.6% | 12.3% | 9.7% | 5.2% |
| FCF Yield | 2.3% | 3.3% | 6.6% | 7.3% | 14.3% | 5.4% | 12.8% | 13.0% | 8.2% | 3.8% | 8.1% |
| Buyback Yield | 2.8% | 3.9% | 7.2% | 2.9% | 5.1% | 3.1% | 4.3% | 0.6% | 9.4% | 0.4% | 0.0% |
| Total Shareholder Yield | 3.9% | 5.6% | 8.9% | 4.3% | 6.8% | 4.8% | 6.4% | 2.5% | 12.2% | 2.5% | 2.1% |
| Shares Outstanding | — | $53M | $56M | $59M | $61M | $64M | $65M | $68M | $72M | $74M | $73M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RS stock.
Reliance Steel & Aluminum Co.'s current P/E ratio is 19.3x. The historical average is 13.7x. This places it at the 77th percentile of its historical range.
Reliance Steel & Aluminum Co.'s current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
Reliance Steel & Aluminum Co.'s return on equity (ROE) is 10.3%. The historical average is 13.9%.
Based on historical data, Reliance Steel & Aluminum Co. is trading at a P/E of 19.3x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Reliance Steel & Aluminum Co.'s current dividend yield is 1.16% with a payout ratio of 34.4%.
Reliance Steel & Aluminum Co. has 26.8% gross margin and 7.2% operating margin.
Reliance Steel & Aluminum Co.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
LIFO-flattered cyclical margin compression
Metrics are mathematically derived from official filings.
Processing Spread Lifts Every Margin Layer
Operating margin nearly doubled from 5.0% in 2025Q4 to 10.6% in 2026Q3 while net margin expanded to 7.7%, according to Reliance Steel's reported quarterly figures, though LIFO inventory reserves may be inflating reported profitability during this rising-price environment.
Gross margin has held in a tight 25.3%-28.3% band across all ten quarters while operating margin swung from 5.0% to 10.6%, which suggests the improvement is operating leverage on the SG&A line rather than a structural widening of the gross spread — consistent with the prior income statement finding of SG&A falling from 19.4% to 16.0% of sales. Net margin at 7.7% appears strong against the 1.2%-1.4% reported by service-center peers ZEUS and CMC, but analysts should treat this as period earnings rather than replacement-cost earning power, since rising metal prices can lift both the top line and the LIFO reserve benefit simultaneously. The 2.6% free cash flow margin in the same quarter sits well below the 7.7% net margin, so the reported profit conversion to cash remains the metric that warrants monitoring.
Returns Recovering, Not Yet Compounding
Quarterly ROIC improved from 1.4% in 2024Q4 to 4.4% in 2026Q3, driven equally by operating margin expansion to 10.6% and asset turnover rising to 0.46, as Reliance's disclosed figures show returns recovering rather than structurally re-based.
The gap between ROIC and ROE — 4.4% versus 5.3% in 2026Q3 — remains modest despite 0.25 debt-to-equity, implying that modest leverage is not meaningfully amplifying equity returns, and the return picture is therefore driven predominantly by margin rather than capital structure. Judged against the peer table, Reliance's returns sit below SSD (15.9% ROIC), MSM (12.3%) and STLD (9.2%) but above ZEUS (4.3%), which suggests its decentralized service model earns a mid-pack return on capital that has historically been defended rather than compounded. Because the asset base grew 16% while equity grew only 7% over the window, sustained ROIC above 4% will depend on the recently acquired working capital continuing to turn over at the higher 0.46 rate rather than reverting to the 0.31 seen in 2024Q4.
Working Capital Tightens on Price, Not Terms
Cash conversion cycle tightened from 112 days in 2024Q4 to 85 days in 2026Q3, entirely on inventory days falling from 84 to 59 while payables held near 16 days, based on Reliance's disclosed working-capital metrics, indicating pricing rather than supplier leverage drove the gain.
Receivables days have been remarkably stable at 39-44 throughout, which points to disciplined collection rather than loosened terms to chase the 42.8% revenue growth, while DPO flat at 16-18 days indicates Reliance is not extracting supplier float to fund the inventory build — a conservative signal given peers often stretch payables through cycles. The DIO decline from 84 to 59 days should be read cautiously: inventory dollars actually rose materially enough to absorb $742M of operating cash across 2026Q1-2026Q3, so the improvement appears largely denominator-driven by higher ASPs rather than genuine physical velocity. Investors should monitor whether DIO stabilizes as metal prices normalize, because a reversal would quickly unwind the CCC improvement without any change in underlying demand.
Comfortable Serviceability With Creeping Borrowing
Interest coverage recovered from 10.99x in 2025Q4 to 29.91x in 2026Q3 as EBITDA rebounded, yet debt-to-equity crept from 0.18 to 0.25 over ten quarters, Reliance Steel's reported balance sheet indicates comfortable serviceability alongside a deliberate shift toward incremental borrowing.
The D/EBITDA ratio's fall from 8.11x to 3.16x over the same span is almost entirely denominator-driven — EBITDA expansion rather than deleveraging — since total debt actually rose 43% to roughly $2.0B, so the apparent deleveraging should not be extrapolated as a balance sheet trend. Even at 0.25 debt-to-equity, Reliance remains the least-levered name in the comp set versus ZEUS (0.55), STLD (0.47), MSM (0.39) and CMC (0.32), which suggests meaningful covenant and refinancing headroom should cyclical volumes soften. The key sensitivity is that coverage of 29.91x rests on a margin (10.6% operating) that has cycled between 4.9% and 10.6% within two years; a reversion to the trough level would compress coverage sharply even at today's debt load.
Forward Multiple Bakes In Margin Hold
Reliance trades at a 29.73x trailing P/E versus 24.29x at Olympic Steel and 22.37x at Simpson, yet the 16.51x forward multiple implies consensus embeds a sharp earnings recovery, market pricing data suggests the valuation hinges on margins holding near 10% operating.
The gap between trailing P/E (29.73) and forward P/E (16.51) implies the market is pricing roughly 80% earnings growth, which looks aggressive against a business whose operating margin has only recently recovered to the top of its own ten-quarter range and whose revenue growth was partly price-driven. P/FCF at 42.23x versus forward P/E of 16.51x is the more telling divergence, flagging that the free cash flow the valuation ultimately rests on has not yet followed reported earnings — a point reinforced by the FCF margin slide from 11.6% to 2.6%. Relative to peers, the 3.06x P/B sits below SSD (3.80x), MSM (4.56x) and STLD (4.01x) but far above ZEUS (0.97x), a premium that appears justified by Reliance's higher and more stable ROIC, though the 29% of equity represented by static goodwill adds impairment sensitivity to that book-based view.
P/E Misreads LIFO-Distorted Earnings
The P/E ratio is most routinely misapplied to Reliance because LIFO reserve swings within cost of sales distort reported net income, making the 29.73x trailing multiple non-comparable to FIFO-reporting peers; analysts should instead use LIFO-adjusted EV/EBITDA and gross profit per ton.
Because Reliance carries LIFO inventory accounting while several comparators and much of the mill peer set report on FIFO, headline net income — and therefore P/E — can diverge materially from replacement-cost economic profit, flattering the multiple in falling-price periods and depressing it in rising ones, as appears to be happening amid the current pricing cycle. This matters more for Reliance than for a typical industrial because metal cost is the dominant expense line, so small price moves translate into outsized reserve effects flowing through cost of sales. A better framing is the LIFO-adjusted EV/EBITDA alongside gross profit per ton and value-added percentage of sales, which isolate the service spread that arguably defines the business rather than the commodity price cycle the market frequently mistakes it for.