Reliance Steel (RS6) AI Stock Analysis

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Reliance Steel

(BX Swiss:RS6)

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Positive Factors

Diversified, value-added service modelReliance combines broad metals distribution with processing capabilities and customer-focused service, creating differentiation beyond simple material resale. This model supports repeat industrial relationships, improves product customization, and helps the company capture market share across varied end markets over multiple quarters.

Negative Factors

Weaker cash-flow conversionPositive cash generation has weakened relative to accounting earnings, reducing the amount of internally generated funding available for investment, dividends, and repurchases. If this conversion persists, it could constrain capital allocation flexibility and make earnings quality less robust through the cycle.

Reliance Steel (RS6) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 21.09B
Dividend Yield: 1.07%
Average Volume (3M): ―
Price to Earnings (P/E): 19.2
Beta (1Y): -0.08
Revenue Growth: 17.09%
EPS Growth: 47.80%
Country: Switzerland
Employees: 15,700
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

Reliance Steel Business Overview & Revenue Model

Company Description

Reliance Steel & Aluminum Co. (RS) operates as a premier diversified metal solutions provider and a leading metal service center, serving clients across the United States, Canada, and globally. The company provides an extensive inventory of approxima...

Reliance Steel Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:3.34%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call was strongly positive. Reliance reported record sales, exceptional shipment and pricing growth, a 120% year-over-year increase in non-GAAP EPS, strong demand across multiple end markets, market share gains, a robust balance sheet, and continued capital returns. The main challenges were higher LIFO expense, modest reported gross margin pressure, inflationary SG&A costs, tight supply, elevated aerospace inventories, and normal seasonal and geopolitical risks.

Positive Updates

Record Quarterly Sales and Strong Earnings

Reliance delivered record quarterly net sales, its second-highest quarterly gross profit dollars, and its third-highest quarterly earnings per share. Non-GAAP diluted EPS was $8.02, up 120% year-over-year, and exceeded the guidance range of $6.40 to $6.60.

Negative Updates

Higher-Than-Expected LIFO Expense

Third-quarter LIFO expense was $2.74 per share versus $1.10 included in guidance, creating an incremental $1.64 per share headwind. Third-quarter LIFO expense was $187.5 million versus the $75 million estimate, and the full-year LIFO expense outlook increased to $450 million from $300 million.

Company Guidance

Reliance’s full year 2026 capital expenditure outlook remains approximately $300 million, with about half allocated to strategic growth investments; full year LIFO expense outlook is $450 million, versus the prior year estimate of $300 million, with expected fourth quarter 2026 LIFO expense of $112.5 million. Fourth quarter 2026 non-GAAP earnings per diluted share are expected in the range of $7.40 to $7.60, including about $1.64 per diluted share of LIFO expense and approximately $0.70 of earnings per share from the U.S. border wall project, with fourth-quarter shipments expected to reflect generally normal seasonality and 5%-plus year-over-year growth. Phase 1 of the border wall project was $1.45 billion and is expected to be fulfilled sometime in Q2 2027, while Phase 2 was $800 million, with orders already secured for over half of that; the project should run through 2027 and could run into early 2028 if the government executes the full amount of Phase 2.

Reliance Steel Risk Analysis

Reliance Steel disclosed 25 risk factors in its most recent earnings report. Reliance Steel reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Reliance Steel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CH:RS6 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STLD	76Outperform	$34.15B	16.30	20.97%	0.94%	26.00%	79.81%
NUE	74Outperform	$60.78B	15.62	16.47%	0.91%	21.79%	121.03%
CMC	72Outperform	$7.31B	10.53	14.62%	1.25%	20.46%	658.36%
CRS	68Neutral	$14.47B	24.46	26.93%	0.29%	10.21%	38.28%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WS	51Neutral	$2.07B	-61.90	-2.72%	1.78%	69.13%	-132.01%

* Basic Materials Sector Average

Performance Comparison

CH:RS6 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:RS6	Reliance Steel & Aluminum	353.49	27.66	8.49%
CRS	Carpenter Technology Corp	278.88	-48.47	-14.81%
CMC	Commercial Metals	62.22	4.15	7.15%
NUE	Nucor	245.68	103.04	72.24%
STLD	Steel Dynamics	221.90	71.57	47.61%
WS	Worthington Steel, Inc.	35.90	4.96	16.03%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Reliance Steel AI Stock Analysis