Reuters
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Los Angeles-based Reliance Steel & Aluminum Co. has a network of metals service centers operating in the United States and in 10 other countries (Australia, Belgium, Canada, China, Malaysia, Mexico, Singapore, South Korea, the United Arab Emirates and the United Kingdom). Through this network, it provides metals processing services and distributes a full line of over 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products. It has a $4.7-billion (U.S.) market cap.
Reliance has grown earnings at a 12-per-cent pace over the long term (based on the average of the 3, 4 and 5 year historical EPS growth rates, which makes it a steady "stalwart", according to the Peter Lynch based model.
The company trades for just 12.8 times earnings. It has a 2.6-per-cent dividend and it gets strong interest from the Lynch model, in part because of its 0.88 yield-adjusted PE-to-growth ratio.
Reliance has a reasonable 57-per-cent debt/equity ratio. It grew EPS at a 49-per-cent clip last quarter, which the Martin Zweig -based model likes.
It has a 0.45 price/sales ratio and a 4.7 current ratio, a sign of good liquidity, according to the Benjamin Graham-based model. It has more net current assets ($2.5-billion) than long-term debt ($2.2-billion), another reason the Graham model has strong interest.
John Reese is long RS.
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