I've been keeping an eye on Reliance Steel & Aluminum Co. (NYSE:RS) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe RS has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Reliance Steel & Aluminum here.
Excellent balance sheet established dividend payer
RS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that RS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. RS's has produced operating cash levels of 0.35x total debt over the past year, which implies that RS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
RS is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Reliance Steel & Aluminum, I've put together three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for RS’s future growth? Take a look at our free research report of analyst consensus for RS’s outlook.
- Historical Performance: What has RS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.