Reliance (MEX:RS) Debt-to-EBITDA : 0.96 (As of Jun. 2026) — 26% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MEX:RS Reliance Inc MEX:RS
89 GF Score
Price MXN5,529.80
GF Value MXN4,891.08
! 8 Warning Signs
View Full Analysis

What is Reliance Debt-to-EBITDA?

Reliance MEX:RS 89 Debt-to-EBITDA is 0.96 as of Jun. 2026, which is 26% below its 10-year median of 1.30. GuruFocus rates MEX:RS with a GF Score™ of 89/100 and a GF Value™ of MXN4,891.08. The stock has 8 warning signs investors should review. Among 495 Steel companies, Reliance ranks better than 74.34% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Reliance's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was MXN1,174 Mil. Reliance's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was MXN33,640 Mil. Reliance's annualized EBITDA for the quarter that ended in Jun. 2026 was MXN36,119 Mil. Reliance's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 0.96.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Reliance's Debt-to-EBITDA or its related term are showing as below:

MEX:RS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.65   Med: 1.3   Max: 2.42
Current: 1.22

During the past 13 years, the highest Debt-to-EBITDA Ratio of Reliance was 2.42. The lowest was 0.65. And the median was 1.30.

MEX:RS's Debt-to-EBITDA is ranked better than
74.34% of 495 companies
in the Steel industry
Industry Median: 2.87 vs MEX:RS: 1.22

Reliance  (MEX:RS) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Reliance Debt-to-EBITDA Related Terms


Reliance Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Reliance's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Reliance Debt-to-EBITDA Chart

Reliance Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.83 0.66 0.65 0.91 1.23

Reliance Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.12 1.27 1.25 1.17 0.96

MEX:RS vs TX, CLF, STLD: Debt-to-EBITDA Comparison

For the Steel subindustry, Reliance's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reliance Debt-to-EBITDA vs Steel Industry

For the Steel industry and Basic Materials sector, Reliance's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Reliance's Debt-to-EBITDA falls into.


MEX:RS
89GF Score
Reliance Inc MEX:RS
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Reliance Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Reliance's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1231.59 + 30089.325) / 25431.251
=1.23

Reliance's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1174.318 + 33639.927) / 36119.428
=0.96

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.96 mean?
Reliance (MEX:RS) has a Debt-to-EBITDA of 0.96 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Reliance. This is 26% below median its historical median of 1.30. Over the past decade, Reliance's Debt-to-EBITDA has ranged from 0.65 to 2.42. According to the industry distribution chart, Reliance ranks #127 out of 495 companies in the Steel industry, placing it in the top 25.7%.
Is Reliance's Debt-to-EBITDA too high?
Reliance's current Debt-to-EBITDA of 0.96 is 26% below median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 2.42. The Steel industry median Debt-to-EBITDA is 2.87. Reliance's value of 0.96 is 66.6% below this industry median. Based on the distribution chart, Reliance ranks #127 out of 495 companies in the Steel industry, which is above the industry midpoint. Overall, Reliance has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Reliance's Debt-to-EBITDA compare to TX and CLF?
According to the Steel industry distribution chart, Reliance ranks #127 out of 495 companies for Debt-to-EBITDA. This puts Reliance in the upper half of its industry. The industry median Debt-to-EBITDA is 2.87. Reliance's value of 0.96 is 66.6% below this benchmark. Historically, Reliance's own Debt-to-EBITDA has ranged from 0.65 to 2.42 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 2.87, Reliance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Steel company?
The median Debt-to-EBITDA among Steel companies is 2.87, based on 495 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reliance's current Debt-to-EBITDA of 0.96 is 66.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Reliance. For the Steel industry, the median Debt-to-EBITDA is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance's current Debt-to-EBITDA is 0.96, which is 26% below median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance stock overvalued right now?
Reliance (MEX:RS) has a current Debt-to-EBITDA of 0.96. The stock's GF Value™ is MXN4,891.08, compared to a current price of MXN5,529.80 — trading 13.1% above its estimated fair value. The current Debt-to-EBITDA is 0.96, which is 26% below median its 10-year median of 1.30 and 66.6% below the Steel industry median of 2.87. Reliance's overall GF Score™ is 89/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Reliance (MEX:RS), the current Debt-to-EBITDA is 0.96 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Reliance (MEX:RS) Overvalued in 2026?

Based on GuruFocus' analysis, Reliance stock appears to be overvalued. The current stock price of MXN5,529.80 is trading 13.1% above its estimated GF Value™ of MXN4,891.08.

Key valuation signals for MEX:RS:

  • Debt-to-EBITDA: 0.96 (26% below median its 10-year median of 1.30)
  • GF Value™: MXN4,891.08 vs. price of MXN5,529.80 (13.1% above fair value)
  • GF Score™: 89/100 with 8 warning signs
  • Industry Position: 66.6% below the Steel median (#127 of 495)

No single metric tells the full story. See the MEX:RS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Reliance Business Description

Other Exchanges RS:USARS6:Germany
Address 735 North 19th Avenue, Phoenix, AZ, USA, 85009
Reliance Inc operates a network of companies providing diversified metal solutions and is the metals service center company. It distributes a full line of over 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and other specialty steel products. The company services more than 125,000 customers in a variety of industries, including consumer products, general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, industrial machinery and heavy industry. It also services the auto industry, through its toll processing operations where it processes customer-owned metal for a fee.
89GF Score

Get the complete analysis for MEX:RS

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN5,529.80
Price
MXN4,891.08
GF Value