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Reliance (Reliance) Piotroski F-Score : 6 (As of Jul. 17, 2024)


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What is Reliance Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Reliance has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Reliance's Piotroski F-Score or its related term are showing as below:

RS' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Reliance was 8. The lowest was 3. And the median was 6.


Reliance Piotroski F-Score Historical Data

The historical data trend for Reliance's Piotroski F-Score 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.

* Premium members only.

Reliance Piotroski F-Score Chart

Reliance Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 6.00 7.00 7.00 6.00

Reliance Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score 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 6.00 6.00 7.00 6.00 6.00

Competitive Comparison of Reliance's Piotroski F-Score

For the Steel subindustry, Reliance's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Reliance's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Reliance's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 385.1 + 295 + 272.7 + 302.9 = $1,256 Mil.
Cash Flow from Operations was 295.1 + 466 + 525.6 + 126.3 = $1,413 Mil.
Revenue was 3880.3 + 3623 + 3337.3 + 3644.8 = $14,485 Mil.
Gross Profit was 1222.7 + 1077 + 1021.6 + 1128.2 = $4,450 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(10203.2 + 10440.4 + 10492.9 + 10480.3 + 10712.2) / 5 = $10465.8 Mil.
Total Assets at the begining of this year (Mar23) was $10,203 Mil.
Long-Term Debt & Capital Lease Obligation was $1,320 Mil.
Total Current Assets was $4,923 Mil.
Total Current Liabilities was $857 Mil.
Net Income was 572.8 + 393.5 + 350.5 + 383.1 = $1,700 Mil.

Revenue was 4681.2 + 4247.2 + 3610.8 + 3965.3 = $16,505 Mil.
Gross Profit was 1495.4 + 1239 + 1129.8 + 1226 = $5,090 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(10114.2 + 10402.7 + 10202.2 + 10329.9 + 10203.2) / 5 = $10250.44 Mil.
Total Assets at the begining of last year (Mar22) was $10,114 Mil.
Long-Term Debt & Capital Lease Obligation was $1,306 Mil.
Total Current Assets was $4,712 Mil.
Total Current Liabilities was $975 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Reliance's current Net Income (TTM) was 1,256. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Reliance's current Cash Flow from Operations (TTM) was 1,413. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=1255.7/10203.2
=0.12306923

ROA (Last Year)=Net Income/Total Assets (Mar22)
=1699.9/10114.2
=0.16807063

Reliance's return on assets of this year was 0.12306923. Reliance's return on assets of last year was 0.16807063. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Reliance's current Net Income (TTM) was 1,256. Reliance's current Cash Flow from Operations (TTM) was 1,413. ==> 1,413 > 1,256 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=1320.4/10465.8
=0.12616331

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=1305.7/10250.44
=0.1273799

Reliance's gearing of this year was 0.12616331. Reliance's gearing of last year was 0.1273799. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=4923.4/857.4
=5.74224399

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=4712.1/975.4
=4.83094115

Reliance's current ratio of this year was 5.74224399. Reliance's current ratio of last year was 4.83094115. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Reliance's number of shares in issue this year was 57.882. Reliance's number of shares in issue last year was 59.534. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4449.5/14485.4
=0.30717136

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5090.2/16504.5
=0.30841286

Reliance's gross margin of this year was 0.30717136. Reliance's gross margin of last year was 0.30841286. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=14485.4/10203.2
=1.41969186

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=16504.5/10114.2
=1.63181468

Reliance's asset turnover of this year was 1.41969186. Reliance's asset turnover of last year was 1.63181468. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Reliance has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Reliance  (NYSE:RS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Reliance Piotroski F-Score Related Terms

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Reliance (Reliance) Business Description

Traded in Other Exchanges
Address
16100 N. 71st Street, Suite 400, Scottsdale, AZ, USA, 85254
Reliance Steel & Aluminum Co is a metal service center in the United States, providing metal processing and inventory management services for carbon and stainless steel, aluminum, and alloys. Reliance predominantly supplies the nonresidential construction, automotive, aerospace, energy, transportation, and heavy equipment end markets. Its product offerings comprise alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products.
Executives
Michael R Hynes officer: Sr. VP, Operations C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
James Donald Hoffman director, officer: CEO C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Karla R Lewis director, officer: President C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Jeffrey Wayne Durham officer: Sr. VP, Operations C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Mark V Kaminski director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Smith William A Ii officer: SVP, General Counsel, Corp Sec C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Sean Michael Mollins officer: SVP, Operations 350 SOUTH GRAND AVENUE, SUITE 5100, LOS ANGELES CA 90071
Arthur Ajemyan officer: VP, CFO C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Stephen Paul Koch officer: Sr. VP, Operations C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
David W Seeger director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Karen Winifred Colonias director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
John G. Figueroa director 350 SOUTH GRAND AVENUE, SUITE 5100, LOS ANGELES CA 90071
Robert Ambrose Mcevoy director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Lisa Baldwin director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Douglas Stotlar director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254