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Reliance Steel & Aluminum Co Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

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

Reliance Steel & Aluminum Co 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 Steel & Aluminum Co's Piotroski F-Score or its related term are showing as below:

RS' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Reliance Steel & Aluminum Co was 8. The lowest was 2. And the median was 6.


Reliance Steel & Aluminum Co Piotroski F-Score Historical Data

The historical data trend for Reliance Steel & Aluminum Co'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 Steel & Aluminum Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 6.00 7.00

Reliance Steel & Aluminum Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 7.00 6.00 6.00

Competitive Comparison

For the Steel subindustry, Reliance Steel & Aluminum Co'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 Steel & Aluminum Co Piotroski F-Score Distribution

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

* The bar in red indicates where Reliance Steel & Aluminum Co'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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 395.7 + 421.3 + 523.3 + 572.8 = $1,913 Mil.
Cash Flow from Operations was 142.2 + 393.8 + 404 + 270.2 = $1,210 Mil.
Revenue was 3847.4 + 3988.7 + 4485.8 + 4681.2 = $17,003 Mil.
Gross Profit was 1211.1 + 1243.3 + 1387.1 + 1495.4 = $5,337 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(8930 + 9252.4 + 9536 + 10114.2 + 10402.7) / 5 = $9647.06 Mil.
Total Assets at the begining of this year (Jun21) was $8,930 Mil.
Long-Term Debt & Capital Lease Obligation was $1,305 Mil.
Total Current Assets was $5,024 Mil.
Total Current Liabilities was $1,666 Mil.
Net Income was 97.6 + 129.6 + 266.9 + 329.1 = $823 Mil.

Revenue was 2085.6 + 2134.1 + 2838.4 + 3418.8 = $10,477 Mil.
Gross Profit was 676.1 + 703.6 + 953.7 + 1082.2 = $3,416 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(7724.1 + 7998.7 + 8106.8 + 8549 + 8930) / 5 = $8261.72 Mil.
Total Assets at the begining of last year (Jun20) was $7,724 Mil.
Long-Term Debt & Capital Lease Obligation was $1,801 Mil.
Total Current Assets was $3,945 Mil.
Total Current Liabilities was $905 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 Steel & Aluminum Co's current Net Income (TTM) was 1,913. ==> 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 Steel & Aluminum Co's current Cash Flow from Operations (TTM) was 1,210. ==> 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 (Jun21)
=1913.1/8930
=0.21423292

ROA (Last Year)=Net Income/Total Assets (Jun20)
=823.2/7724.1
=0.10657552

Reliance Steel & Aluminum Co's return on assets of this year was 0.21423292. Reliance Steel & Aluminum Co's return on assets of last year was 0.10657552. ==> This year is higher. ==> Score 1.

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 Steel & Aluminum Co's current Net Income (TTM) was 1,913. Reliance Steel & Aluminum Co's current Cash Flow from Operations (TTM) was 1,210. ==> 1,210 <= 1,913 ==> CFROA <= ROA ==> Score 0.

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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=1304.8/9647.06
=0.13525364

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1801.2/8261.72
=0.21801756

Reliance Steel & Aluminum Co's gearing of this year was 0.13525364. Reliance Steel & Aluminum Co's gearing of last year was 0.21801756. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=5023.9/1665.6
=3.01627041

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=3944.6/904.9
=4.35915571

Reliance Steel & Aluminum Co's current ratio of this year was 3.01627041. Reliance Steel & Aluminum Co's current ratio of last year was 4.35915571. ==> Last year's current ratio is higher ==> Score 0.

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 Steel & Aluminum Co's number of shares in issue this year was 62.594. Reliance Steel & Aluminum Co's number of shares in issue last year was 64.793. ==> 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
=5336.9/17003.1
=0.31387806

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3415.6/10476.9
=0.32601247

Reliance Steel & Aluminum Co's gross margin of this year was 0.31387806. Reliance Steel & Aluminum Co's gross margin of last year was 0.32601247. ==> 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 (Jun21)
=17003.1/8930
=1.90404255

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=10476.9/7724.1
=1.35639104

Reliance Steel & Aluminum Co's asset turnover of this year was 1.90404255. Reliance Steel & Aluminum Co's asset turnover of last year was 1.35639104. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

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

Reliance Steel & Aluminum Co  (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 Steel & Aluminum Co Piotroski F-Score Related Terms

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Reliance Steel & Aluminum Co Business Description

Reliance Steel & Aluminum Co logo
Traded in Other Exchanges
Address
350 South Grand Avenue, Suite 5100, Los Angeles, CA, USA, 90071
Reliance Steel & Aluminum is a metal service center in the United States, providing metal processing and inventory management services for carbon and stainless steel, aluminum, and alloys. The company provides over 100,000 product types to approximately more than 125,000 customers. 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
Dellaquila Frank J director EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Stotlar Douglas director C/O LSC COMMUNICATIONS, INC. 191 N. WACKER DRIVE, SUITE 1400 CHICAGO IL 60606
Seeger David W director 227 WEST MONROE STREET, SUITE 2600 CHICAGO IL 60606
Baldwin Lisa director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Mcevoy Robert Ambrose director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Figueroa John G. director 350 SOUTH GRAND AVENUE SUITE 5100 LOS ANGELES CA 90071
Colonias Karen Winifred director 5956 W. LAS POSITAS BLVD. PLEASANTON CA 94588
Kaminski Mark V director C/O COMMONWEALTH INDUSTRIES INC 500 WEST JEFFERSON SUITE 1900 LOUISVILLE KY 40202
Sharkey Andrew G Iii director 350 S. GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Lewis Karla R director, officer: President 350 S GRAND AVE STE 5100 LOS ANGELES CA 90071
Sales William K Jr officer: Special Advisor RELIANCE STEEL & ALUMINUM CO 350 S. GRAND AVE., SUITE 5100 LOS ANGELES CA 90071
Mollins Sean Michael officer: SVP, Operations 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Smith William A Ii officer: SVP, General Counsel, Corp Sec 350 S. GRAND AVE. SUITE 5100 LOS ANGELES CA 90071
Hoffman James Donald director, officer: CEO 350 S. GRAND AVE., STE 5100 LOS ANGELES CA 90071
Koch Stephen Paul officer: Sr. VP, Operations 350 S. GRAND AVE., STE. 5100 LOS ANGELES CA 90071

Reliance Steel & Aluminum Co Headlines

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