Morningstar Rating

Stock Research and Analysis

by Andrew Lane

Bulls Say

The company's management team has a proven ability to find and execute value-accretive acquisitions.
The company’s growth has improved its ability to procure high volumes of unfinished metals from metal producers.
The company’s business model relies heavily on just-in-time delivery on a next-day basis, which protects its shipment volumes from the impact of processed steel imports. Read more 

Bears Say

Nearly half of the company’s business is distribution-only, limited its ability to add value to its products and differentiate itself from its peers.
The company is highly dependent on steel mills that have the ability to drastically change selling prices at their own discretion, which can cause inventory devaluations.
Processing and distribution is a low-margin business that is perpetually squeezed by consolidation. Read more 

Management

We assign an Exemplary stewardship rating to Reliance’s management team, as we believe that the company’s executives have distinguished themselves as particularly adept stewards of shareholder capital. In March 2015, the board of directors approved   Read more 

Profile

Reliance Steel & Aluminum is the largest metal service center in the United States, providing metal processing and inventory management services for carbon and stainless   Read more 

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