Reliance, Inc. (RS)
Quantitative Summary
DeterministicAt 24.8x earnings — a 32% discount to the sector average of 36.7x — RS is in the lower valuation range. Financial health is average: Piotroski 5/9, Altman Z 6.3. DCF fair value of $81 implies 75% downside based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe capital allocation efficiency of Reliance, Inc. reveals a significant compression between return generation and cost of capital, with an ROIC-WACC spread that fails to justify the equity premium typically demanded by basic materials equities. The DuPont decomposition highlights that returns are driven primarily by high asset turnover at 1.38x rather than margin expansion or financial leverage; however, this operational velocity yields a modest net margin of only 5.2%, resulting in an ROE of 10.3% that sits uncomfortably low relative to the company's implied growth trajectory. While integrity metrics present a mixed picture—the Beneish M-Score of -2.45 suggests low earnings manipulation risk, yet the Piotroski F-Score of 5/9 indicates moderate financial weakness—these fundamentals underscore an asset-light business model struggling to convert revenue into robust economic value.
Valuation multiples reflect this fundamental disconnect, as the current P/E ratio of 21.8x trades at a steep discount to the sector average of 36.1x, suggesting the market has already priced in substantial downside or expects persistent underperformance relative to peers. This divergence is starkly amplified by discounted cash flow analysis, which assigns a fair value significantly below current levels and projects an implied ten-year free cash flow growth rate of merely 13.6%. The resulting DCF upside of -73.3% implies that the stock's price has been inflated relative to its intrinsic cash-generating capacity over the long term, creating a valuation gap where future earnings must grow at unsustainable rates to justify existing market prices.
Recent insider activity further complicates the risk-reward profile, with net selling totaling $9.7 million over the last 90 days, signaling potential executive caution regarding near-term prospects despite the low manipulation score. Although the company avoids extreme distress signals often associated with negative Beneish scores, the combination of depressed ROIC-WACC spreads, a valuation gap exceeding 40% versus sector peers, and significant insider outflows suggests that current pricing may not adequately compensate for execution risks or capital efficiency constraints inherent to this specific growth profile.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 3% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 7.8% | 9.8% | 11.8% |
|---|---|---|---|
| 2% | $102 | $71 | $52 |
| 3% | $123 | $81 | $58 |
| 4% | $154 | $94 | $65 |
Center = base case. Green = >10% upside, Red = >10% downside vs $391.59.
Pre-computed DCF: WACC=9.8%, terminal growth 3%. Fair value $81 (-75.1%). Not investment advice.
Valuation Context
Currently trading 24% above its 5-year average P/E of 18.6x.
Price Chart with Moving Averages
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Insider Activity (Last 90 Days)
Open-market buys vs sells by company insiders. Source: yfinance.
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-05-22 | $1.2500 | 0.0% |
| 2026-03-06 | $1.2500 | +4.2% |
| 2025-11-21 | $1.2000 | 0.0% |
| 2025-08-15 | $1.2000 | 0.0% |
| 2025-05-23 | $1.2000 | 0.0% |
| 2025-03-07 | $1.2000 | +9.1% |
| 2024-11-22 | $1.1000 | 0.0% |
| 2024-08-16 | $1.1000 | 0.0% |
| 2024-05-23 | $1.1000 | 0.0% |
| 2024-03-07 | $1.1000 | +10.0% |
| 2023-11-16 | $1.0000 | 0.0% |
| 2023-08-17 | $1.0000 | 0.0% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like XME or VAW, the fund manager is mechanically forced to buy or sell RS shares regardless of Reliance, Inc.'s individual fundamentals. We estimate $2.3B of passive capital is structurally linked to RS through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in Reliance, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.
If Reliance, Inc. (RS) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Linde plc (LIN) as the most exposed collateral stock, sharing 1 ETFs with RS. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 20 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
RS Ownership Dynamics
Passive funds hold 1 in every 8 RS shares, reducing daily market volatility.
Reliance, Inc. (RS) exerts measurable gravity on the passive index market, currently representing 5.0% of the XME (XME) and 1.2% of the VAW (VAW). Across 19 tracked ETFs, approximately 6M shares (12.5% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest RS Exposure
Float lock-up computed from 19 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
RS Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for Reliance, Inc. over the past year sits near $281.99 (13% of 252-day volume). The current price of $391.59 trades 38.9% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
RS Capital Efficiency
How efficiently does Reliance, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
Reliance, Inc. converts 36% of its EBITDA into free cash flow, a moderate conversion rate — significant EBITDA is consumed by capital expenditures, working capital changes, or interest payments. The 64% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-0.3%), suggesting reinvested capital is destroying shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-04-09 | 2,067 | $320.33 | $662,122.11 |
| 2026-04-08 | 2,969 | $306.64 | $910,414.16 |
| 2026-03-17 | 15 | $297.80 | $4,467 |
| 2026-03-06 | 7 | $311.15 | $2,178.05 |
| 2026-03-02 | 6,702 | $315.64 | $2.1M |
| 2026-02-19 | 120 | $336.44 | $40,372.8 |
| 2026-02-09 | 252 | $353.27 | $89,024.04 |
| 2026-01-14 | 7 | $311.62 | $2,181.34 |
| 2026-01-07 | 593 | $299.82 | $177,793.26 |
| 2025-12-24 | 2,503 | $295.37 | $739,311.11 |
| 2025-12-23 | 50 | $295.52 | $14,776 |
| 2025-12-22 | 5 | $290.99 | $1,454.95 |
| 2025-11-19 | 23 | $265.93 | $6,116.39 |
| 2025-11-05 | 1,975 | $275.79 | $544,685.25 |
| 2025-10-31 | 3 | $279.89 | $839.67 |
| 2025-10-29 | 320 | $280.17 | $89,654.4 |
| 2025-10-28 | 122 | $278.73 | $34,005.06 |
| 2025-10-27 | 125 | $277.13 | $34,641.25 |
| 2025-10-24 | 121 | $273.74 | $33,122.54 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| STLD | 0.671 | 0.739 | Moderate |
| CMC | 0.641 | 0.625 | Moderate |
| NUE | 0.629 | 0.711 | Moderate |
| TXT | 0.568 | 0.466 | Moderate |
| WAB | 0.559 | 0.575 | Moderate |
| COLB | 0.511 | 0.516 | Moderate |
| DOV | 0.494 | 0.440 | Moderate |
| ITW | 0.491 | 0.509 | Moderate |
| HWC | 0.485 | 0.511 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare RS to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.