Reliance Inc. Common Stock (RS)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $306 million in annual free cash flow (1.7% yield on market cap)
• Solid return on equity of 10.3% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.24, providing financial flexibility
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency
• Established organization with 15,700 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($219) with negative 58% margin of safety—limited downside protection

AI Analysis

Reliance Inc. Common Stock is a mid-cap basic materials company valued at $17.9 billion. The business generates $14.3 billion in annual revenue with a 1.9% net margin and $306 million in free cash flow. From a quality standpoint, Reliance shows Altman Z-Score of 5.1 confirms fortress-level solvency and adequate 10% ROE. On valuation, the stock is reasonably priced at 22.5x earnings, with trades above its Graham Number with a negative 58% margin. Growth dynamics show revenue growing at 11.9% and profit growth of 10.6%. The 1.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $306 million in annual free cash flow (1.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer