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Is this Large Market Cap Stock target price reasonable for Reliance Steel & Aluminum Co. (NYSE:RS)?

The company in question is, Reliance Steel & Aluminum Co. (NYSE:RS) currently with a stock price of 68.84 (0.54% today). The market cap for Reliance Steel & Aluminum Co. is 4988.72, and is in the sector Basic Materials, and Steel & Iron industry. The target price for Reliance Steel & Aluminum Co. is 77.75. Currently Reliance Steel & Aluminum Co. is trading with a P/E of 15.97, and a forward P/E of 12.3. Average volume for Reliance Steel & Aluminum Co. is 567.37 and so far today it is 122409.

Performance in the last year for Reliance Steel & Aluminum Co. has been 20.38%. For EPS growth, Reliance Steel & Aluminum Co. has seen a growth of -12.00%, and is looking to grow in the next year to 16.39%. More long term stats show that EPS growth has been 9.80% over the last five years and could be 9.21% for the next five years. Reliance Steel & Aluminum Co. has seen sales growth quarter over quarter at -9.10%, with EPS growth quarter over quarter at 14.10%. The 20-day simple moving average is -4.40%, with the 200-day simple moving average coming to -0.37%.

Since the IPO date for Reliance Steel & Aluminum Co. on the 9/16/1994, Reliance Steel & Aluminum Co. has seen performance year to date to be 20.30%. With Reliance Steel & Aluminum Co. trading at 68.84, the dividend yield is 2.48%, and the EPS is 4.29.

So could Reliance Steel & Aluminum Co., be undervalued? Well as said before P/E is 15.97. The PEG is 1.73, P/S is 0.57 and the P/B is at 1.21. The P/cash is 42.82, with P/free cash flow at 10.33.

Reliance Steel & Aluminum Co. ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 1.1. This is with long term debt/equity at 0.41, and total debt/equity at 0.53.

In terms of margins, Reliance Steel & Aluminum Co. has a gross margin of 29.30%, an operating margin of 6.00% and a profit margin of 3.60%.Payout ratio for Reliance Steel & Aluminum Co. is 36.90%. Return on assets come to 4.20% with return on investment coming to 6.90%.

Insider ownership for Reliance Steel & Aluminum Co., is at 2.70% and institutional ownership comes to 85.20%. Outstanding shares are at 72.86. While shares float is 70.07. The float short is currently 5.07%, and short ratio is 6.26.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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