Russel Metals Inc. Fundamental Analysis (TSX: RUS.TO)
Russel Metals Inc. (TSX: RUS.TO) shows moderate financial fundamentals with a PE ratio of 19.28, profit margin of 4.04%, and ROE of 13.09%. The company generates $5.3B in annual revenue with moderate year-over-year growth of 8.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RUS.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakRUS.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRUS.TO trades at attractive valuation levels.
Growth Score
ExcellentRUS.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRUS.TO maintains a strong and stable balance sheet.
Profitability Score
WeakRUS.TO struggles to sustain strong margins.
Key Financial Metrics
Is RUS.TO Expensive or Cheap?
P/E Ratio
RUS.TO trades at 19.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RUS.TO's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Russel Metals Inc. at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.37 times EBITDA. This is generally considered low.
How Well Does RUS.TO Make Money?
Net Profit Margin
For every $100 in sales, Russel Metals Inc. keeps $4.04 as profit after all expenses.
Operating Margin
Core operations generate 5.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.09 in profit for every $100 of shareholder equity.
ROA
Russel Metals Inc. generates $6.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Russel Metals Inc. generates limited operating cash flow of $255.01M, signaling weaker underlying cash strength.
Free Cash Flow
Russel Metals Inc. produces free cash flow of $189.83M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.46 in free cash annually.
FCF Yield
RUS.TO converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How RUS.TO Stacks Against Its Sector Peers
| Metric | RUS.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.28 | 29.88 | Better (Cheaper) |
| ROE | 13.09% | 1106.00% | Weak |
| Net Margin | 4.04% | -24767.00% (disorted) | Weak |
| Debt/Equity | 0.28 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 2.61 | 21.64 | Strong Liquidity |
| ROA | 6.99% | -1320894.00% (disorted) | Weak |
RUS.TO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Russel Metals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
663.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-40.44%
Industry Style: Cyclical, Value, Infrastructure
Declining