Russel Metals Inc.
Russel Metals Inc. Fundamental Analysis
Russel Metals Inc. (RUSMF) shows weak financial fundamentals with a PE ratio of 15.53, profit margin of 3.64%, and ROE of 10.44%. The company generates $4.7B in annual revenue with weak year-over-year growth of -5.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RUSMF's fundamental strength across five key dimensions:
Efficiency Score
WeakRUSMF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRUSMF shows balanced valuation metrics.
Growth Score
WeakRUSMF faces weak or negative growth trends.
Financial Health Score
ExcellentRUSMF maintains a strong and stable balance sheet.
Profitability Score
WeakRUSMF struggles to sustain strong margins.
Key Financial Metrics
Is RUSMF Expensive or Cheap?
P/E Ratio
RUSMF trades at 15.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RUSMF's PEG of 3.23 indicates potential overvaluation.
Price to Book
The market values Russel Metals Inc. at 1.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.68 times EBITDA. This is generally considered low.
How Well Does RUSMF Make Money?
Net Profit Margin
For every $100 in sales, Russel Metals Inc. keeps $3.64 as profit after all expenses.
Operating Margin
Core operations generate 5.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.44 in profit for every $100 of shareholder equity.
ROA
Russel Metals Inc. generates $6.29 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 $201.83M, signaling weaker underlying cash strength.
Free Cash Flow
Russel Metals Inc. generates weak or negative free cash flow of $126.58M, restricting financial flexibility.
FCF Per Share
Each share generates $2.25 in free cash annually.
FCF Yield
RUSMF converts 4.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How RUSMF Stacks Against Its Sector Peers
| Metric | RUSMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.53 | 25.96 | Better (Cheaper) |
| ROE | 10.44% | 1263.00% | Weak |
| Net Margin | 3.64% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 3.06 | 10.05 | Strong Liquidity |
| ROA | 6.29% | -1497918.00% (disorted) | Weak |
RUSMF 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
22.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
121.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
45.33%
Industry Style: Cyclical, Value, Infrastructure
High Growth