Business Analysis of Reliance Steel & Aluminum

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Reliance Steel & Aluminum

RELIANCE STEEL & ALUMINUM

Business Overview

Reliance Steel & Aluminum Co. operates as a metals service center company. The company provides metals processing services and distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products. Its primary processing services comprise cutting, leveling, sawing, machining, and electro polishing. The company also fabricates and distributes structural steel components and parts; offers inventory management services; distributes alloy, carbon, and stainless steel bar and plate products; steel and non-ferrous metal products; and aerospace metals, including aluminum, steel, titanium, nickel alloys, and aluminum bronze, offering full or cut to size materials. It serves general manufacturing, non-residential construction, transportation, aerospace and defense, energy, electronics and semiconductor fabrication, and heavy and auto industries. The company sells its products to original equipment manufacturers, small machine shops, and fabricators. It operates through a network of metals service centers in approximately 300 locations in 39 states in the United States, as well as in Australia, Belgium, Canada, China, France, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates, and the United Kingdom. Reliance Steel & Aluminum Co. was founded in 1939 and is headquartered in Los Angeles, California.

Reliance Steel & Aluminum

Reliance Steel & Aluminum


R&P Rank: 327
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:California
Website: www.rsac.com
Company Address:
350 S GRAND AVE STE 5100, LOS ANGELES CA 90071
Ph:213-687-7700

Business Analysis of Reliance Steel & Aluminum

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Reliance Steel & Aluminum compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Reliance Steel & Aluminum to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Reliance Steel & Aluminum with an interactive chart.

  1. Revenue Growth: Reliance Steel & Aluminum reported a revenue growth of -7.9% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum spent 69.9% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
  3. R&D share of Revenues: Reliance Steel & Aluminum R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum spent 20.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Metal Mining industry average SG&A spending in the same period was 6.3%
  5. Inventory share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum spent 17.8% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum invested 3.5% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum invested 11.1% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
  8. PP&E share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum invested 19.3% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Reliance Steel & Aluminum invested 34.6% of its total revenues on Intangibles. Metal Mining industry average Intangibles investment in the same period was 10.6%
  10. Net Margins: Reliance Steel & Aluminum Net Margins in the year 2016 were 3.5%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of Reliance Steel & Aluminum

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Reliance Steel & Aluminum is associated with Basic Materials Sector and Metal Mining Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Reliance Steel & Aluminum

With $8.6 billion revenues, Reliance Steel & Aluminum ranked number 6 of all the companies in the US Metal Mining industry. There were a total of 34 public companies in the US Metal Mining industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Metal Mining industry by revenues during 2016 were:

  1. Nucor ($16.2 billion)
  2. Freeport-McMoRan ($14.8 billion)
  3. Arconic ($12.4 billion)
  4. United States Steel ($10.3 billion)
  5. Alcoa ($9.3 billion)
  6. Reliance Steel & Aluminum ($8.6 billion)
  7. Steel Dynamics ($7.8 billion)
  8. A-Mark Precious Metals ($6.8 billion)
  9. Newmont Mining ($6.7 billion)
  10. AK Steel Holding ($5.9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Reliance Steel & Aluminumand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of reliance-steel-aluminum

Arconic (ARNC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Arconic Inc. with $12 billion revenues in the year 2016 was the number 3 Metal Mining company. Read this report to know the top competitors of Arconic and identify growth and cost optimization opportunities of Arconic

United States Steel (X) Business Analysis – Analyze Historical Performance, Strategic...

United States Steel Corp with $10 billion revenues in the year 2016 was the number 4 Metal Mining company. Read this report to know the top competitors of United States Steel and identify growth and cost optimization opportunities of United States Steel

Alcoa (AA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Alcoa Corp with $9 billion revenues in the year 2016 was the number 5 Metal Mining company. Read this report to know the top competitors of Alcoa and identify growth and cost optimization opportunities of Alcoa

Steel Dynamics (STLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Steel Dynamics Inc with $8 billion revenues in the year 2016 was the number 7 Metal Mining company. Read this report to know the top competitors of Steel Dynamics and identify growth and cost optimization opportunities of Steel Dynamics

A-Mark Precious Metals (AMRK) Business Analysis – Analyze Historical Performance, Strategic...

A-Mark Precious Metals, Inc. with $7 billion revenues in the year 2016 was the number 8 Metal Mining company. Read this report to know the top competitors of A-Mark Precious Metals and identify growth and cost optimization opportunities of A-Mark Precious Metals

Newmont Mining (NEM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Newmont Mining Corp with $7 billion revenues in the year 2016 was the number 9 Metal Mining company. Read this report to know the top competitors of Newmont Mining and identify growth and cost optimization opportunities of Newmont Mining

Revenues Analysis

Reliance Steel & Aluminum (RS) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Reliance Steel & Aluminum Co (RS) from 2012 to 2016. Reliance Steel & Aluminum generated a total of $8.6 billion revenues during 2016. Reliance Steel & Aluminum reported a revenue growth of -7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Reliance Steel & Aluminum (RS) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Reliance Steel & Aluminum Co (RS) from 2002 to 2016. Reliance Steel & Aluminum generated a total of $8.6 billion revenues during 2016. Reliance Steel & Aluminum reported a revenue growth of -7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Reliance Steel & Aluminum (RS) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Reliance Steel & Aluminum Co (RS) revenue growth with Metal Mining industry growth during the last five years from 2012 to 2016. Reliance Steel & Aluminum reported a revenue growth of -7.9% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. Reliance Steel & Aluminum growth was slower than the industry during 2016.

Profit Analysis

Reliance Steel & Aluminum (RS) Net Profit And Net Margin From...

This report provides the last five years net profit and net margin of Reliance Steel & Aluminum Co (RS) from 2012 to 2016. Reliance Steel & Aluminum reported a total net income of $304.3 million during 2016. Reliance Steel & Aluminum generated a total of $8.6 billion revenues duri