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Russel Metals

TSX:RUS
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RUS
TSX
CA$818M
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Russel Metals Inc., a metals distribution company, distributes steel and other metal products in North America. The last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
  • Russel Metals has significant price volatility in the past 3 months.
RUS Share Price and Events
7 Day Returns
7.3%
TSX:RUS
0.4%
CA Trade Distributors
-0.1%
CA Market
1 Year Returns
-46.1%
TSX:RUS
-26.5%
CA Trade Distributors
-24.6%
CA Market
RUS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Russel Metals (RUS) 7.3% -34.8% -41.2% -46.1% -51.8% -48.2%
CA Trade Distributors 0.4% -20.8% -28.2% -26.5% -21.5% -10.5%
CA Market -0.1% -21.2% -24.7% -24.6% -22.1% -16.5%
1 Year Return vs Industry and Market
  • RUS underperformed the Trade Distributors industry which returned -26.5% over the past year.
  • RUS underperformed the Market in Canada which returned -24.6% over the past year.
Price Volatility
RUS
Industry
5yr Volatility vs Market

RUS Value

 Is Russel Metals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Russel Metals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Russel Metals.

TSX:RUS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:RUS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.868 (1 + (1- 26.5%) (75.62%))
1.234
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.234 * 5.44%)
8.15%

Discounted Cash Flow Calculation for TSX:RUS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Russel Metals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:RUS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.15%)
2020 181.53 Analyst x3 167.85
2021 144.15 Analyst x2 123.23
2022 154.00 Analyst x1 121.73
2023 141.35 Est @ -8.22% 103.30
2024 133.83 Est @ -5.32% 90.43
2025 129.42 Est @ -3.29% 80.86
2026 127.00 Est @ -1.87% 73.36
2027 125.89 Est @ -0.88% 67.24
2028 125.66 Est @ -0.18% 62.05
2029 126.04 Est @ 0.3% 57.55
Present value of next 10 years cash flows CA$947.00
TSX:RUS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$126.04 × (1 + 1.44%) ÷ (8.15% – 1.44%)
CA$1,904.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,904.02 ÷ (1 + 8.15%)10
CA$869.38
TSX:RUS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$947.00 + CA$869.38
CA$1,816.38
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,816.38 / 62.18
CA$29.21
TSX:RUS Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$29.21
Current discount Discount to share price of CA$13.15
= -1 x (CA$13.15 - CA$29.21) / CA$29.21
55%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Russel Metals is available for.
Intrinsic value
>50%
Share price is CA$13.15 vs Future cash flow value of CA$29.21
Current Discount Checks
For Russel Metals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Russel Metals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Russel Metals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Russel Metals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Russel Metals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:RUS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.23
TSX:RUS Share Price ** TSX (2020-04-02) in CAD CA$13.15
Canada Trade Distributors Industry PE Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 10.03x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Russel Metals.

TSX:RUS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:RUS Share Price ÷ EPS (both in CAD)

= 13.15 ÷ 1.23

10.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Russel Metals is overvalued based on earnings compared to the CA Trade Distributors industry average.
  • Russel Metals is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Russel Metals's expected growth come at a high price?
Raw Data
TSX:RUS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
29.5%per year
Canada Trade Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Trade Distributors Companies 0.44x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

TSX:RUS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.67x ÷ 29.5%

0.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Russel Metals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Russel Metals's assets?
Raw Data
TSX:RUS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$15.19
TSX:RUS Share Price * TSX (2020-04-02) in CAD CA$13.15
Canada Trade Distributors Industry PB Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 0.7x
Canada Market PB Ratio Median Figure of 2,356 Publicly-Listed Companies 0.98x
TSX:RUS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:RUS Share Price ÷ Book Value per Share (both in CAD)

= 13.15 ÷ 15.19

0.87x

* Primary Listing of Russel Metals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Russel Metals is overvalued based on assets compared to the CA Trade Distributors industry average.
X
Value checks
We assess Russel Metals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Russel Metals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RUS Future Performance

 How is Russel Metals expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Russel Metals expected to grow at an attractive rate?
  • Russel Metals's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Russel Metals's earnings growth is expected to exceed the Canada market average.
  • Russel Metals's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:RUS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:RUS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 29.5%
TSX:RUS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -0.5%
Canada Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 5.3%
Canada Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:RUS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:RUS Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,619 1
2021-12-31 3,551 184 143 5
2020-12-31 3,301 211 118 5
2020-04-03
TSX:RUS Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,676 250 77
2019-09-30 3,954 220 129
2019-06-30 4,225 114 180
2019-03-31 4,266 92 215
2018-12-31 4,165 88 219
2018-09-30 3,875 -36 201
2018-06-30 3,586 -8 166
2018-03-31 3,424 -53 133
2017-12-31 3,296 -68 124
2017-09-30 3,125 -1 119
2017-06-30 2,913 45 101
2017-03-31 2,720 98 85

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Russel Metals's earnings are expected to grow significantly at over 20% yearly.
  • Russel Metals's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:RUS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Russel Metals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RUS Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.30 2.30 2.30 1.00
2020-12-31 1.90 1.90 1.90 1.00
2020-04-03
TSX:RUS Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.23
2019-09-30 2.08
2019-06-30 2.89
2019-03-31 3.46
2018-12-31 3.53
2018-09-30 3.24
2018-06-30 2.69
2018-03-31 2.15
2017-12-31 2.00
2017-09-30 1.92
2017-06-30 1.63
2017-03-31 1.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Russel Metals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Russel Metals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Russel Metals has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RUS Past Performance

  How has Russel Metals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Russel Metals's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Russel Metals has delivered over 20% year on year earnings growth in the past 5 years.
  • Russel Metals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Russel Metals's 1-year earnings growth is negative, it can't be compared to the CA Trade Distributors industry average.
Earnings and Revenue History
Russel Metals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Russel Metals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RUS Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,675.90 76.60 296.30
2019-09-30 3,953.90 129.40 305.70
2019-06-30 4,224.80 179.50 328.00
2019-03-31 4,266.30 214.80 336.60
2018-12-31 4,165.00 219.00 335.10
2018-09-30 3,874.70 200.80 322.50
2018-06-30 3,585.50 166.30 302.40
2018-03-31 3,423.80 132.70 286.20
2017-12-31 3,296.00 123.80 274.90
2017-09-30 3,124.50 118.50 271.90
2017-06-30 2,912.80 100.70 260.20
2017-03-31 2,720.00 84.60 252.40
2016-12-31 2,578.60 62.80 250.50
2016-09-30 2,598.00 -95.20 241.60
2016-06-30 2,732.20 -98.30 247.70
2016-03-31 2,869.80 -98.30 247.60
2015-12-31 3,111.60 -87.60 254.80
2015-09-30 3,451.80 78.80 271.80
2015-06-30 3,717.20 98.90 279.00
2015-03-31 3,849.20 113.00 288.20
2014-12-31 3,869.30 123.50 287.80
2014-09-30 3,667.20 115.20 280.00
2014-06-30 3,425.20 101.20 269.90
2014-03-31 3,290.00 90.60 257.80
2013-12-31 3,187.80 83.20 248.80
2013-09-30 3,142.60 80.50 240.00
2013-06-30 3,058.40 84.00 227.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Russel Metals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Russel Metals used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
  • Russel Metals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Russel Metals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Russel Metals has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RUS Health

 How is Russel Metals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Russel Metals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Russel Metals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Russel Metals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Russel Metals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Russel Metals Company Filings, last reported 3 months ago.

TSX:RUS Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 944.60 506.90 16.00
2019-09-30 983.50 579.70 128.60
2019-06-30 980.20 579.60 98.10
2019-03-31 987.70 598.00 106.90
2018-12-31 1,004.90 572.10 124.30
2018-09-30 958.30 610.30 73.30
2018-06-30 918.30 575.40 117.20
2018-03-31 859.20 558.50 136.00
2017-12-31 826.80 504.20 125.80
2017-09-30 819.90 480.90 145.80
2017-06-30 819.80 422.70 164.30
2017-03-31 830.30 374.30 168.80
2016-12-31 825.30 330.60 181.80
2016-09-30 805.80 410.90 192.80
2016-06-30 806.70 388.60 163.40
2016-03-31 818.90 371.60 140.70
2015-12-31 868.90 389.30 143.40
2015-09-30 1,009.00 478.40 94.40
2015-06-30 987.30 487.30 27.50
2015-03-31 996.80 493.40 15.90
2014-12-31 965.00 484.10 53.40
2014-09-30 940.80 459.00 27.60
2014-06-30 909.40 472.90 52.20
2014-03-31 902.50 456.60 86.30
2013-12-31 882.40 455.50 116.20
2013-09-30 862.60 468.90 139.10
2013-06-30 870.60 475.00 160.60
  • Russel Metals's level of debt (53.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (50.2% vs 53.7% today).
  • Debt is well covered by operating cash flow (49.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Russel Metals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Russel Metals has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RUS Dividends

 What is Russel Metals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
11.56%
Current annual income from Russel Metals dividends. Estimated to be 11.56% next year.
If you bought CA$2,000 of Russel Metals shares you are expected to receive CA$231 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Russel Metals's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.7%).
  • Russel Metals's dividend is above the markets top 25% of dividend payers in Canada (8.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:RUS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:RUS Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.52 1.00
2021-12-31 1.52 4.00
2020-12-31 1.52 4.00
2020-04-03
TSX:RUS Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-11 1.520 9.257
2019-11-06 1.520 6.756
2019-08-08 1.520 7.388
2019-02-07 1.520 6.711
2018-11-07 1.520 6.694
2018-08-09 1.520 5.654
2018-02-14 1.520 5.295
2017-11-08 1.520 5.150
2017-08-02 1.520 5.586
2017-05-03 1.520 5.995
2017-02-16 1.520 5.713
2016-11-08 1.520 5.799
2016-05-03 1.520 6.821
2016-02-16 1.520 7.775
2015-10-30 1.520 9.208
2015-08-12 1.520 7.197
2015-05-05 1.520 6.638
2014-11-04 1.520 5.828
2014-08-12 1.520 4.380
2014-05-06 1.400 4.109
2014-02-19 1.400 4.613
2013-11-07 1.400 4.803
2013-08-07 1.400 5.133
2013-05-02 1.400 5.413
2013-02-12 1.400 4.953
2012-10-30 1.400 4.998
2012-08-02 1.400 5.289
2012-05-03 1.400 5.559
2012-02-15 1.200 4.487
2011-11-03 1.200 5.038
2011-08-03 1.200 5.471
2011-05-12 1.100 4.585
2011-02-17 1.100 4.226
2010-11-02 1.000 4.423
2010-08-11 1.000 4.957
2010-05-12 1.000 5.280
2010-02-18 1.000 5.015
2009-11-03 1.000 5.754
2009-08-05 1.000 5.984
2009-05-12 1.000 6.722

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Russel Metals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Russel Metals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Russel Metals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Russel Metals has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RUS Management

 What is the CEO of Russel Metals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Reid
COMPENSATION CA$3,815,721
AGE 49
TENURE AS CEO 1.9 years
CEO Bio

Mr. John Gregory Reid has been the President at Russel Metals Inc. since January 01, 2016 and has been its Chief Executive Officer since May 2, 2018. Mr. Reid served as Chief Operating Officer at Russel Metals Inc. since February 21, 2013 until May 02, 2018 and as its Executive Vice President since May 2, 2013 until January 01, 2016. Mr. Reid served as the President of the JMS Russel Metals Corp. at Russel Metals Inc. since 2007. He served as Vice President of Operations - Service Centers at Russel Metals Inc. from 2009 to 2013. He served as Vice President of US Operations at Russel Metals Inc. from September 17, 2009 to September 2010. He has an impressive track record with 26 years of industry experience as an entrepreneur, a manager and a leader. He has been Director at Russel Metals Inc. since May 2, 2018. Mr. Reid started with JMS Metals Services, Inc. and related companies (“JMS“) in 1991 and served as President of JMS since 1994.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Russel Metals management team in years:

9.3
Average Tenure
  • The average tenure for the Russel Metals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Reid

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
49
TENURE
1.9 yrs

Marion Britton

TITLE
Executive VP
COMPENSATION
CA$1M
TENURE
12.2 yrs

Ryan MacDermid

TITLE
Vice President of Risk Management & Legal
COMPENSATION
CA$522K
TENURE
5.1 yrs

Dean Rougas

TITLE
President of Spartan Steel Products Division
TENURE
9.3 yrs

Lesley M. Coleman

TITLE
VP, Controller & Assistant Secretary
COMPENSATION
CA$289K
TENURE
15.3 yrs

Reynold Wilden

TITLE
President of Pioneer Pipe

Sherri McKelvey

TITLE
Assistant Secretary
Board of Directors Tenure

Average tenure and age of the Russel Metals board of directors in years:

7.4
Average Tenure
65.5
Average Age
  • The tenure for the Russel Metals board of directors is about average.
Board of Directors

Jim Dinning

TITLE
Independent Chair of the Board
COMPENSATION
CA$295K
AGE
65
TENURE
5.9 yrs

John Reid

TITLE
CEO, President & Director
COMPENSATION
CA$4M
AGE
49
TENURE
1.9 yrs

Bill O'Reilly

TITLE
Independent Director
COMPENSATION
CA$184K
AGE
70
TENURE
10.9 yrs

John Clark

TITLE
Independent Director
COMPENSATION
CA$190K
AGE
64
TENURE
7.9 yrs

John Tulloch

TITLE
Independent Director
COMPENSATION
CA$191K
AGE
72
TENURE
6.9 yrs

Brian Hedges

TITLE
Non-Independent Director
COMPENSATION
CA$172K
AGE
66
TENURE
10.9 yrs

Alain Benedetti

TITLE
Independent Director
COMPENSATION
CA$188K
AGE
70
TENURE
14.2 yrs

Alice Laberge

TITLE
Independent Director
COMPENSATION
CA$176K
AGE
62
TENURE
12.8 yrs

Barbara Jeremiah

TITLE
Independent Director
COMPENSATION
CA$176K
AGE
67
TENURE
3.9 yrs

Annie Thabet

TITLE
Independent Director
COMPENSATION
CA$176K
AGE
58
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Russel Metals individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
19. Mar 20 Buy James Dinning Individual 19. Mar 20 19. Mar 20 4,000 CA$13.69 CA$54,754
17. Mar 20 Buy John Reid Individual 16. Mar 20 16. Mar 20 71,000 CA$14.90 CA$1,019,965
16. Mar 20 Buy Annie Thabet Individual 13. Mar 20 13. Mar 20 4,000 CA$14.58 CA$58,327
12. Mar 20 Buy William O'Reilly Individual 12. Mar 20 12. Mar 20 2,000 CA$15.00 CA$30,000
12. Mar 20 Buy Brian Hedges Individual 12. Mar 20 12. Mar 20 10,000 CA$14.89 CA$148,900
09. Mar 20 Buy Brian Hedges Individual 09. Mar 20 09. Mar 20 10,000 CA$17.95 CA$179,454
28. Feb 20 Buy Brian Hedges Individual 27. Feb 20 27. Feb 20 5,928 CA$19.62 CA$115,055
26. Feb 20 Buy James Dinning Individual 26. Feb 20 26. Feb 20 2,000 CA$20.49 CA$40,980
26. Feb 20 Buy John Tulloch Individual 26. Feb 20 26. Feb 20 5,000 CA$20.72 CA$103,095
18. Feb 20 Sell Ryan MacDermid Individual 14. Feb 20 14. Feb 20 -1,366 CA$21.86 CA$-29,861
18. Feb 20 Buy John Tulloch Individual 14. Feb 20 14. Feb 20 4,000 CA$21.56 CA$86,199
14. Feb 20 Buy Alice Laberge Individual 14. Feb 20 14. Feb 20 500 CA$21.60 CA$10,800
14. Feb 20 Buy James Dinning Individual 14. Feb 20 14. Feb 20 2,500 CA$21.69 CA$54,235
18. Dec 19 Sell Brian Hedges Individual 17. Dec 19 18. Dec 19 -9,000 CA$22.80 CA$-205,022
13. Sep 19 Buy John Clark Individual 12. Sep 19 12. Sep 19 6,000 CA$21.33 CA$127,980
28. Aug 19 Buy Brian Hedges Individual 26. Aug 19 26. Aug 19 9,000 CA$19.84 CA$176,858
27. Aug 19 Buy Annie Thabet Individual 22. Aug 19 26. Aug 19 4,900 CA$20.21 CA$96,856
26. Aug 19 Buy William O'Reilly Individual 26. Aug 19 26. Aug 19 2,000 CA$19.50 CA$39,000
22. Aug 19 Buy John Clark Individual 22. Aug 19 22. Aug 19 3,000 CA$20.55 CA$61,614
21. Aug 19 Buy James Dinning Individual 21. Aug 19 21. Aug 19 2,500 CA$20.34 CA$50,851
21. Aug 19 Buy William O'Reilly Individual 21. Aug 19 21. Aug 19 5,000 CA$20.18 CA$100,900
X
Management checks
We assess Russel Metals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Russel Metals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RUS News

Simply Wall St News

Why Russel Metals Inc. (TSE:RUS) Could Be Your Next Investment

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … If you're interested in understanding beyond my broad commentary, read the full report on Russel Metals here.Good value with proven track record and pays a dividend RUS has a strong track record of performance. … TSX:RUS Historical Dividend Yield, September 3rd 2019 Next Steps: For Russel Metals, I've compiled three fundamental factors you should look at: Future Outlook: What are well-informed industry analysts predicting for RUS’s future growth?

Simply Wall St -

Trade Alert: The Independent Director Of Russel Metals Inc. (TSE:RUS), William O'Reilly, Has Just Spent CA$101k Buying Shares

Check out our latest analysis for Russel Metals Russel Metals Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Independent Director, Alain Benedetti, sold CA$243k worth of shares at a price of CA$24.32 per share. … Insiders own 1.0% of Russel Metals shares, worth about CA$12m, according to our data. … Insiders likely see value in Russel Metals shares, given these transactions (along with notable insider ownership of the company).

Simply Wall St -

Should You Take Comfort From Insider Transactions At Russel Metals Inc. (TSE:RUS)?

So shareholders might well want to know whether insiders have been buying or selling shares in Russel Metals Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Russel Metals Russel Metals Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Independent Director, Alain Benedetti, sold CA$243k worth of shares at a price of CA$24.32 per share. … In the last twelve months there was more buying than selling by Russel Metals insiders.

Simply Wall St -

Is There An Opportunity With Russel Metals Inc.'s (TSE:RUS) 44% Undervaluation?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$145.4m CA$155.4m CA$163.6m CA$170.6m CA$176.7m CA$182.1m CA$187.1m CA$191.8m CA$196.3m CA$200.6m Growth Rate Estimate Source Analyst x2 Analyst x1 Est @ 5.27% Est @ 4.27% Est @ 3.57% Est @ 3.09% Est @ 2.74% Est @ 2.5% Est @ 2.34% Est @ 2.22% Present Value (CA$, Millions) Discounted @ 9.06% CA$133.3 CA$130.7 CA$126.1 CA$120.6 CA$114.5 CA$108.2 CA$102.0 CA$95.8 CA$89.9 CA$84.3 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$1.1b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$201m × (1 + 1.9%) ÷ (9.1% – 1.9%) = CA$2.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$2.9b ÷ ( 1 + 9.1%)10 = CA$1.21b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$2.31b. … TSX:RUS Intrinsic value, August 1st 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

At CA$20.81, Is Russel Metals Inc. (TSE:RUS) Worth Looking At Closely?

Let’s take a look at Russel Metals’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Great news for investors – Russel Metals is still trading at a fairly cheap price. … However, given that Russel Metals’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future.

Simply Wall St -

What To Know Before Buying Russel Metals Inc. (TSE:RUS) For Its Dividend

(TSE:RUS) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. With Russel Metals yielding 6.9% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. We'd guess that plenty of investors have purchased it for the income. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Russel Metals has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion To summarise, shareholders should always check that Russel Metals's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is Russel Metals Inc. (TSE:RUS) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Russel Metals: 22% = CA$215m ÷ CA$988m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Russel Metals Have A Good Return On Equity? … Combining Russel Metals's Debt And Its 22% Return On Equity Although Russel Metals does use debt, its debt to equity ratio of 0.61 is still low.

Simply Wall St -

Imagine Owning Russel Metals (TSE:RUS) And Wondering If The 37% Share Price Slide Is Justified

During five years of share price growth, Russel Metals moved from a loss to profitability. … We note that for Russel Metals the TSR over the last 5 years was -14%, which is better than the share price return mentioned above. … Russel Metals is not the only stock insiders are buying.

Simply Wall St -

Why Russel Metals Inc.’s (TSE:RUS) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Russel Metals: 0.21 = CA$328m ÷ (CA$2.2b - CA$636m) (Based on the trailing twelve months to March 2019.) Therefore, Russel Metals has an ROCE of 21%. … What Are Current Liabilities, And How Do They Affect Russel Metals's ROCE? … Our Take On Russel Metals's ROCE Low current liabilities and high ROCE is a good combination, making Russel Metals look quite interesting.

Simply Wall St -

Looking At Russel Metals Inc. (TSE:RUS) From All Angles

For those interested in digger a bit deeper into my commentary, read the full report on Russel Metals here. … TSX:RUS Historical Dividend Yield, May 21st 2019 Next Steps: For Russel Metals, I've compiled three relevant aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for RUS’s future growth? … Take a look at our free research report of analyst consensus for RUS’s outlook.

Simply Wall St -

RUS Company Info

Description

Russel Metals Inc., a metals distribution company, distributes steel and other metal products in North America. The company operates in three segments: Metal Service Centers, Energy Products, and Steel Distributors. The Metal Service Centers segment sells plates, flat rolled carbon, stainless steel, aluminum, and other non-ferrous specialty metal products, as well as general line steel products, such as plates, structural, bars, sheets, pipes, tubing, and hollow structural steel tubing. It also offers services, including shearing, slitting, and cutting to length; laser, oxy-fuel, and plasma cutting; stretcher and traditional leveling; beam drilling, notching, coping, and tee-splitting; tube laser processing and saw cutting; edge trimming; and cambering. This segment serves customers in industries, such as machinery and equipment manufacturing, construction, ship building, and natural resources. The Energy Products segment distributes oil country tubular goods, line pipes, tubes, valves, flanges, and fittings primarily to energy industry. The Steel Distributors segment operates as a steel distributor for steel service centers and large equipment manufactures. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.

Details
Name: Russel Metals Inc.
RUS
Exchange: TSX
Founded: 1929
CA$817,732,460
62,184,978
Website: http://www.russelmetals.com
Address: Russel Metals Inc.
6600 Financial Drive,
Mississauga,
Ontario, L5N 7J6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX RUS Common Shares The Toronto Stock Exchange CA CAD 18. Apr 1973
OTCPK RUSM.F Common Shares Pink Sheets LLC US USD 18. Apr 1973
DB RMZ Common Shares Deutsche Boerse AG DE EUR 18. Apr 1973
Number of employees
Current staff
Staff numbers
3,400
Russel Metals employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 04:51
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.