CluenexReliance, Inc. RS
Reliance, Inc. scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Reliance, Inc. does
Reliance Inc operates as a metal service center, processing and distributing value-added steel, aluminum, and brass products to a diverse base of over 125,000 industrial customers. Revenue flows from smaller, high-frequency orders where manufacturers pay for precision-cut materials delivered just-in-time.
- What it does best
Reliance converts raw metals into custom parts faster than peers, driving a gross margin of 28.2% that doubles competitors like Nucor at 14.0%. This edge stems from a massive, decentralized network of service centers that makes local delivery speed nearly impossible to replicate quickly.
- The main risk
Demand cyclicality remains the primary threat, as heavy manufacturing slowdowns directly compress order volumes. With revenue growth stalled at 3.3% and operating margins sitting at 7.8%, any broader industrial contraction hits profitability immediately.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin leads the pack at 28.2%, but operating margin compresses down to 7.8% due to high SG&A expenses across hundreds of service centers. Free cash flow margin lands at 3.4%, showing modest cash conversion relative to revenue scale.
The moat relies on sheer scale and customer lock-in through customized inventory management services. Gross margin sits in the middle of the pack at the 47th sector percentile, limiting pricing power against intense local competition.
Revenue growth inches forward at 3.3%, reflecting a sluggish demand environment compared to historical peaks. History annual summary shows revenue recovering slowly from 2024 lows, indicating stagnant organic volume.
Debt-to-equity sits at 0.2, and interest coverage is 19.5x, meaning debt costs are comfortably manageable. Free cash flow came in at $540 million, supporting $501 million in buybacks. The balance sheet remains on solid footing.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
3 sold $2.5M outside pre-planned sales.
Our sealed record on RS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Reliance, Inc. scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 3 sold $2.5M outside pre-planned sales.
Oct 21, 2026.
See RS today
- Today's verdict on RS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Reliance, Inc. (RS)”, https://cluenex.com/stocks/rs/, data as of Oct 10, 2026.