One-glance verdict
Undervalued
$87.94 our estimate vs market $64.36
27% below our estimate, below the bear case
Fundamentals snapshot
Russel Metals Inc.
RUSMF · PNK · Industrials · Industrial Distribution
Current price
$64.36
52-week range
$27.78 - $66.95
Market cap
$3.53B
Balance sheet
Healthy
9.53x Adequate
Net debt $233.98M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 8.9% last year.
- Reward Returns 12.9% on equity, ahead of 25% of its peers.
- Risk Net debt grew 516.2% over 3 years.
- Risk Stock trades 176.4% above its 5-year average P/E.
What this company does
Russel Metals Inc.
Russel Metals Inc. is a business that sells various steel and metal products, like different types of steel bars, pipes, and even metals like aluminum, mainly to other businesses in Canada and the United States. Their money primarily comes from selling these metals through their service centers and specialized stores for the energy industry, which matters because it shows how broadly they reach different industrial customers. This is important for understanding how well they are doing in selling their core products.
How the company got here
Russel Metals Inc. has a long history, tracing its roots back to 1929. Over the decades, it has grown and evolved into a significant player in the metals distribution industry. The company's journey has been shaped by strategic decisions to expand its reach across Canada and the United States, and to diversify its offerings within the metals sector. This steady growth has positioned Russel Metals as a reliable supplier in the industrial landscape.
What it actually does
Imagine a giant hardware store, but instead of selling hammers and nails to homeowners, Russel Metals sells large quantities of various metals to businesses. They are a middleman, buying metal in bulk from producers and then cutting, shaping, and distributing it to manufacturers and other industrial customers. Think of them as a crucial link in the chain that gets raw metal materials to the companies that build everything from cars to buildings.
Metals Service Centers
This is the largest part of Russel Metals' business, acting like a comprehensive metals supermarket for a wide range of industries. They stock and distribute a vast array of metal products, including common carbon steel, specialized stainless steel, and lightweight aluminum, in many different forms like sheets, bars, and tubes. Businesses that need specific metal components for their manufacturing processes rely on these centers for timely delivery and precise specifications.
Energy Field Stores
This segment specifically caters to the needs of the energy sector, providing specialized products essential for oil and gas operations. They supply items like flanges, valves, and fittings, which are critical components in pipelines and processing facilities. This focused approach allows them to serve a niche but vital market within the broader industrial economy.
Steel Distribution
In this part of the business, Russel Metals acts as a wholesaler of steel products. They sell large volumes of steel, such as plates, beams, and pipes, primarily to other steel service centers and manufacturers who then use these materials to create finished goods. This segment plays a key role in ensuring a steady flow of essential steel materials throughout the supply chain.
What management is betting on now
Russel Metals' management is focused on strengthening its position as a leading distributor of metal products. A key priority is likely to be optimizing its extensive network of service centers and stores to ensure efficient delivery and customer satisfaction. They are also probably looking for opportunities to grow by acquiring other businesses or expanding into new geographic areas or product lines that complement their existing operations. The company's strategy revolves around being a reliable and comprehensive source for industrial metals.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $87.94 vs current price $64.36
Our most-likely fair value is $87.94 a share — about 36.6% above today's price of $64.36, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $234.0M. Interest coverage 9.5x.
Net debt
$233.98M
Interest coverage
9.53x
Russel Metals Inc.'s profit covers its interest bill about 9.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
RUSMF
BASELINE
Russel Metals Inc.
Total debt $343.84M Interest coverage 9.53x This is the baseline the peer rows are being compared against.
Total debt $2.59B Interest coverage 3.73x -61% vs RUSMF Carries about 2.6x less debt cushion than RUSMF.
Total debt $3.61B Interest coverage 6.07x -36% vs RUSMF Carries about 1.6x less debt cushion than RUSMF.
Total debt $699.30M Interest coverage 16.03x +68% vs RUSMF Carries about 1.7x more debt cushion than RUSMF.
What you should know
The case for and against RUSMF
3 Rewards
3 Risks
Rewards
-
Revenue grew 8.9% last year.
-
Returns 12.9% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 516.2% over 3 years.
-
Stock trades 176.4% above its 5-year average P/E.
-
Operating margin compressed from 9.5% to 6.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.66x
Forward P/E
17.83x
P/B
2.87x
P/S
0.66x
EV/EBITDA
11.42x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
21.1%
Operating margin
6.7%
Net margin
4.0%
ROE
12.9%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.28x
Current ratio
2.61x
Quick ratio
1.17x
Total debt
$343.84M
Total cash
$109.86M
Growth
How the business has been compounding
Revenue TTM
$3.80B
Revenue 5Y CAGR
-2.9%
EPS TTM
2.84
EPS 5Y CAGR
-20.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$142.31M
Free CF TTM
$89.24M
FCF margin
2.3%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
44.1%
Last ex-div date
2026-08-28