Reliance vs Steel Dynamics
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KIRA’s take AI analyst
I put Reliance and Steel Dynamics side by side, using each one’s latest annual report. Here is what stands out:
- Steel Dynamics is the larger business, with $18.2B of revenue in fiscal 2025 against $14.3B for Reliance.
- Steel Dynamics kept more of each dollar of sales as operating profit (8.1% operating margin, against 7.1%).
- Reliance turned more of its sales into free cash flow (3.5% FCF margin, against 2.8%).
- Steel Dynamics earned a higher return on the capital invested in it (10.0%, against 9.4%).
- Investors pay more for each dollar of Reliance’s earnings: a P/E of 27.5x against 17.5x for Steel Dynamics.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Reliance
RS
3/10
FCF marginNet debt / EBITDAShare count change
Steel Dynamics
STLD
6/10
Revenue growth5-year growthOperating marginNet marginReturn on capitalReturn on equity
Side by side
Best in the row
| Latest fiscal year | RS FY25 | STLD FY25 |
|---|---|---|
| Size | ||
| Market cap | $21.9B | $34.1B |
| Revenue | $14.3B | $18.2B |
| Free cash flow | $503M | $502M |
| Net income | $739M | $1.2B |
| Growth | ||
| Revenue growth | 3.3% | 3.6% |
| 5-year growth | 10.2% | 13.6% |
| Share count change | −6.0% | −5.0% |
| Profitability | ||
| Gross margin | — | 13.2% |
| Operating margin | 7.1% | 8.1% |
| Net margin | 5.2% | 6.5% |
| FCF margin | 3.5% | 2.8% |
| Return on capital | 9.4% | 10.0% |
| Return on equity | 10.3% | 13.3% |
| Balance sheet | ||
| Net debt | $1.2B | $3.4B |
| Net debt / EBITDA | 0.9x | 1.7x |
| Dividends and buybacks | $594M | $1.2B |
| Valuation & quality | ||
| P/E | 27.5x | 17.5x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.