Russel Metals

RUS-T

TSE:RUS

14.77
0.05 (0.34%)
Russel Metals Inc. is one of the largest North American suppliers of metal products, with operations across Canada and the United States. The company was originally established in 1785 by John Russel as John Russel & Co.
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Analysis and Opinions about RUS-T

Signal
Opinion
Expert
WAIT
WAIT
February 21, 2020
He doesn't like the base metals yet. The price of copper as a barometer hasn't shown any movement. He has to see what will happen with the global economy. Once copper rises above $3.00, he would start looking into it more.
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Russel Metals (RUS-T)
February 21, 2020
He doesn't like the base metals yet. The price of copper as a barometer hasn't shown any movement. He has to see what will happen with the global economy. Once copper rises above $3.00, he would start looking into it more.
DON'T BUY
DON'T BUY
February 3, 2020
The chart shows a long-term downtrend, though it's trying to make a new uptrend. He likes RUS for paying a dividend, but if it breaks below $20 there will be more downside.
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Russel Metals (RUS-T)
February 3, 2020
The chart shows a long-term downtrend, though it's trying to make a new uptrend. He likes RUS for paying a dividend, but if it breaks below $20 there will be more downside.
WEAK BUY
WEAK BUY
January 23, 2020
It has cut its dividend in previous cycles. They got hit in trade wars. The dividend is good and the cash flow is and good and he thinks it is a well managed company, but you have to commit to an expanding economy to own a lot.
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Russel Metals (RUS-T)
January 23, 2020
It has cut its dividend in previous cycles. They got hit in trade wars. The dividend is good and the cash flow is and good and he thinks it is a well managed company, but you have to commit to an expanding economy to own a lot.
BUY
BUY
January 17, 2020
A cyclical that is a reasonably priced industrial. He holds it primarily for the dividend with a 43% payout ratio. There are no issues with the balance sheet and it trades at 11 times earnings and 7 times EBITDA versus the market at 14 times. Price momentum could be better, but the valuation is compelling enough to own it. Yield 6.7%
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Russel Metals (RUS-T)
January 17, 2020
A cyclical that is a reasonably priced industrial. He holds it primarily for the dividend with a 43% payout ratio. There are no issues with the balance sheet and it trades at 11 times earnings and 7 times EBITDA versus the market at 14 times. Price momentum could be better, but the valuation is compelling enough to own it. Yield 6.7%
TOP PICK
TOP PICK
December 13, 2019
We've been in an industrial recession through the summer and fall. They do steel distribution. Not competitive and the stock was hit due to the recession. In NA, if business gets better, the stock will go up. A 6% dividend. (Analysts’ price target is $23.67)
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Russel Metals (RUS-T)
December 13, 2019
We've been in an industrial recession through the summer and fall. They do steel distribution. Not competitive and the stock was hit due to the recession. In NA, if business gets better, the stock will go up. A 6% dividend. (Analysts’ price target is $23.67)
HOLD
HOLD
December 11, 2019
A name that is getting sold off for tax losses. There are challenges and the balance sheet is okay. The good news is that the company stays steel prices are bottoming as are rig counts. It is extraordinarily cheap at these levels. He thinks they will still be able to maintain dividends. If you believe we are not going into a recession, this would be a good buy.
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Russel Metals (RUS-T)
December 11, 2019
A name that is getting sold off for tax losses. There are challenges and the balance sheet is okay. The good news is that the company stays steel prices are bottoming as are rig counts. It is extraordinarily cheap at these levels. He thinks they will still be able to maintain dividends. If you believe we are not going into a recession, this would be a good buy.
BUY WEAKNESS
BUY WEAKNESS
September 23, 2019
It is a unique company. He expects their earnings to drop but they are counter cyclical because they harvest their inventory in parts of the cycle so their cash flow actually goes up quite high then. The dividend is quite safe. You have to look at cash flow over a 10 year period. Below $20 is probably not a bad entry point.
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Russel Metals (RUS-T)
September 23, 2019
It is a unique company. He expects their earnings to drop but they are counter cyclical because they harvest their inventory in parts of the cycle so their cash flow actually goes up quite high then. The dividend is quite safe. You have to look at cash flow over a 10 year period. Below $20 is probably not a bad entry point.
COMMENT
COMMENT
September 10, 2019
A cyclical business, though RUS has survived many down cycles. Well-managed company. Be prepared for the dividend to be cut in tough times and to rise when it's good.
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Russel Metals (RUS-T)
September 10, 2019
A cyclical business, though RUS has survived many down cycles. Well-managed company. Be prepared for the dividend to be cut in tough times and to rise when it's good.
BUY
BUY
September 3, 2019
A better valuation than US Steel. He prefers it. The 7.64% dividend is very attractive in this space. For an RRSP, RUS pays good income.
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Russel Metals (RUS-T)
September 3, 2019
A better valuation than US Steel. He prefers it. The 7.64% dividend is very attractive in this space. For an RRSP, RUS pays good income.
BUY WEAKNESS
BUY WEAKNESS
September 3, 2019
He just bought it, because the stock has hit lows and is paying over a 7% yield. They just did a small acquisition in the U.S. They have experience maintaining their dividend through all phases of the economic cycle. Strong management. A great time to enter a cyclical business like this, but add on weakness.
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Russel Metals (RUS-T)
September 3, 2019
He just bought it, because the stock has hit lows and is paying over a 7% yield. They just did a small acquisition in the U.S. They have experience maintaining their dividend through all phases of the economic cycle. Strong management. A great time to enter a cyclical business like this, but add on weakness.
BUY WEAKNESS
BUY WEAKNESS
August 14, 2019
Average down? They just had earnings, which are down substantially. Blame it on tariffs and lower demand though RUS insists they have steady demand. The stock is cheap now. The balance sheet is fine, but a name like this is not very liquid. Yes, you can add at $18, today's level. When you average down, remember that stocks exagerrate either way, up and down.
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Russel Metals (RUS-T)
August 14, 2019
Average down? They just had earnings, which are down substantially. Blame it on tariffs and lower demand though RUS insists they have steady demand. The stock is cheap now. The balance sheet is fine, but a name like this is not very liquid. Yes, you can add at $18, today's level. When you average down, remember that stocks exagerrate either way, up and down.
DON'T BUY
DON'T BUY
August 13, 2019
The 10-year chart shows an uptrend from 2016-8, but has since fallen lower. He expects more US dollar strength that'll pressure RUS. Yes, RUS pays a strong dividend, but weigh it against a downtrend.
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Russel Metals (RUS-T)
August 13, 2019
The 10-year chart shows an uptrend from 2016-8, but has since fallen lower. He expects more US dollar strength that'll pressure RUS. Yes, RUS pays a strong dividend, but weigh it against a downtrend.
HOLD
HOLD
August 12, 2019
He's owned it in the past. A well-run business in steel distribution where there is volatility due to steel prices. Pays a good dividend and generates decent cash flow. It's more defensive than its peers. Hang onto it and the dividend is safe.
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Russel Metals (RUS-T)
August 12, 2019
He's owned it in the past. A well-run business in steel distribution where there is volatility due to steel prices. Pays a good dividend and generates decent cash flow. It's more defensive than its peers. Hang onto it and the dividend is safe.
BUY
BUY
June 14, 2019
Dividend safe. It's just a yard for steel to go through. Doesn't lose money. The retracement in the stock price is telling you that there's a recession in middle America right now. Likes the stock at this price. Sell at $30, buy under $20. Income producer you just stick in the portfolio.
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Russel Metals (RUS-T)
June 14, 2019
Dividend safe. It's just a yard for steel to go through. Doesn't lose money. The retracement in the stock price is telling you that there's a recession in middle America right now. Likes the stock at this price. Sell at $30, buy under $20. Income producer you just stick in the portfolio.
BUY
BUY
May 29, 2019
Likes it right now. Well positioned. Outperformed throughout the whole aluminum tariff debacle. Not a bad opportunity to get in at today's valuation of $21.46.
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Likes it right now. Well positioned. Outperformed throughout the whole aluminum tariff debacle. Not a bad opportunity to get in at today's valuation of $21.46.
BUY WEAKNESS
BUY WEAKNESS
April 30, 2019

TransMountain will have no effect on Russel. A great company in a tough business. He sold it last August and took profits. Over time, RUS will build through acquisition. Pays a good dividend. He will buy below $20. You can trade it between $20 and 30.

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Russel Metals (RUS-T)
April 30, 2019

TransMountain will have no effect on Russel. A great company in a tough business. He sold it last August and took profits. Over time, RUS will build through acquisition. Pays a good dividend. He will buy below $20. You can trade it between $20 and 30.

BUY
BUY
January 18, 2019
Metal tariffs caused this to fall. Also, steel futures are down. But it pays a safe 6.5% dividend and trades at a reasonable level. Likes it here.
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Russel Metals (RUS-T)
January 18, 2019
Metal tariffs caused this to fall. Also, steel futures are down. But it pays a safe 6.5% dividend and trades at a reasonable level. Likes it here.
BUY WEAKNESS
BUY WEAKNESS
January 17, 2019
It is a steel distributor with operations in Canada and the US. They distribute whether steel prices are high or low but can get caught when prices move too quickly. A good long term hold.
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Russel Metals (RUS-T)
January 17, 2019
It is a steel distributor with operations in Canada and the US. They distribute whether steel prices are high or low but can get caught when prices move too quickly. A good long term hold.
DON'T BUY
DON'T BUY
January 15, 2019

He sold in the August before it fell 20%. Current levels are attractive. Good managers, but they are in a cyclical, competitive business, some times there'll be volatility. Maybe buy in the $15-20 area. In a downturn, they'll likely cut their dividend.

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Russel Metals (RUS-T)
January 15, 2019

He sold in the August before it fell 20%. Current levels are attractive. Good managers, but they are in a cyclical, competitive business, some times there'll be volatility. Maybe buy in the $15-20 area. In a downturn, they'll likely cut their dividend.

VAGUE
VAGUE
January 11, 2019
A lot of their business focuses on the oil and gas sector. They pay a decent dividend. He has never owned it. With LNG plans in BC moving forward, he thinks this should help.
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Russel Metals (RUS-T)
January 11, 2019
A lot of their business focuses on the oil and gas sector. They pay a decent dividend. He has never owned it. With LNG plans in BC moving forward, he thinks this should help.
COMMENT
COMMENT
January 3, 2019
Fundamentally it trades between 1 and 2 times book value. When it gets bellow book value is time to get in. Book value is between 16 and 17 and the stock is trading at 21. Probably has 5 bucks on the downside before is a buy. But balance sheet is fine. And the earnings continue to rise nicely.
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Russel Metals (RUS-T)
January 3, 2019
Fundamentally it trades between 1 and 2 times book value. When it gets bellow book value is time to get in. Book value is between 16 and 17 and the stock is trading at 21. Probably has 5 bucks on the downside before is a buy. But balance sheet is fine. And the earnings continue to rise nicely.
DON'T BUY
DON'T BUY
November 28, 2018
In no-man's land, trapped in weak cyclical stocks. Trades at 23% ROE and 6x EBITDA. Great, sustainable yield. But he prefers to buy stocks like this on the upswing, not the current downswing.
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Russel Metals (RUS-T)
November 28, 2018
In no-man's land, trapped in weak cyclical stocks. Trades at 23% ROE and 6x EBITDA. Great, sustainable yield. But he prefers to buy stocks like this on the upswing, not the current downswing.
BUY
BUY
October 26, 2018

All industrials across North America have sold off, not just RUS. They're enjoying their highest margins since 2008. The balance sheet and payout ratio are fine. A smaller, illiquid name. In a bear market, this will get hit more. But he likes it even at current levels and thinks it is oversold.

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Russel Metals (RUS-T)
October 26, 2018

All industrials across North America have sold off, not just RUS. They're enjoying their highest margins since 2008. The balance sheet and payout ratio are fine. A smaller, illiquid name. In a bear market, this will get hit more. But he likes it even at current levels and thinks it is oversold.

BUY WEAKNESS
BUY WEAKNESS
September 26, 2018

He recently suggested selling this company. They are exposed to the energy sector and the economy in general. It had gone ex-dividend already and it has fallen since his recommendation. He would buy it again on a further pullback.

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Russel Metals (RUS-T)
September 26, 2018

He recently suggested selling this company. They are exposed to the energy sector and the economy in general. It had gone ex-dividend already and it has fallen since his recommendation. He would buy it again on a further pullback.

SELL
SELL
August 16, 2018

Is one of the steel plays in Canada which was seen as defensive given the tariffs. Have seen people take profits after good results reported. It is still a dicey sector, with tariff concerns and economy and infrastructure concerns. Investors are getting concerned about this sector. He suggests taking profits now and see what happens in fall.

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Russel Metals (RUS-T)
August 16, 2018

Is one of the steel plays in Canada which was seen as defensive given the tariffs. Have seen people take profits after good results reported. It is still a dicey sector, with tariff concerns and economy and infrastructure concerns. Investors are getting concerned about this sector. He suggests taking profits now and see what happens in fall.

WATCH
WATCH
July 25, 2018

He did own it after it broke a technical level. He likes the company and its yield. There's uncertainty around the tariffs, which he'd like to see resolved before stepping back in. Pays a 5.6% yield.

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Russel Metals (RUS-T)
July 25, 2018

He did own it after it broke a technical level. He likes the company and its yield. There's uncertainty around the tariffs, which he'd like to see resolved before stepping back in. Pays a 5.6% yield.

BUY WEAKNESS
BUY WEAKNESS
July 13, 2018

It has broken down on the technical chart and if it breaks down further, it could re-test $22 key support. He would buy on weakness based on seasonal patterns into October. Yield 5.6%.

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Russel Metals (RUS-T)
July 13, 2018

It has broken down on the technical chart and if it breaks down further, it could re-test $22 key support. He would buy on weakness based on seasonal patterns into October. Yield 5.6%.

HOLD
HOLD
July 3, 2018

It has been caught a little in the trade war with the US, due to its cross-border business dealings in steel. The fundamentals still look strong for the company, he says. It is a great management team. He would sell above $30 and would buy around $25. Otherwise he would hold it here. Yield 5%.

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It has been caught a little in the trade war with the US, due to its cross-border business dealings in steel. The fundamentals still look strong for the company, he says. It is a great management team. He would sell above $30 and would buy around $25. Otherwise he would hold it here. Yield 5%.

COMMENT
COMMENT
June 6, 2018

A steel and infrastructure play. He used to own it. The Trump steel tariffs have hit this stock, but Russel doesn't sell steel into the States, so it should not be hit by the tariffs. He likes this stock, but is growing concerned about limited infrastructure spending in North America.

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A steel and infrastructure play. He used to own it. The Trump steel tariffs have hit this stock, but Russel doesn't sell steel into the States, so it should not be hit by the tariffs. He likes this stock, but is growing concerned about limited infrastructure spending in North America.

COMMENT
COMMENT
May 11, 2018

They took a hard look at this in the commodity washout of 2016. It is a good long-term name to own. Consistent cash flows. Very cyclical though. They would really look at this if it was below $20. Yield is over 5%.

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They took a hard look at this in the commodity washout of 2016. It is a good long-term name to own. Consistent cash flows. Very cyclical though. They would really look at this if it was below $20. Yield is over 5%.

COMMENT
COMMENT
May 9, 2018

He does not like the materials space right now as there is no upward momentum in this sector presently. Given recent inflation trends, it is not being confirmed with upward price movements. He would not go here.

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He does not like the materials space right now as there is no upward momentum in this sector presently. Given recent inflation trends, it is not being confirmed with upward price movements. He would not go here.

PAST TOP PICK
PAST TOP PICK
May 3, 2018

(A Top Pick June 16/17 – Up 20.6%.) Pays a nice dividend. They still see growth here. The risk here is US steel tariffs.

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(A Top Pick June 16/17 – Up 20.6%.) Pays a nice dividend. They still see growth here. The risk here is US steel tariffs.

WATCH
WATCH
May 1, 2018

A Canadian play. The Trump threats are much ado about nothing. He's not worried. The chart is choppy, but may have potential. He bought a small amount when it was oversold. He'll watch it.

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A Canadian play. The Trump threats are much ado about nothing. He's not worried. The chart is choppy, but may have potential. He bought a small amount when it was oversold. He'll watch it.

COMMENT
COMMENT
April 10, 2018

Looks good. Support level is at the current price. Volume is okay. It's been going sideways long enough to create a support level. Exit below $27. The 5.5% dividend is great. Resistance is likely at $29. Bigger resistance at $31 possibly in the late-summer/early-fall. Next support level is $25 where you may start going through this cycle again. All mineral and energy stocks are traders, so five-year holds are not great, because you can lose money. That's why the S&P has beaten the TSX.

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Russel Metals (RUS-T)
April 10, 2018

Looks good. Support level is at the current price. Volume is okay. It's been going sideways long enough to create a support level. Exit below $27. The 5.5% dividend is great. Resistance is likely at $29. Bigger resistance at $31 possibly in the late-summer/early-fall. Next support level is $25 where you may start going through this cycle again. All mineral and energy stocks are traders, so five-year holds are not great, because you can lose money. That's why the S&P has beaten the TSX.

BUY WEAKNESS
BUY WEAKNESS
March 12, 2018

They are embroiled in this NAFTA tariff thing right now. It could move steel prices in the right direction for them since they buy and stock steel. You are at risk of something volatile happening either to the upside or downside. If it got below $25 it would be attractive. This is a difficult business generally. The management team really respect their shareholders.

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Russel Metals (RUS-T)
March 12, 2018

They are embroiled in this NAFTA tariff thing right now. It could move steel prices in the right direction for them since they buy and stock steel. You are at risk of something volatile happening either to the upside or downside. If it got below $25 it would be attractive. This is a difficult business generally. The management team really respect their shareholders.

HOLD
HOLD
January 24, 2018

Has this on his radar screen. It’s one that has a nice dividend, but also has a growth profile. As the oil/gas business continues to drill and do well, they are producing more pipe for that, which really drives their earnings.

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Russel Metals (RUS-T)
January 24, 2018

Has this on his radar screen. It’s one that has a nice dividend, but also has a growth profile. As the oil/gas business continues to drill and do well, they are producing more pipe for that, which really drives their earnings.

PARTIAL SELL
PARTIAL SELL
January 8, 2018

Not a stock he has looked at in a long while. It looks like it had a pretty decent rally. It has not done much in 10 years, however. He would look to lighten up and maybe buy it back if it gets to the lows. It is an underperformer.

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Russel Metals (RUS-T)
January 8, 2018

Not a stock he has looked at in a long while. It looks like it had a pretty decent rally. It has not done much in 10 years, however. He would look to lighten up and maybe buy it back if it gets to the lows. It is an underperformer.

COMMENT
COMMENT
December 22, 2017

Historically, steel stocks like this do very, very well from October right through until the end of the year, and then have another move into the spring time. Right now, we are just about ready to enter into the period of seasonal strength. If it moves above its trading range now, that will confirm that once again it is going through its period of seasonal strength.

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Russel Metals (RUS-T)
December 22, 2017

Historically, steel stocks like this do very, very well from October right through until the end of the year, and then have another move into the spring time. Right now, we are just about ready to enter into the period of seasonal strength. If it moves above its trading range now, that will confirm that once again it is going through its period of seasonal strength.

BUY WEAKNESS
BUY WEAKNESS
December 15, 2017

He likes this for recovering steel prices, steady demand, and its position in Canada as the leading distributor. The yield looks very sustainable. Has a 76% payout ratio. Balance sheet looks really good for M&A, because they want to buy mom and pop shops and be a consolidator. On strengthening steel prices, he models them growing cash flows 25% from 2016 to 2018. However, on a PE basis, it’s a little more expensive than its peers, but on an EV to EBITDA basis, it is in line. He would look to buy this on a bit of a pullback. Pays a real nice dividend.

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Russel Metals (RUS-T)
December 15, 2017

He likes this for recovering steel prices, steady demand, and its position in Canada as the leading distributor. The yield looks very sustainable. Has a 76% payout ratio. Balance sheet looks really good for M&A, because they want to buy mom and pop shops and be a consolidator. On strengthening steel prices, he models them growing cash flows 25% from 2016 to 2018. However, on a PE basis, it’s a little more expensive than its peers, but on an EV to EBITDA basis, it is in line. He would look to buy this on a bit of a pullback. Pays a real nice dividend.

COMMENT
COMMENT
November 24, 2017

Has exposure to pipe fabrication. So long as horizontal drilling is going to continue apace throughout North America, they should have good exposure. He likes management.

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Russel Metals (RUS-T)
November 24, 2017

Has exposure to pipe fabrication. So long as horizontal drilling is going to continue apace throughout North America, they should have good exposure. He likes management.