📊 AI Stock Rating — Summary

RS achieved a revenue of $3.651 billion in the latest quarter, with an EPS of $3.62 and a net margin of approximately 5.2%. Free cash flow was $180.6 million, down from prior periods but recovering from a dip earlier in the year. Year-over-year, revenue grew from $3.126 billion in the same quarter last year, indicating substantial growth. Profitability remains strong with an EPS increase from $1.95 in the prior year's corresponding quarter to $3.62. The company's total equity stands at $7.316 billion with a debt/equity ratio positioning of 0.20, indicating sound financial health. Stock repurchases and debt repayments illustrate a commitment to maintaining a balanced capital structure. RS continues to provide shareholder value through steady dividend distributions each quarter at $1.20 per share. Analyst price targets up to $350 suggest potential for further appreciation. However, with limited year-over-year cash flow growth and some volatility in free cash flow, investors may watch future cash flow consistency closely. On the balance sheet, a modest increase in net debt was observed but remains manageable with continued positive operating cash flow.

AI Score Breakdown

Revenue Growth — Score: 8/10

RS demonstrated strong revenue growth, increasing from $3.126 billion to $3.651 billion year-over-year, fueled by robust sales across its operational sectors. This growth rate shows both stability and positive momentum.

Profitability — Score: 8/10

RS's profitability is solid, with improved net income and EPS growth noted consistently across quarters. The increase in EPS from 1.95 to 3.62 year-over-year reflects effective cost management and operational efficiency.

Cash Flow Quality — Score: 6/10

While RS provides healthy free cash flow generation, the figures have shown some volatility. Cash flow stability could be an area for vigilance moving forward, despite positive operating cash flows and consistent dividends.

Leverage & Balance Sheet — Score: 9/10

RS maintains a strong balance sheet with a low debt/equity ratio and ample equity. The debt levels have slightly increased but are well-covered by persistent cash flows and the company's liquidity position.

Shareholder Returns — Score: 6/10

Shareholder returns are positive, underpinned by consistent dividends and share buybacks. However, substantial price appreciation wasn't noted. Total returns should be reassessed concerning market conditions and stock performance.

Analyst Sentiment & Valuation — Score: 6/10

Analyst price targets suggest upside potential. However, specific valuation ratios are not provided. Generally, the firm's financial metrics hint at a possibly fair to slightly undervalued position relative to industry standards.

⚠ AI-generated — informational only, not financial advice.