# Russel Metals (RUS-t)



## zylon (Oct 27, 2010)

*Calling all market timers:*
- when is good time to buy RUS for long term hold? 
It stubbornly remains at the top of my "_buy $5,000 Jan 2, 2001_" list.

As of Oct 7, 2011









home page http://www.russelmetals.com/english/index.html
cyclical stock defn
quarterly div (0.30) yields 5.8%
2011 Q3 results expected Nov 3
chart weekly

Performance since Jan 2, 2001
- amount invested (red) decreases with every dividend payout.


----------



## hboy43 (May 10, 2009)

hi:

I bought some last week. I'll add it to the existing heap of RUS. I expect I'll hold it all while.

hboy43


----------



## zylon (Oct 27, 2010)

*EquityClock.com seasonality*



> Analysis has revealed that with a buy date of November 21 and a sell date of September 17, investors have benefited from a total return of 1360.78% over the last 10 years. This scenario has shown positive results in 10 of those periods.
> 
> The buy and hold return for the past 10 years was 557.89%.
> equityclock.com












*@ hboy:* good buy 
This is on my shopping list along with BTE (t)
What I like about RUS is that it's seldom in the news - if ever, and not a target for hot money.


----------



## daddybigbucks (Jan 30, 2011)

i'm a big fan of russel metals as well.

prior to 2008, I always felt it was trading to high and never bought. Then during the crash of 2008, i got a few lots under $10.
It rose steadily since then and i bought more at $24, then it started to decline.
Great dividend and they have a great foundation. Its part of my core holdings and I never watch their financials, just check in to watch their stock price.


----------



## andrewf (Mar 1, 2010)

It's in a pretty strong downtrend. It's also in a highly cyclical sector, so I would at least wait for it to pop back above its 200-day SMA.


----------



## LBCfan (Jan 13, 2011)

Time to revive this thread.

I look a all high-yielders. Haven't dug into the financials yet. Anybody else watching?


----------



## doctrine (Sep 30, 2011)

I always watch it, but metal prices are low and there are rumours of a dividend cut..would avoid, at least until after the cut.


----------



## 0xCC (Jan 5, 2012)

I own a chunk of this and even though the price is way, way down I am not adding to this now. I'm not totally sure they will cut their dividend (they just raised it in the last year) but I would not be shocked if they did. The reason they are down is that they supply metal (I think mostly in the form of pipes) to the energy sector.

Every single press release you see from an energy company saying they are reducing their capital expenditures for the next year probably impacts Russel Metal's revenue over the next year. When/if oil prices start to firm up and energy companies start drilling more then Russel should start doing better. Until then Russel is going to be hurting.


----------



## agent99 (Sep 11, 2013)

LBCfan said:


> Time to revive this thread.
> 
> I look a all high-yielders. Haven't dug into the financials yet. Anybody else watching?


I have owned it since last recession when it was at about $9.00. I bought it then because it should benefit from infrastructure spending. But oil crash is hurting it this time. I don't think financials are too good. I just moved it from my RRIF to taxable account as part of RRIF withdrawal.


----------



## mopar44o (Aug 11, 2017)

Curious if anyone is invested in or has looked into Russel Metals as of late?

Trading near historic lows. Generally seems to normally be closer to $30. Good dividend that is well covered at and is currently paying over 8%.

Recently said the tariffs don't affect them much, more oil industry has had a bigger impact.

Thinking of dumping some underperforming stuff in my kids resp and starting a position there.

Thoughts?


----------



## agent99 (Sep 11, 2013)

I have owned Russel Metals since early 2009. Bought right after markets crashed, for about $10.00 with the little cash I had. I added a little more at some point in TFSA. I did this because I figured the stock would benefit from infrastructure projects that were likely to be undertaken to provide jobs back then. This could happen again, but it seems this time the governments need a faster response, so are distributing helicopter money direct to workforce instead of building infrastructure  

The business is cyclical, so you have to expect share price to be a somewhat volatile. I hold it for the dividend which is substantial. With the demise of shale oil and some other energy business, it will probably take a resurgence in thee economy of USA and Canada for stock to do anything spectacular for a while from where it is. Some analysts suggest $20 as a fair price looking forward. Don't know when we will see $30 again.


----------



## mopar44o (Aug 11, 2017)

agent99 said:


> I have owned Russel Metals since early 2009. Bought right after markets crashed, for about $10.00 with the little cash I had. I added a little more at some point in TFSA. I did this because I figured the stock would benefit from infrastructure projects that were likely to be undertaken to provide jobs back then. This could happen again, but it seems this time the governments need a faster response, so are distributing helicopter money direct to workforce instead of building infrastructure
> 
> The business is cyclical, so you have to expect share price to be a somewhat volatile. I hold it for the dividend which is substantial. With the demise of shale oil and some other energy business, it will probably take a resurgence in thee economy of USA and Canada for stock to do anything spectacular for a while from where it is. Some analysts suggest $20 as a fair price looking forward. Don't know when we will see $30 again.


You seen any risk to the dividend? I forget what the payout ratio was when I last checked but I recall it being sustainable. 

Economies can't get any worse really. And for a FRESP, even if the dividend didn't grow, 8+% is pretty substantial.


----------



## MrMatt (Dec 21, 2011)

mopar44o said:


> Economies can't get any worse really. And for a FRESP, even if the dividend didn't grow, 8+% is pretty substantial.


You might lack imagination, but the universe doesn't.


----------



## agent99 (Sep 11, 2013)

mopar44o said:


> You seen any risk to the dividend? I forget what the payout ratio was when I last checked but I recall it being sustainable.
> 
> Economies can't get any worse really. And for a FRESP, even if the dividend didn't grow, 8+% is pretty substantial.


Yes, I think the dividend is at risk. According to the link below, they paid out 362% of earnings in dividends over past year or ~100% based on their projections for future (can those be relied on?)

RUS Dividend Yield, History & Payout Ratio (Russel Metals) 

This was an earlier analysis









Here’s How We Evaluate Russel Metals Inc.’s (TSE:RUS) Dividend


Dividend paying stocks like Russel Metals Inc. (TSE:RUS) tend to be popular with investors, and for good reason - some...



simplywall.st





I bought for a very low price, and don't own enough of RUS to be concerned, but wouldn't load up the truck on this one.


----------



## like_to_retire (Oct 9, 2016)

mopar44o said:


> Curious if anyone is invested in or has looked into Russel Metals as of late?
> 
> Trading near historic lows. Generally seems to normally be closer to $30. Good dividend that is well covered at and is currently paying over 8%.


I don't agree that the dividend is well covered, but maybe I've missed something since I've owned it.

I owned RUSSEL for many years and enjoyed the dividend, but then they started to add too much debt. The dividend payout ratio is quite high today and to cover their debt they will simply have to lower the dividend. Their profits were all paid out as dividends in the last 12 months. The dividend is 1.52 with an EPS of 0.43. How long can that be sustained, and do they have the cash flow to cover their debt?

Morningstar puts its fair value around $20.02 with a high uncertainty, and TDDI puts a target of $20.25 on it. As a trader, I guess there's some quick money to be made?

TDDI analysis of it says things like:
_EPS growth at RUS is below the industry average, and worse, is declining. The most recent EPS was $0.43, a decrease of -85.18% over the previous year.
Though the industry is experiencing positive revenue growth as a whole, RUS has been unable to grow revenues and is losing market share. This trend continues from the previous year when revenue growth at RUS and the Steel industry were -37.22% and 136.78%, respectively._

I sold it in 2018 after many years around my cost base (for a wash) but did profit over many years from the large dividend. When I sold, I looked for an Industrial sector stock to replace it with. I chose TFI International Inc (TSX:TFII) which is a Canadian transportation and logistics company (that use to be TransForce). That was one of the luckier moves I've made for sure.

But RUS is down to around $17 right now and many seem to think it should command around $20, so there might be some capital gain to be made and as long as the dividend holds you'll be paid to wait. If they cut that dividend it won't be a good thing though and you won't see it coming.

What do I know - but my advice is to look elsewhere.

ltr


----------



## mopar44o (Aug 11, 2017)

Thanks guys for the replies.

I haven't been here in a while and used to discuss stuff on FB. But I recently deleted my account so it's good to see a discussion here.



https://www.russelmetals.com/wp-content/uploads/Q22020PREarningsENGV4.pdf



I was looking at dividends as a % of free cash flow which was 69%

What else would you consider when assessing this stock or others when looking at dividend stock?

Just trying to learn more even if I don't invest in this one.


----------



## Ponderling (Mar 1, 2013)

So there is life coming into this with oil homing alive a bit maybe. Hopefully will bring down dividend yield so I don't feel so nervous we are heading big time to div at risk territory.


----------

