Q: Payer; Does RUS even come on the screen for an acquisition re todays Nippon /US a steel deal ? Thanks.
Rod
Rod
5i Research Answer:
RUS is a distributor, not a manufacturer, so is quite different than a steel producer. But it has a low valuation, a solid balance sheet, and good cash flow. Versus other cycles, its balance sheet is the best it's ever been, with net cash now. Yet is it still 10X earnings, even after big gains this year. We would consider it a possible takeout or privatization candidate, certainly.