RADIUS RECYCLING INC (RDUS)
US8068821060 - Common Stock
Taking everything into account, RDUS scores 3 out of 10 in our fundamental rating. RDUS was compared to 154 industry peers in the Metals & Mining industry. RDUS may be in some trouble as it scores bad on both profitability and health. RDUS does not seem to be growing, but still is valued expensively. Finally RDUS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RDUS has reported negative net income.
In the past year RDUS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RDUS reported negative net income in multiple years.
Each year in the past 5 years RDUS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RDUS (-3.68%) is comparable to the rest of the industry.
RDUS has a worse Return On Equity (-7.61%) than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.68% | ||
| ROE | -7.61% | ||
| ROIC | N/A |
ROA(3y)6.26%
ROA(5y)4.66%
ROE(3y)11.54%
ROE(5y)8.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of RDUS has declined.
RDUS's Gross Margin of 9.41% is in line compared to the rest of the industry. RDUS outperforms 40.26% of its industry peers.
In the last couple of years the Gross Margin of RDUS has declined.
RDUS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.41% |
OM growth 3Y-3.97%
OM growth 5Y-29.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.3%
GM growth 5Y-6.55%
2. Health
2.1 Basic Checks
RDUS does not have a ROIC to compare to the WACC, probably because it is not profitable.
RDUS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RDUS has more shares outstanding
Compared to 1 year ago, RDUS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.81 indicates that RDUS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RDUS (2.81) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.44 indicates that RDUS is not too dependend on debt financing.
RDUS has a worse Debt to Equity ratio (0.44) than 72.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.81 |
ROIC/WACCN/A
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.96 indicates that RDUS should not have too much problems paying its short term obligations.
RDUS has a worse Current ratio (1.96) than 60.39% of its industry peers.
RDUS has a Quick Ratio of 1.96. This is a bad value and indicates that RDUS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.92, RDUS is doing worse than 76.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for RDUS have decreased strongly by -119.35% in the last year.
The earnings per share for RDUS have been decreasing by -27.90% on average. This is quite bad
Looking at the last year, RDUS shows a very negative growth in Revenue. The Revenue has decreased by -13.43% in the last year.
Measured over the past years, RDUS shows a small growth in Revenue. The Revenue has been growing by 4.04% on average per year.
EPS 1Y (TTM)-119.35%
EPS 3Y25.99%
EPS 5Y-27.9%
EPS growth Q2Q-842.86%
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y18.95%
Revenue growth 5Y4.04%
Revenue growth Q2Q-17.85%
3.2 Future
The Earnings Per Share is expected to grow by 39.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, RDUS will show a small growth in Revenue. The Revenue will grow by 0.16% on average per year.
EPS Next Y-426.64%
EPS Next 2Y6.27%
EPS Next 3Y39.17%
EPS Next 5YN/A
Revenue Next Year-9.34%
Revenue Next 2Y-2.68%
Revenue Next 3Y0.16%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for RDUS. In the last year negative earnings were reported.
RDUS is valuated rather expensively with a Price/Forward Earnings ratio of 18.57.
Based on the Price/Forward Earnings ratio, RDUS is valued a bit cheaper than 62.34% of the companies in the same industry.
RDUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.57 |
4.2 Price Multiples
RDUS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RDUS is cheaper than 64.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RDUS's earnings are expected to grow with 39.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.27%
EPS Next 3Y39.17%
5. Dividend
5.1 Amount
RDUS has a Yearly Dividend Yield of 4.27%, which is a nice return.
In the last 3 months the price of RDUS has falen by -29.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.85, RDUS pays a better dividend. On top of this RDUS pays more dividend than 91.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, RDUS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
5.2 History
The dividend of RDUS has a limited annual growth rate of 0.26%.
RDUS has paid a dividend for at least 10 years, which is a reliable track record.
RDUS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.26%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
RDUS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
RDUS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-33.15%
EPS Next 2Y6.27%
EPS Next 3Y39.17%
RADIUS RECYCLING INC
NASDAQ:RDUS (5/8/2024, 7:15:28 PM)
After market: 17.62 0 (0%)17.62
-0.63 (-3.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap493.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.68% | ||
| ROE | -7.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 9.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.96 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-119.35%
EPS 3Y25.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y-426.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.43%
Revenue growth 3Y18.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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