SCHNITZER STEEL INDS INC-A (SCHN) Fundamental Analysis & Valuation

NASDAQ:SCHN • US8068821060

Current stock price

33.2 USD
-0.19 (-0.57%)
At close:
33.2 USD
0 (0%)
After Hours:

This SCHN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SCHN Profitability Analysis

1.1 Basic Checks

  • In the past year SCHN was profitable.
  • SCHN had a positive operating cash flow in the past year.
SCHN Yearly Net Income VS EBIT VS OCF VS FCFSCHN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

1.2 Ratios

  • The Return On Assets of SCHN (0.56%) is comparable to the rest of the industry.
  • The Return On Equity of SCHN (1.11%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 1.54%, SCHN is in line with its industry, outperforming 51.33% of the companies in the same industry.
Industry RankSector Rank
ROA 0.56%
ROE 1.11%
ROIC 1.54%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SCHN Yearly ROA, ROE, ROICSCHN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 200 -200

1.3 Margins

  • SCHN's Profit Margin of 0.34% is in line compared to the rest of the industry. SCHN outperforms 56.67% of its industry peers.
  • Looking at the Operating Margin, with a value of 0.97%, SCHN is in line with its industry, outperforming 47.33% of the companies in the same industry.
  • SCHN's Gross Margin of 9.89% is in line compared to the rest of the industry. SCHN outperforms 43.33% of its industry peers.
  • In the last couple of years the Gross Margin of SCHN has declined.
Industry RankSector Rank
OM 0.97%
PM (TTM) 0.34%
GM 9.89%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-46.36%
GM growth 5Y-31.69%
SCHN Yearly Profit, Operating, Gross MarginsSCHN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 -200 -400 -600 -800 -1K

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. SCHN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCHN is destroying value.
  • SCHN has less shares outstanding than it did 1 year ago.
  • The debt/assets ratio for SCHN has been reduced compared to a year ago.
SCHN Yearly Shares OutstandingSCHN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
SCHN Yearly Total Debt VS Total AssetsSCHN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 3.17 indicates that SCHN is not in any danger for bankruptcy at the moment.
  • SCHN has a Altman-Z score of 3.17. This is comparable to the rest of the industry: SCHN outperforms 58.67% of its industry peers.
  • SCHN has a debt to FCF ratio of 11.40. This is a negative value and a sign of low solvency as SCHN would need 11.40 years to pay back of all of its debts.
  • SCHN has a better Debt to FCF ratio (11.40) than 74.67% of its industry peers.
  • SCHN has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
  • SCHN has a worse Debt to Equity ratio (0.37) than 69.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 11.4
Altman-Z 3.17
ROIC/WACC0.18
WACC8.43%
SCHN Yearly LT Debt VS Equity VS FCFSCHN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.93 indicates that SCHN should not have too much problems paying its short term obligations.
  • The Current ratio of SCHN (1.93) is worse than 68.67% of its industry peers.
  • A Quick Ratio of 1.05 indicates that SCHN should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.05, SCHN is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.05
SCHN Yearly Current Assets VS Current LiabilitesSCHN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SCHN Growth Analysis

3.1 Past

  • The earnings per share for SCHN have decreased strongly by -88.18% in the last year.
  • Measured over the past years, SCHN shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.65% on average per year.
  • SCHN shows a strong growth in Revenue. In the last year, the Revenue has grown by 159.95%.
  • Measured over the past years, SCHN shows a very strong growth in Revenue. The Revenue has been growing by 175.16% on average per year.
EPS 1Y (TTM)-88.18%
EPS 3Y42.07%
EPS 5Y31.65%
EPS Q2Q%-74.13%
Revenue 1Y (TTM)159.95%
Revenue growth 3Y171.96%
Revenue growth 5Y175.16%
Sales Q2Q%-19.85%

3.2 Future

  • Based on estimates for the next years, SCHN will show a decrease in Earnings Per Share. The EPS will decrease by -5.28% on average per year.
  • SCHN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.57% yearly.
EPS Next Y-87.36%
EPS Next 2Y-48.06%
EPS Next 3Y-5.28%
EPS Next 5YN/A
Revenue Next Year-15.3%
Revenue Next 2Y-9.83%
Revenue Next 3Y0.57%
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 decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SCHN Yearly Revenue VS EstimatesSCHN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
SCHN Yearly EPS VS EstimatesSCHN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6

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2

4. SCHN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 38.16 indicates a quite expensive valuation of SCHN.
  • SCHN's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, SCHN is valued a bit more expensive.
  • The Price/Forward Earnings ratio is 20.34, which indicates a rather expensive current valuation of SCHN.
  • SCHN's Price/Forward Earnings is on the same level as the industry average.
  • SCHN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.24.
Industry RankSector Rank
PE 38.16
Fwd PE 20.34
SCHN Price Earnings VS Forward Price EarningsSCHN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCHN is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, SCHN is valued a bit cheaper than 77.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.46
EV/EBITDA 10.76
SCHN Per share dataSCHN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • A cheap valuation may be justified as SCHN's earnings are expected to decrease with -5.28% in the coming years.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-48.06%
EPS Next 3Y-5.28%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. SCHN Dividend Analysis

5.1 Amount

  • SCHN has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.06, SCHN pays a better dividend. On top of this SCHN pays more dividend than 83.33% of the companies listed in the same industry.
  • SCHN's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.52%

5.2 History

  • SCHN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SCHN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
SCHN Yearly Dividends per shareSCHN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6

5.3 Sustainability

  • 203.74% of the earnings are spent on dividend by SCHN. This is not a sustainable payout ratio.
DP203.74%
EPS Next 2Y-48.06%
EPS Next 3Y-5.28%
SCHN Yearly Income VS Free CF VS DividendSCHN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M
SCHN Dividend Payout.SCHN Dividend Payout, showing the Payout Ratio.SCHN Dividend Payout.PayoutRetained Earnings

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SCHN Fundamentals: All Metrics, Ratios and Statistics

SCHNITZER STEEL INDS INC-A

NASDAQ:SCHN (8/31/2023, 8:18:19 PM)

After market: 33.2 0 (0%)

33.2

-0.19 (-0.57%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)06-27
Earnings (Next)10-23
Inst Owners82.28%
Inst Owner Change0%
Ins Owners2.41%
Ins Owner Change0%
Market Cap906.73M
Revenue(TTM)3.06B
Net Income(TTM)10.38M
Analysts48.89
Price Target35.7 (7.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.52%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP203.74%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.76%
Min EPS beat(2)-36.16%
Max EPS beat(2)2.63%
EPS beat(4)3
Avg EPS beat(4)-5.15%
Min EPS beat(4)-36.16%
Max EPS beat(4)7.74%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.22%
Min Revenue beat(2)-3.67%
Max Revenue beat(2)6.11%
Revenue beat(4)2
Avg Revenue beat(4)1.77%
Min Revenue beat(4)-3.67%
Max Revenue beat(4)7.25%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-7.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
Industry RankSector Rank
PE 38.16
Fwd PE 20.34
P/S 0.3
P/FCF 29.46
P/OCF 4.92
P/B 0.97
P/tB 1.43
EV/EBITDA 10.76
EPS(TTM)0.87
EY2.62%
EPS(NY)1.63
Fwd EY4.92%
FCF(TTM)1.13
FCFY3.39%
OCF(TTM)6.74
OCFY20.31%
SpS111.99
BVpS34.27
TBVpS23.19
PEG (NY)N/A
PEG (5Y)1.21
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 0.56%
ROE 1.11%
ROCE 1.94%
ROIC 1.54%
ROICexc 1.55%
ROICexgc 1.93%
OM 0.97%
PM (TTM) 0.34%
GM 9.89%
FCFM 1.01%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-46.36%
GM growth 5Y-31.69%
F-Score5
Asset Turnover1.64
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 11.4
Debt/EBITDA 2.95
Cap/Depr 176.59%
Cap/Sales 5.02%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 296.63%
Current Ratio 1.93
Quick Ratio 1.05
Altman-Z 3.17
F-Score5
WACC8.43%
ROIC/WACC0.18
Cap/Depr(3y)67.48%
Cap/Depr(5y)41.81%
Cap/Sales(3y)1.44%
Cap/Sales(5y)0.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-88.18%
EPS 3Y42.07%
EPS 5Y31.65%
EPS Q2Q%-74.13%
EPS Next Y-87.36%
EPS Next 2Y-48.06%
EPS Next 3Y-5.28%
EPS Next 5YN/A
Revenue 1Y (TTM)159.95%
Revenue growth 3Y171.96%
Revenue growth 5Y175.16%
Sales Q2Q%-19.85%
Revenue Next Year-15.3%
Revenue Next 2Y-9.83%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
EBIT growth 1Y-54.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-41.5%
EBIT Next 3Y8.05%
EBIT Next 5YN/A
FCF growth 1Y159.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y457.36%
OCF growth 3YN/A
OCF growth 5YN/A

SCHNITZER STEEL INDS INC-A / SCHN Fundamental Analysis FAQ

What is the fundamental rating for SCHN stock?

ChartMill assigns a fundamental rating of 3 / 10 to SCHN.


What is the valuation status of SCHNITZER STEEL INDS INC-A (SCHN) stock?

ChartMill assigns a valuation rating of 2 / 10 to SCHNITZER STEEL INDS INC-A (SCHN). This can be considered as Overvalued.


What is the profitability of SCHN stock?

SCHNITZER STEEL INDS INC-A (SCHN) has a profitability rating of 2 / 10.


Can you provide the expected EPS growth for SCHN stock?

The Earnings per Share (EPS) of SCHNITZER STEEL INDS INC-A (SCHN) is expected to decline by -87.36% in the next year.


How sustainable is the dividend of SCHNITZER STEEL INDS INC-A (SCHN) stock?

The dividend rating of SCHNITZER STEEL INDS INC-A (SCHN) is 0 / 10 and the dividend payout ratio is 203.74%.