SCHNITZER STEEL INDS INC-A (SCHN) Stock Fundamental Analysis
USA - NASDAQ:SCHN - US8068821060 - Common Stock
33.2 USD
-0.19 (-0.57%)
33.2 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to SCHN. SCHN was compared to 155 industry peers in the Metals & Mining industry. SCHN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SCHN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCHN was profitable.
SCHN had a positive operating cash flow in the past year.
In the past 5 years SCHN reported 4 times negative net income.
In the past 5 years SCHN reported 4 times negative operating cash flow.
1.2 Ratios
SCHN has a Return On Assets (0.56%) which is in line with its industry peers.
SCHN has a Return On Equity (1.11%) which is comparable to the rest of the industry.
The Return On Invested Capital of SCHN (1.54%) is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
With a Profit Margin value of 0.34%, SCHN perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
SCHN has a Operating Margin (0.97%) which is comparable to the rest of the industry.
SCHN has a Gross Margin (9.89%) which is in line with its industry peers.
SCHN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCHN is destroying value.
The number of shares outstanding for SCHN has been reduced compared to 1 year ago.
The debt/assets ratio for SCHN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.17 indicates that SCHN is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.17, SCHN perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
The Debt to FCF ratio of SCHN is 11.40, which is on the high side as it means it would take SCHN, 11.40 years of fcf income to pay off all of its debts.
SCHN has a better Debt to FCF ratio (11.40) than 74.67% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that SCHN is not too dependend on debt financing.
SCHN's Debt to Equity ratio of 0.37 is on the low side compared to the rest of the industry. SCHN is outperformed by 69.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.18
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.93 indicates that SCHN should not have too much problems paying its short term obligations.
SCHN has a Current ratio of 1.93. This is in the lower half of the industry: SCHN underperforms 68.67% of its industry peers.
SCHN has a Quick Ratio of 1.05. This is a normal value and indicates that SCHN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SCHN (1.05) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
SCHN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.18%.
SCHN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.65% yearly.
The Revenue has grown by 159.95% in the past year. This is a very strong growth!
The Revenue has been growing by 175.16% on average over the past years. This is a very strong growth!
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
SCHN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.28% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SCHN is valuated quite expensively with a Price/Earnings ratio of 38.16.
SCHN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SCHN to the average of the S&P500 Index (27.67), we can say SCHN is valued slightly more expensively.
SCHN is valuated rather expensively with a Price/Forward Earnings ratio of 20.34.
SCHN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, SCHN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
SCHN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.46 | ||
| EV/EBITDA | 10.76 |
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%
5. Dividend
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 2.41, 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 comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector 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
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%
33.2
-0.19 (-0.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners82.28%
Inst Owner Change-0.19%
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 Rank | Sector 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 Rank | Sector 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 NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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