SCHNITZER STEEL INDS INC-A (SCHN)
US8068821060 - Common Stock
SCHN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past year SCHN had a positive cash flow from operations.
In the past 5 years SCHN reported 4 times negative net income.
SCHN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.56%, SCHN perfoms like the industry average, outperforming 57.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.11%, SCHN is in line with its industry, outperforming 56.67% of the companies in the same industry.
SCHN has a Return On Invested Capital (1.54%) which 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
SCHN has a Profit Margin (0.34%) which is in line with its industry peers.
SCHN has a Operating Margin of 0.97%. This is comparable to the rest of the industry: SCHN outperforms 47.33% of its industry peers.
SCHN has a Gross Margin of 9.89%. This is comparable 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCHN is destroying value.
The number of shares outstanding for SCHN has been reduced compared to 1 year ago.
The number of shares outstanding for SCHN has been reduced compared to 5 years 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.
SCHN has a Altman-Z score (3.17) which is in line with 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.
With a decent Debt to FCF ratio value of 11.40, SCHN is doing good in the industry, outperforming 74.67% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.18
WACC8.43%
2.3 Liquidity
SCHN has a Current Ratio of 1.93. This is a normal value and indicates that SCHN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.93, SCHN is doing worse than 68.67% of the companies in the same industry.
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%.
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%.
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 growth Q2Q-74.13%
Revenue 1Y (TTM)159.95%
Revenue growth 3Y171.96%
Revenue growth 5Y175.16%
Revenue growth 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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SCHN is valuated quite expensively with a Price/Earnings ratio of 38.16.
SCHN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.20, SCHN is valued quite 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.
When comparing the Price/Forward Earnings ratio of SCHN to the average of the S&P500 Index (21.60), we can say SCHN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 20.34 |
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 the industry average as 77.33% of the companies are valued more expensively.
| 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%.
SCHN's Dividend Yield is rather good when compared to the industry average which is at 2.87. SCHN pays more dividend than 83.33% of the companies in the same industry.
SCHN's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
SCHN has paid a dividend for at least 10 years, which is 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
SCHN pays out 203.74% of its income as dividend. This is not a sustainable payout ratio.
DP203.74%
EPS Next 2Y-48.06%
EPS Next 3Y-5.28%
SCHNITZER STEEL INDS INC-A
NASDAQ:SCHN (8/31/2023, 7:18:19 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap906.73M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 20.34 | ||
| 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)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 1.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.97% | ||
| PM (TTM) | 0.34% | ||
| GM | 9.89% | ||
| 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 Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.05 | ||
| 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)-88.18%
EPS 3Y42.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y-87.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)159.95%
Revenue growth 3Y171.96%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y