SCHNITZER STEEL INDS INC-A (SCHN) Stock Fundamental Analysis
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. While SCHN seems to be doing ok healthwise, there are quite some concerns on its profitability. SCHN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SCHN had positive earnings in the past year.
SCHN had a positive operating cash flow in the past year.
SCHN had negative earnings in 4 of the past 5 years.
In the past 5 years SCHN reported 4 times negative operating cash flow.
1.2 Ratios
SCHN has a Return On Assets of 0.56%. This is comparable to the rest of the industry: SCHN outperforms 57.33% of its industry peers.
SCHN has a Return On Equity of 1.11%. This is comparable to the rest of the industry: SCHN outperforms 56.67% of its industry peers.
SCHN's Return On Invested Capital of 1.54% is in line compared to the rest of the industry. SCHN outperforms 51.33% of its industry peers.
| 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 in line with 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.
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
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.
SCHN has a better debt/assets ratio than last year.
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 Debt to FCF ratio of 11.40. This is in the better half of the industry: SCHN outperforms 74.67% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that SCHN is not too dependend on debt financing.
The Debt to Equity ratio of SCHN (0.37) is worse 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
A Current Ratio of 1.93 indicates that SCHN should not have too much problems paying its short term obligations.
SCHN's Current ratio of 1.93 is on the low side compared to the rest of the industry. SCHN is outperformed by 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.
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 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%.
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
The Earnings Per Share is expected to decrease by -5.28% on average over the next years.
The Revenue is expected to grow by 0.57% on average over the next years.
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.
4. Valuation
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.
The average S&P500 Price/Earnings ratio is at 27.08. SCHN is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 20.34 indicates a rather expensive valuation of SCHN.
SCHN's Price/Forward Earnings ratio is in line with the industry average.
SCHN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCHN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHN indicates a somewhat cheap valuation: SCHN is cheaper than 77.33% of the companies listed 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.
SCHN's Dividend Yield is rather good when compared to the industry average which is at 2.60. 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 2.34.
| 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 Change2.2%
Ins Owners2.41%
Ins Owner Change0%
Market Cap906.73M
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
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
ROICexcg growth 3YN/A
ROICexcg 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