SCHN

Schnitzer Steel IndustriesNasdaqGS:SCHN Stock Report

Market Cap

US$1.1b

7D

-9.2%

1Y

92.9%

Updated

18 Sep, 2021

Data

Company Financials +
SCHN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends5/6

SCHN Overview

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide.

Schnitzer Steel Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Schnitzer Steel Industries
Historical stock prices
Current Share PriceUS$40.99
52 Week HighUS$18.78
52 Week LowUS$59.34
Beta1.37
1 Month Change-16.24%
3 Month Change-12.60%
1 Year Change92.89%
3 Year Change49.06%
5 Year Change107.86%
Change since IPO547.21%

Recent News & Updates

Jul 27
Schnitzer Steel Industries (NASDAQ:SCHN) Is Experiencing Growth In Returns On Capital

Schnitzer Steel Industries (NASDAQ:SCHN) Is Experiencing Growth In Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...

Shareholder Returns

SCHNUS Metals and MiningUS Market
7D-9.2%-5.1%-0.6%
1Y92.9%36.9%33.8%

Return vs Industry: SCHN exceeded the US Metals and Mining industry which returned 36.9% over the past year.

Return vs Market: SCHN exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is SCHN's price volatile compared to industry and market?
SCHN volatility
SCHN Beta1.37
Industry Beta1.32
Market Beta1

Stable Share Price: SCHN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SCHN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19063,032Tamara Adler Lundgrenhttps://www.schnitzersteel.com

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. The company operates in two segments, Auto and Metals Recycling (AMR), and Cascade Steel and Scrap (CSS). The AMR segment acquires, processes, and recycles scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting.

Valuation

Is Schnitzer Steel Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCHN ($40.99) is trading below our estimate of fair value ($110.19)

Significantly Below Fair Value: SCHN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCHN is good value based on its PE Ratio (8.9x) compared to the US Metals and Mining industry average (12.2x).

PE vs Market: SCHN is good value based on its PE Ratio (8.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SCHN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SCHN is good value based on its PB Ratio (1.4x) compared to the US Metals and Mining industry average (2.4x).


Future Growth

How is Schnitzer Steel Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHN's forecast earnings growth (17.3% per year) is above the savings rate (2%).

Earnings vs Market: SCHN's earnings (17.3% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: SCHN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCHN's revenue (14.7% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SCHN's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SCHN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Schnitzer Steel Industries performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCHN has high quality earnings.

Growing Profit Margin: SCHN's current net profit margins (5.3%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: SCHN has become profitable over the past 5 years, growing earnings by 12.4% per year.

Accelerating Growth: SCHN's earnings growth over the past year (3456.6%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: SCHN earnings growth over the past year (3456.6%) exceeded the Metals and Mining industry 102.1%.


Return on Equity

High ROE: SCHN's Return on Equity (16.3%) is considered low.


Financial Health

How is Schnitzer Steel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SCHN's short term assets ($585.2M) exceed its short term liabilities ($296.7M).

Long Term Liabilities: SCHN's short term assets ($585.2M) exceed its long term liabilities ($386.5M).


Debt to Equity History and Analysis

Debt Level: SCHN's debt to equity ratio (19.2%) is considered satisfactory.

Reducing Debt: SCHN's debt to equity ratio has reduced from 41.4% to 19.2% over the past 5 years.

Debt Coverage: SCHN's debt is well covered by operating cash flow (77.6%).

Interest Coverage: SCHN's interest payments on its debt are well covered by EBIT (22.4x coverage).


Balance Sheet


Dividend

What is Schnitzer Steel Industries's current dividend yield, its reliability and sustainability?

1.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCHN's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SCHN's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: SCHN's dividends per share have been stable in the past 10 years.

Growing Dividend: SCHN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), SCHN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCHN's dividends in 3 years are forecast to be thoroughly covered by earnings (10.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Tamara Adler Lundgren (63 yo)

12.75yrs

Tenure

US$6,871,554

Compensation

Ms. Tamara L. Adler Lundgren, J.D., has been the President, Chief Executive Officer and Director of Schnitzer Steel Industries, Inc. since December 1, 2008 and has been its Chairman since March 27, 2020. S...


CEO Compensation Analysis

Compensation vs Market: Tamara's total compensation ($USD6.87M) is above average for companies of similar size in the US market ($USD2.33M).

Compensation vs Earnings: Tamara's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SCHN's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: SCHN's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Schnitzer Steel Industries, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Schnitzer Steel Industries, Inc.
  • Ticker: SCHN
  • Exchange: NasdaqGS
  • Founded: 1906
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$1.128b
  • Shares outstanding: 27.52m
  • Website: https://www.schnitzersteel.com

Number of Employees


Location

  • Schnitzer Steel Industries, Inc.
  • 299 SW Clay Street
  • Suite 350
  • Portland
  • Oregon
  • 97201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/05/31
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.