NasdaqGS:SCHN

Stock Analysis Report

Schnitzer Steel Industries

Executive Summary

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


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Schnitzer Steel Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCHN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

SCHN

10.4%

US Metals and Mining

9.9%

US Market


1 Year Return

-53.3%

SCHN

-28.5%

US Metals and Mining

-11.9%

US Market

Return vs Industry: SCHN underperformed the US Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: SCHN underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

SCHNIndustryMarket
7 Day-6.0%10.4%9.9%
30 Day-32.0%-19.9%-15.0%
90 Day-48.6%-33.0%-21.5%
1 Year-51.6%-53.3%-26.5%-28.5%-10.0%-11.9%
3 Year-40.4%-45.7%-24.9%-29.1%12.3%5.1%
5 Year-18.1%-31.4%-5.2%-12.8%32.5%18.1%

Price Volatility Vs. Market

How volatile is Schnitzer Steel Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

12.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCHN ($11.21) is trading below our estimate of fair value ($12.86)

Significantly Below Fair Value: SCHN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SCHN is poor value based on its PE Ratio (9.3x) compared to the Metals and Mining industry average (7.7x).

PE vs Market: SCHN is good value based on its PE Ratio (9.3x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SCHN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SCHN is good value based on its PB Ratio (0.4x) compared to the US Metals and Mining industry average (1x).


Next Steps

Future Growth

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

-40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHN's earnings are forecast to decline over the next 3 years (-40.8% per year).

Earnings vs Market: SCHN's earnings are forecast to decline over the next 3 years (-40.8% per year).

High Growth Earnings: SCHN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SCHN's revenue (6.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SCHN's revenue (6.9% 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


Next Steps

Past Performance

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

63.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCHN has high quality earnings.

Growing Profit Margin: SCHN's current net profit margins (1.7%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: SCHN has become profitable over the past 5 years, growing earnings by 63.6% per year.

Accelerating Growth: SCHN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCHN had negative earnings growth (-78.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.9%).


Return on Equity

High ROE: SCHN's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Schnitzer Steel Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SCHN's short term assets ($339.9M) exceed its short term liabilities ($157.4M).

Long Term Liabilities: SCHN's short term assets ($339.9M) exceed its long term liabilities ($316.1M).


Debt to Equity History and Analysis

Debt Level: SCHN's debt to equity ratio (17.5%) is considered satisfactory.

Reducing Debt: SCHN's debt to equity ratio has reduced from 44.1% to 17.5% over the past 5 years.


Balance Sheet

Inventory Level: SCHN has a high level of physical assets or inventory.

Debt Coverage by Assets: SCHN's debt is covered by short term assets (assets are 2.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SCHN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SCHN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

6.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCHN's dividend (6.69%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SCHN's dividend (6.69%) is in the top 25% of dividend payers in the US market (5.49%)


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 reasonable payout ratio (62%), SCHN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCHN's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Tamara Adler Lundgren (61yo)

11.25s

Tenure

US$5,930,132

Compensation

Ms. Tamara L. Adler Lundgren has been the Chief Executive Officer and President of Schnitzer Steel Industries, Inc. since December 1, 2008. She joined Schnitzer Steel Industries in September 2005. She serv ...


CEO Compensation Analysis

Compensation vs Market: Tamara's total compensation ($USD5.93M) is above average for companies of similar size in the US market ($USD2.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tamara Adler Lundgren
President11.25yrsUS$5.93m2.35% $7.1m
Richard Peach
Senior VP12.25yrsUS$1.99m0.37% $1.1m
Jeffrey Dyck
Senior VP and Co-President of Cascade Steel & Scrapno dataUS$1.19m0.28% $841.3k
Michael Henderson
Senior VP and Co-President of Autono dataUS$1.64m0.21% $652.5k
Steven Heiskell
Senior VP and Co-President of Auto & Metals Recycling Business5.17yrsUS$1.51m0.18% $546.1k
Stefano Gaggini
Deputy CFO6.25yrsno data0.059% $178.2k
Michael Bennett
Senior Director of Investor Relationsno datano datano data
Peter Saba
Senior VP4.67yrsUS$1.44m0.073% $221.6k
Robert Stone
Vice President of Corporate Development3.58yrsno datano data
Brian Shipley
Deputy Chief of Staffno datano datano data

5.7yrs

Average Tenure

56yo

Average Age

Experienced Management: SCHN's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tamara Adler Lundgren
President11.25yrsUS$5.93m2.35% $7.1m
John Carter
Chairman11.25yrsUS$353.84k0.35% $1.1m
Wayland Hicks
Lead Director5.5yrsUS$227.05k0.026% $79.6k
William Larsson
Independent Director14yrsUS$215.44k0.0037% $11.2k
Judith Johansen
Independent Director14.17yrsUS$217.98k0.26% $797.6k
Michael Sutherlin
Independent Director4.92yrsUS$199.98k0.14% $425.2k
Rhonda Hunter
Independent Director2.42yrsUS$199.98k0.062% $190.0k
David Jahnke
Independent Director7.17yrsUS$228.00k0.19% $568.6k

9.2yrs

Average Tenure

69.5yo

Average Age

Experienced Board: SCHN's board of directors are considered experienced (9.2 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 company bio, 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$304.274m
  • Shares outstanding: 27.14m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCHNNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 1993
SS1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 1993

Biography

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. This segment offers ferrous recycled scrap metal, a feedstock used in the production of finished steel products; and nonferrous products, including aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys, and joint products. It sells ferrous and nonferrous recycled metal products to steel mills, foundries, refineries, smelters, wholesalers, and recycled metal processors. This segment also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 51 self-service auto parts stores in the United States and Western Canada, as well as sells auto bodies and component parts, such as engines, transmissions, and alternators to wholesalers. The CSS segment produces various finished steel products using ferrous recycled scrap metal and other raw materials. It provides semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products suppliers. Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:00
End of Day Share Price2020/03/27 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.