NasdaqGS:SCHN

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Schnitzer Steel Industries

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

SCHN

-0.3%

US Metals and Mining

-1.4%

US Market


1 Year Return

1.4%

SCHN

24.5%

US Metals and Mining

17.8%

US Market

Return vs Industry: SCHN underperformed the US Metals and Mining industry which returned 24.1% over the past year.

Return vs Market: SCHN underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SCHNIndustryMarket
7 Day5.3%-0.3%-1.4%
30 Day12.4%5.3%4.7%
90 Day21.2%8.7%8.2%
1 Year5.8%1.4%27.3%24.5%20.5%17.8%
3 Year-18.2%-25.8%14.2%6.7%42.2%32.7%
5 Year57.3%31.8%100.2%82.2%83.4%62.7%

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?

170.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCHN ($21.9) is trading above our estimate of fair value ($10.41)

Significantly Below Fair Value: SCHN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCHN is poor value based on its PE Ratio (170.1x) compared to the US Metals and Mining industry average (19x).

PE vs Market: SCHN is poor value based on its PE Ratio (170.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SCHN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SCHN is good value based on its PB Ratio (0.9x) compared to the US Metals and Mining industry average (1.5x).


Next Steps

Future Growth

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

181.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHN's forecast earnings growth (181% per year) is above the savings rate (2.2%).

Earnings vs Market: SCHN's earnings (181% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SCHN's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: SCHN's revenue is forecast to decline over the next 3 years (-1.4% 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?

57.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCHN has a large one-off loss of $11.7M impacting its May 31 2020 financial results.

Growing Profit Margin: SCHN's current net profit margins (0.2%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: SCHN has become profitable over the past 5 years, growing earnings by 57.4% 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 (-96.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-39.6%).


Return on Equity

High ROE: SCHN's Return on Equity (0.8%) 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 ($653.2M) exceed its short term liabilities ($165.3M).

Long Term Liabilities: SCHN's short term assets ($653.2M) exceed its long term liabilities ($634.5M).


Debt to Equity History and Analysis

Debt Level: SCHN's debt to equity ratio (62.3%) is considered high.

Reducing Debt: SCHN's debt to equity ratio has increased from 48.8% to 62.3% over the past 5 years.

Debt Coverage: SCHN's debt is well covered by operating cash flow (32.7%).

Interest Coverage: SCHN's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCHN's dividend (3.42%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: SCHN's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 high payout ratio (582.6%), SCHN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Tamara Adler Lundgren (62 yo)

11.83yrs

Tenure

US$5,930,132

Compensation

Ms. Tamara L. Adler Lundgren 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. She join ...


CEO Compensation Analysis

Compensation vs Market: Tamara's total compensation ($USD5.93M) is above average for companies of similar size in the US market ($USD1.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tamara Adler Lundgren
Chairman11.83yrsUS$5.93m2.35%
$ 13.9m
Richard Peach
Executive VP12.83yrsUS$1.99m0.37%
$ 2.2m
Michael Henderson
Senior VP & President of Operations0.17yrUS$1.64m0.21%
$ 1.3m
Steven Heiskell
Senior VP & President of Recycling Products and Services5.75yrsUS$1.51m0.18%
$ 1.1m
Stefano Gaggini
Deputy CFO6.83yrsno data0.059%
$ 348.1k
Michael Bennett
Senior Director of Investor Relationsno datano datano data
Peter Saba
Senior VP5.25yrsUS$1.44m0.073%
$ 432.9k
Robert Stone
Vice President of Corporate Development4.17yrsno datano data
Erich Wilson
Senior VP0.17yrno datano data
Brian Shipley
Deputy Chief of Staffno datano datano data

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: SCHN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tamara Adler Lundgren
Chairman11.83yrsUS$5.93m2.35%
$ 13.9m
John Carter
Chairman Emeritus0.58yrUS$353.84k0.35%
$ 2.1m
Wayland Hicks
Lead Independent Director6.08yrsUS$227.05k0.026%
$ 155.5k
William Larsson
Independent Director14.58yrsUS$215.44k0.0037%
$ 21.9k
Judith Johansen
Independent Director14.75yrsUS$217.98kno data
Michael Sutherlin
Independent Director5.5yrsUS$199.98kno data
Rhonda Hunter
Independent Director3yrsUS$199.98kno data
David Jahnke
Independent Director7.75yrsUS$228.00kno data

5.8yrs

Average Tenure

70.5yo

Average Age

Experienced Board: SCHN's board of directors are considered experienced (5.8 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$593.478m
  • Shares outstanding: 27.10m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:49
End of Day Share Price2020/10/21 00:00
Earnings2020/05/31
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.