Schnitzer Steel Industries Inc. Stock Upgraded (SCHN)
- The revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 22.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- SCHNITZER STEEL INDS has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SCHNITZER STEEL INDS increased its bottom line by earning $4.24 versus $2.86 in the prior year. For the next year, the market is expecting a contraction of 43.0% in earnings ($2.42 versus $4.24).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 68.8% when compared to the same quarter one year ago, falling from $30.83 million to $9.63 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Metals & Mining industry and the overall market, SCHNITZER STEEL INDS's return on equity is below that of both the industry average and the S&P 500.
-- Written by a member of TheStreet RatingsStaff
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