Schnitzer Steel Industries Inc

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SCHN : NASDAQ : Basic Materials
$19.75 | %
Today's Range: 19.65 - 20.14
Avg. Daily Volume: 452000.0
05/26/17 - 4:00 PM ET

Financial Analysis


SCHNITZER STEEL INDS's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SCHNITZER STEEL INDS has average liquidity. Currently, the Quick Ratio is 1.07 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.30% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)382.08289.08
EBITDA ($mil)24.069.93
EBIT ($mil)11.46-4.19
Net Income ($mil)11.04-41.25


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)9.838.94
Total Assets ($mil)920.45852.17
Total Debt ($mil)209.48197.84
Equity ($mil)498.55473.42


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin17.7715.06
EBITDA Margin6.293.43
Operating Margin3.0-1.45
Sales Turnover1.581.8
Return on Assets4.0-5.33
Return on Equity7.47-8.91
Debt Q2 FY17 Q2 FY16
Current Ratio2.462.48
Debt/Capital0.30.29
Interest Expense2.12.02
Interest Coverage5.46-2.08


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)27.0426.75
Div / share0.190.19
EPS0.4-1.48
Book value / share18.4417.7
Institutional Own % n/a n/a
Avg Daily Volume447691.0461310.0

Valuation


HOLD. SCHNITZER STEEL INDS's P/E ratio indicates a significant discount compared to an average of 34.90 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 1.03 indicates a significant discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 1.74. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SCHNITZER STEEL INDS proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SCHN 14.00 Peers 34.90   SCHN 8.73 Peers 11.46

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SCHN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SCHN is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SCHN 14.21 Peers 20.68   SCHN NM Peers 1.29

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SCHN is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SCHN's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SCHN 1.03 Peers 1.74   SCHN 186.53 Peers 242.77

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SCHN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SCHN is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCHN 0.35 Peers 2.94   SCHN -4.96 Peers 6.23

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SCHN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SCHN significantly trails its peers on the basis of sales growth

 

 

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