Schnitzer Steel Industries Inc

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SCHN : NASDAQ : Basic Materials
$22.85 up 0.1 | 0.44%
Today's Range: 22.55 - 23.1
Avg. Daily Volume: 485600.0
01/20/17 - 4:00 PM ET

Financial Analysis


SCHNITZER STEEL INDS's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SCHNITZER STEEL INDS has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of 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 decreased by 5.88% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)334.16321.2
EBITDA ($mil)13.3212.75
EBIT ($mil)0.78-2.07
Net Income ($mil)-1.33-5.3


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)8.118.93
Total Assets ($mil)878.89900.69
Total Debt ($mil)187.65203.55
Equity ($mil)490.26520.93


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin15.2115.93
EBITDA Margin3.983.97
Operating Margin0.23-0.65
Sales Turnover1.551.87
Return on Assets-1.75-22.18
Return on Equity-2.87-37.12
Debt Q1 FY17 Q1 FY16
Current Ratio2.342.68
Debt/Capital0.280.28
Interest Expense1.741.86
Interest Coverage0.45-1.12


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)27.026.75
Div / share0.190.19
EPS-0.05-0.19
Book value / share18.1619.48
Institutional Own % n/a n/a
Avg Daily Volume472453.0335604.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 1.31 indicates a significant discount versus the S&P 500 average of 2.84 and a discount versus the industry average of 2.00. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 470.61   SCHN 9.87 Peers 11.61

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

SCHN's P/E is negative making this valuation measure meaningless.

 

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 17.72 Peers 27.19   SCHN NA Peers 1.00

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SCHN 1.31 Peers 2.00   SCHN 92.61 Peers -45.01

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.

 

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

SCHN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCHN 0.47 Peers 3.14   SCHN -18.87 Peers -10.68

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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