Schnitzer Steel Industries Inc

Find Ratings Reports
SCHN : NASDAQ : Basic Materials
$26.2 | %
Today's Range: 26.05 - 27.0
Avg. Daily Volume: 470000.0
07/21/17 - 4:00 PM ET

Financial Analysis


SCHNITZER STEEL INDS's gross profit margin for the third quarter of its fiscal year 2017 has decreased 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 weak liquidity. Currently, the Quick Ratio is 1.00 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.82% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)477.09351.61
EBITDA ($mil)29.8528.16
EBIT ($mil)17.5315.17
Net Income ($mil)16.5711.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)15.217.02
Total Assets ($mil)921.23876.44
Total Debt ($mil)184.44202.72
Equity ($mil)513.06484.8


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin16.4119.87
EBITDA Margin6.258.0
Operating Margin3.674.31
Sales Turnover1.721.62
Return on Assets4.6-2.83
Return on Equity8.34-4.68
Debt Q3 FY17 Q3 FY16
Current Ratio2.312.56
Debt/Capital0.260.29
Interest Expense2.132.14
Interest Coverage8.237.1


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)27.0426.76
Div / share0.190.19
EPS0.60.41
Book value / share18.9718.12
Institutional Own % n/a n/a
Avg Daily Volume483637.0448003.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 29.82 for the Metals & Mining industry and a discount compared to the S&P 500 average of 24.41. Conducting a second comparison, its price-to-book ratio of 1.36 indicates a significant discount versus the S&P 500 average of 3.04 and a discount versus the industry average of 1.73. 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 16.79 Peers 29.82   SCHN 7.01 Peers 11.21

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 significant 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 19.22 Peers 21.16   SCHN NM Peers 1.42

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 1.36 Peers 1.73   SCHN 283.33 Peers 243.36

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 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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCHN 0.44 Peers 2.64   SCHN 11.63 Peers 6.87

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SCHN has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades