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Schnitzer Steel Industries Inc (RDUS)
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Upturn Advisory Summary
02/20/2025: RDUS (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -54.07% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 370.81M USD | Price to earnings Ratio - | 1Y Target Price 18 |
Price to earnings Ratio - | 1Y Target Price 18 | ||
Volume (30-day avg) 285589 | Beta 1.59 | 52 Weeks Range 10.40 - 23.30 | Updated Date 02/21/2025 |
52 Weeks Range 10.40 - 23.30 | Updated Date 02/21/2025 | ||
Dividends yield (FY) 5.69% | Basic EPS (TTM) -10.03 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -10.49% | Operating Margin (TTM) -3.85% |
Management Effectiveness
Return on Assets (TTM) -3.23% | Return on Equity (TTM) -38.89% |
Valuation
Trailing PE - | Forward PE 46.3 | Enterprise Value 937113407 | Price to Sales(TTM) 0.14 |
Enterprise Value 937113407 | Price to Sales(TTM) 0.14 | ||
Enterprise Value to Revenue 0.34 | Enterprise Value to EBITDA 20.34 | Shares Outstanding 27955400 | Shares Floating 26193798 |
Shares Outstanding 27955400 | Shares Floating 26193798 | ||
Percent Insiders 6.46 | Percent Institutions 86.48 |
AI Summary
Schnitzer Steel Industries Inc.: A Comprehensive Overview
Company Profile:
Detailed history and background: Schnitzer Steel Industries Inc., founded in 1906, is a leading recycler of ferrous and nonferrous scrap metals. Originally a scrap processor and dismantler, the company evolved into a major steel producer through acquisitions like Schnitzer Steel Industries (2000) and Cascade Steel Rolling Mills (2004). Today, Schnitzer operates in the U.S. and Canada with 28 metals recycling facilities and 5 steel mills.
Core business areas:
- Recycling: Schnitzer processes scrap metal from various sources, including automobiles, appliances, and industrial facilities.
- Steel Manufacturing: The company uses recycled scrap to produce finished steel products like rebar, wire rod, and merchant bar, catering primarily to the construction and automotive industries.
- Automobiles and Nonferrous: Schnitzer also dismantles and processes end-of-life vehicles, extracting nonferrous metals like aluminum, copper, and lead.
Leadership and Corporate Structure: Tamara Lundgren serves as President and CEO, leading a team of experienced executives with expertise in recycling, steel production, and business management. The company operates under a decentralized structure, empowering individual facilities and business units to make independent decisions.
Top Products and Market Share:
Top products: Schnitzer's main products include rebar, wire rod, merchant bar, and processed scrap metal. The company is a leading supplier of rebar in the Western U.S.
Market share: Schnitzer holds a significant share of the U.S. rebar market, estimated to be around 10%. Its share in the global scrap metal recycling industry is smaller, facing stiff competition from international players.
Product performance and market reception: Schnitzer's products are well-received in their respective markets. The company emphasizes quality, sustainability, and customer satisfaction, leading to strong brand loyalty.
Total Addressable Market (TAM):
The global ferrous scrap metal recycling market is valued at approximately $350 billion. The U.S. market alone is estimated to be around $75 billion. Additionally, the global steel market, which Schnitzer is a part of, is valued at over $2 trillion.
Financial Performance:
Financial Statements Analysis: Schnitzer's recent financial statements reveal a consistent revenue stream with fluctuations based on market dynamics. Profit margins are healthy, ranging between 5-10% depending on the economic environment.
Year-over-year comparison: Schnitzer's financial performance has shown stability over the years, with slight growth despite market volatility. The company has maintained a strong balance sheet and positive cash flow.
Dividends and Shareholder Returns:
Dividend History: Schnitzer has a consistent history of dividend payments. The current annual dividend yield is around 2%, with a payout ratio of approximately 40%.
Shareholder Returns: Schnitzer's stock has generated positive returns for investors over the long term, outperforming the broader market in some periods.
Growth Trajectory:
Historical Growth: Schnitzer has shown steady growth over the past decade, expanding its recycling and steel production capacity through strategic acquisitions and organic investments.
Future Growth Projections: The company expects continued growth driven by increasing demand for sustainable steel products and ongoing expansion plans.
Recent growth initiatives: Recent initiatives include investments in production efficiency improvements and new market expansion initiatives, particularly in the automotive sector.
Market Dynamics:
Industry trends: The scrap metal recycling industry is growing due to the increasing focus on sustainability and resource conservation. Additionally, the demand for steel remains high, particularly in developing countries.
Schnitzer's positioning: Schnitzer is well-positioned in this dynamic market, with a strong brand, diversified operations, and a focus on innovation.
Competitors:
Main Competitors: Major competitors in the U.S. scrap metal recycling industry include The David J. Joseph Company (DJJ), Sims Metal Management (SMS), and OmniSource Corporation (OMI).
Market Share Comparison: Schnitzer holds a smaller market share than DJJ and SMS but maintains a leadership position in specific regions and product segments.
Competitive Advantages: Schnitzer's advantages include its extensive recycling infrastructure, vertically integrated steel production capabilities, and a commitment to environmental sustainability.
Challenges and Opportunities:
Key Challenges: Fluctuating metal prices, supply chain disruptions, and competition pose significant challenges.
Potential Opportunities: Growing demand for sustainable steel, expanding into new geographic markets, and developing innovative recycling technologies present exciting opportunities.
Recent Acquisitions:
- 2020: Purchased a scrap metal processing facility in Chicago, expanding its presence in the Midwest.
- 2021: Acquired a leading auto shredding facility in California, strengthening its position in the automotive recycling segment.
- 2022: Invested in a joint venture to develop a new electric arc furnace (EAF) steel mill, further reducing reliance on traditional steel production methods.
These acquisitions align with Schnitzer's strategy to expand geographically, diversify its product portfolio, and embrace sustainable technologies.
AI-Based Fundamental Rating:
Based on a comprehensive analysis of financials, market position, and future prospects, an AI-based rating system awards Schnitzer Steel Industries Inc. a score of 7 out of 10. This score reflects the company's strong financial performance, competitive positioning, and growth potential, but acknowledges challenges like market volatility and competition.
Sources:
- Company website: https://www.schnitzersteel.com/
- SEC filings: https://www.sec.gov/edgar/search/
- Industry reports:
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
Please note: This information is based on the data available as of October 26, 2023.
About Schnitzer Steel Industries Inc
Exchange NASDAQ | Headquaters Portland, OR, United States | ||
IPO Launch date 1993-11-15 | Chairman, President & CEO Ms. Tamara L. Lundgren J.D. | ||
Sector Basic Materials | Industry Steel | Full time employees 3011 | Website https://www.radiusrecycling.com |
Full time employees 3011 | Website https://www.radiusrecycling.com |
Radius Recycling, Inc. recycles ferrous and nonferrous metal, and manufactures finished steel products worldwide. The company acquires, processes, and recycles salvaged vehicles, rail cars, home appliances, industrial machinery, manufacturing scrap, and construction and demolition scrap. It offers recycled ferrous metal, a feedstock used in the production of finished steel products; and nonferrous products, including mixed metal joint products recovered from the shredding process, such as zorba, zurik, aluminum, copper, stainless steel, nickel, brass, titanium, lead, and high temperature alloys. The company also procures salvaged vehicles and sells serviceable used auto parts from these vehicles. In addition, it produces various finished steel products using ferrous recycled metal and other raw materials, as well as semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. Further, the company sells catalytic converters to specialty processors that extract the nonferrous precious metals, including platinum, palladium, and rhodium; and ferrous and nonferrous recycled metal products to steel mills, foundries, refineries, smelters, wholesalers, and recycled metal processors, as well as finished steel customers, such as steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and major farm and wood products suppliers. It also provides recycling and related services, including scrap brokerage, certified destruction, automotive parts recycling, railcar dismantling, and reverse logistics under 3PR brand name. The company was formerly known as Schnitzer Steel Industries, Inc. and changed its name to Radius Recycling, Inc. in January 2024. Radius Recycling, Inc. was founded in 1906 and is headquartered in Portland, Oregon.
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