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Schnitzer Steel Industries (RDUS)
NASDAQ:RDUS
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Schnitzer Steel Industries
(NASDAQ:RDUS)
Rating:53Neutral
Price Target:―
Schnitzer Steel Industries (RDUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$836.19M
Dividend Yield2.53%
Average Volume (3M)711.94K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-2.75%
EPS Growth-339.59%
CountryUS
Employees3,011
SectorBasic Materials
Sector Strength69
IndustrySteel
Share Statistics
EPS (TTM)-0.99
Shares Outstanding28,001,982
10 Day Avg. Volume898,100
30 Day Avg. Volume711,941
Financial Highlights & Ratios
PEG Ratio-7.34
Price to Book (P/B)1.54
Price to Sales (P/S)0.00
P/FCF Ratio-20.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside-25.83% Downside
Rating ConsensusHold
Number of Analyst Covering1
Schnitzer Steel Industries Business Overview & Revenue Model
Company DescriptionSchnitzer Steel Industries, Inc. is a prominent American company that operates in the metals recycling industry. It is engaged in collecting, processing, and recycling ferrous and non-ferrous scrap metal. The company has a significant presence in North America, and its operations include auto and metals recycling, as well as manufacturing finished steel products. Schnitzer Steel serves a diverse array of markets, including construction, manufacturing, and automotive sectors.
How the Company Makes MoneySchnitzer Steel Industries generates revenue primarily through its two main business segments: Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB). The AMR segment involves the collection, processing, and sale of recycled ferrous and non-ferrous metals. This segment sources scrap metal from various suppliers, including auto salvage yards and industrial manufacturers, processes it, and sells it to steel mills and foundries. The SMB segment focuses on producing finished steel products using recycled metal, which are then sold to the construction and manufacturing industries. Schnitzer Steel also benefits from strategic partnerships and a network of recycling facilities that enhance its supply chain efficiency and market reach.
Schnitzer Steel Industries Earnings Call Summary
Earnings Call Date:Apr 04, 2025
(Q1-2025)
| % Change Since: 2.52%|
Next Earnings Date:Jun 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong safety performance, improvements in recycled metals business, and sustainability achievements being notable highlights. However, these were countered by financial challenges such as tax detriments, declines in finished steel contribution, and pressures from the U.S. manufacturing sector and Chinese steel exports. The company is hopeful about future improvements due to strategic initiatives and anticipated market recovery.Q1-2025 Updates
Positive Updates
Strong Safety Performance
Achieved a 50% sequential reduction in total case incident rate, with 97% of sites experiencing 0 lost time injuries.
Recycled Metals Business Improvement
Contribution from recycled metals improved, driven by cost reduction, productivity measures, and strong nonferrous demand.
Advanced Metal Recovery Technologies
Investments in advanced metal recovery technologies expected to generate over $40 million in annual EBITDA after full deployment.
Sustainability Achievements
Reduced Scope 1 and 2 emissions by 30% versus 2019 baseline and maintained 100% net carbon-free electricity usage.
Cost Reduction and Productivity Program
Achieved a 6% reduction in adjusted SG&A costs compared to the prior year.
Negative Updates
Deferred Tax Detriment
Adjusted EPS loss of $1.33 primarily due to an income tax detriment associated with deferred tax assets.
Finished Steel Contribution Decline
Finished steel contribution declined year-over-year due to weaker demand, 10% compression in metal spreads, and higher conversion costs.
Pressure on U.S. Manufacturing Sector
U.S. manufacturing sector in recessionary territory for two years, negatively impacting performance.
Elevated Chinese Steel Exports
Chinese steel exports increased by 25% year-over-year, affecting global steel demand and ferrous scrap demand.
Interest Expense Increase
Interest expense rose by $4 million year-over-year due to recent amendment to the credit facility.
Company Guidance
During the Radius Recycling Q1 2025 earnings call, the company provided guidance on several key metrics and strategic initiatives. The adjusted EPS loss was reported at $1.33, primarily due to an income tax detriment linked to deferred tax assets. Despite challenging market conditions, the recycled metals business showed improvement, driven by cost reduction measures and stronger nonferrous demand. Steel mill utilization was at 81%, higher than the U.S. average of 75%, despite a decline in finished steel contribution due to weaker domestic conditions. The company achieved nearly breakeven operating cash flow and continued its streak of 123 consecutive quarterly dividends. Capital expenditures for fiscal 2025 are projected to be around $60 million, with net debt standing at $430 million. Strategic priorities include investments in metal recovery technologies expected to yield over $40 million in annual EBITDA, expansion of 3PR services, and cost reduction efforts that reduced adjusted SG&A expenses by 6% year-over-year. Additionally, the company anticipates a significant ramp-up in returns from these technology investments by Q3 of fiscal 2025.Schnitzer Steel Industries Financial Statement Overview
Summary
Schnitzer Steel Industries faces financial challenges, particularly in profitability and cash flow management. Despite a stable asset base, increasing leverage and negative profitability metrics are concerning. Revenue growth and operational efficiency improvements are critical for future stability.Income Statement
The income statement highlights significant challenges in profitability. The company has experienced negative net income and EBIT for the TTM, with a declining gross profit margin. Despite a slight increase in revenue in the TTM compared to the previous year, the revenue growth rate is negative over the longer term, indicating sales difficulties. The negative EBITDA margin further underscores the operational inefficiencies and financial difficulties the company faces.45
Neutral
Balance Sheet
The balance sheet shows moderate stability with a reasonable debt-to-equity ratio; however, the increasing debt level and declining stockholders' equity are concerning. The equity ratio has decreased over time, which indicates growing leverage and potential risk. The company's return on equity is negative, reflecting poor profitability. Despite these challenges, the total asset base remains substantial, providing a cushion against short-term volatility.50
Neutral
Cash Flow
Cash flow analysis reveals considerable difficulties in maintaining positive free cash flow, with a negative free cash flow growth rate. The operating cash flow to net income ratio shows a disconnect between earnings and cash generation, as operating cash flow remains positive while net income is negative. The negative free cash flow to net income ratio further indicates a reliance on non-operational cash inflows to sustain operations.40
Negative
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.74B | 2.74B | 2.88B | 3.49B | 2.76B | 1.71B | Gross Profit |
| 158.46M | 177.10M | 307.71M | 488.07M | 453.19M | 208.62M | EBIT |
| -297.87M | -293.98M | -3.92M | 225.91M | 213.73M | 6.85M | EBITDA |
| -199.86M | -197.77M | 38.31M | 226.86M | 214.28M | 21.45M | Net Income Common Stockholders |
| -284.62M | -266.41M | -25.79M | 168.80M | 165.11M | -4.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.22M | 5.55M | 6.03M | 43.80M | 27.82M | 17.89M | Total Assets |
| 1.51B | 1.53B | 1.72B | 1.83B | 1.49B | 1.23B | Total Debt |
| 581.53M | 538.28M | 365.31M | 371.87M | 209.53M | 229.42M | Net Debt |
| 566.31M | 532.73M | 359.28M | 328.07M | 181.72M | 211.53M | Total Liabilities |
| 927.89M | 908.03M | 804.29M | 868.12M | 654.58M | 549.49M | Stockholders Equity |
| 580.43M | 623.11M | 908.18M | 953.98M | 835.76M | 676.71M |
| Cash Flow | Free Cash Flow | ||||
| -38.81M | -129.66M | 9.85M | 87.56M | 71.20M | 42.59M | Operating Cash Flow |
| 21.03M | -53.41M | 139.36M | 237.68M | 190.06M | 124.60M | Investing Cash Flow |
| -53.89M | -78.64M | -143.97M | -316.15M | -117.65M | -78.86M | Financing Cash Flow |
| 24.64M | 131.47M | -33.13M | 94.57M | -62.82M | -40.50M |
Schnitzer Steel Industries Technical Analysis
Positive
29.66
Price Trends
29.18
Positive
22.03
Positive
19.34
Positive
Market Momentum
0.32
Positive
71.84
Negative
83.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDUS, the sentiment is Positive. The current price of 29.66 is above the 20-day moving average (MA) of 29.49, above the 50-day MA of 29.18, and above the 200-day MA of 19.34, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 71.84 is Negative, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDUS.
Schnitzer Steel Industries Risk Analysis
Schnitzer Steel Industries disclosed 30 risk factors in its most recent earnings report. Schnitzer Steel Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Schnitzer Steel Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.66B | 10.01 | 5.86% | 3.58% | -9.33% | -51.03% | |
66 Neutral | $1.33B | 12.01 | 11.10% | 2.43% | -6.82% | -36.02% | |
55 Neutral | $1.93B | ― | -16.28% | 14.06% | -9.84% | -14783.33% | |
53 Neutral | $836.19M | ― | -41.03% | 2.53% | -2.75% | -339.59% | |
53 Neutral | $352.18M | 21.96 | 2.95% | 1.93% | -9.65% | -61.57% | |
51 Neutral | $2.01B | -1.11 | -21.16% | 3.67% | 2.69% | -30.65% |
* Basic Materials Sector Average
Performance Comparison
RDUS
Schnitzer Steel Industries
29.66
14.12
90.86%
GGB
Gerdau SA
2.82
-0.35
-11.04%
SID
Companhia Siderúrgica Nacional
1.48
-0.82
-35.65%
ZEUS
Olympic Steel
31.86
-17.33
-35.23%
WS
Worthington Steel, Inc.
26.26
-4.66
-15.07%
Schnitzer Steel Industries Corporate Events
M&A Transactions
FTC Approves Early Termination for Radius Merger
Neutral
May 14, 2025
On March 13, 2025, Radius Recycling, Inc., Toyota Tsusho America, Inc., and TAI Merger Corporation entered into a merger agreement, with Radius set to become a wholly owned subsidiary of Toyota Tsusho America. On May 12, 2025, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, satisfying one of the conditions for the merger’s completion, which is expected in the second half of 2025, pending other customary approvals.
The most recent analyst rating on (RDUS) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Schnitzer Steel Industries stock, see the RDUS Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.