Schnitzer Steel Industries (RDUS) AI Stock Analysis

• Market Cap: $820.96M
• Dividend Yield: 2.58%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -2.75%
• EPS Growth: -339.59%
• Country: US
• Employees: 3,011
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Steel
• EPS (TTM): -9.98
• Shares Outstanding: 28,001,982
• 10 Day Avg. Volume: 1,531,454
• 30 Day Avg. Volume: 1,398,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.30
• Price to Cash Flow (P/CF): -107.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: -24.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

The overall score reflects significant financial challenges, particularly in profitability and cash flow management. Strong technical indicators show upward momentum, but caution is advised due to potential overbought conditions and valuation concerns. Strategic initiatives highlighted in the earnings call provide a positive outlook amidst challenging market conditions.

Schnitzer Steel Industries Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Schnitzer 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 29.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 29.11 is above the 20-day moving average (MA) of 29.00, above the 50-day MA of 21.08, and above the 200-day MA of 17.22, indicating a bullish trend. The MACD of 2.08 indicates Positive momentum. The RSI at 79.95 is Negative, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDUS.

Schnitzer Steel Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WS	66 Neutral	$1.23B	11.07	11.10%	2.64%	-6.82%	-36.02%
GGB	66 Neutral	$5.20B	6.27	8.98%	5.44%	-9.51%	-45.87%
RDUS	58 Neutral	$820.96M	―	-41.03%	2.58%	-2.75%	-339.59%
SID	56 Neutral	$1.97B	―	-17.19%	13.78%	-10.94%	-756.50%
ZEUS	52 Neutral	$341.47M	15.54	4.07%	1.99%	-10.03%	-48.82%
Sector *	48 Neutral	$1.91B	-1.66	-22.29%	3.86%	0.68%	-27.44%

Schnitzer Steel Industries Corporate Events

Schnitzer Steel Industries Appoints New COO for Growth

Radius Recycling, Inc. has appointed Marc Hathhorn as Executive Vice President and Chief Operating Officer, bringing over 30 years of leadership in the mining industry. Previously with Peabody Energy, Hathhorn’s track record includes achieving operational excellence and implementing cost-effective strategies. His role will support Radius’s strategic goals, such as advancing metal recovery technologies and expanding recycling services. This leadership change aligns with Radius’s efforts to capitalize on global manufacturing growth and infrastructure investments.

Schnitzer Steel Announces Board Member Resignation

Michael W. Sutherlin has resigned from the Board of Directors of Radius Recycling, Inc. due to personal reasons, not due to any disagreements with the company. His departure leaves the board with seven members, maintaining the same number as before the recent addition of independent member Mauro Gregorio.

Schnitzer Steel Expands Board with Industry Veteran

Radius Recycling, Inc. has expanded its board of directors by appointing Mauro Gregorio, a seasoned executive with a 40-year career at Dow Inc., as a new independent director. Known for his expertise in global commodities markets and performance optimization, Gregorio’s addition is anticipated to bolster the company’s strategic growth, particularly in the recycled metal products sector. This move aligns with Radius’ objectives to meet the increasing demand for its services globally.