Schnitzer Steel Industries (RDUS) AI Stock Analysis

• Market Cap: $847.73M
• Dividend Yield: 2.5%
• Average Volume (3M): 694.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 4.13%
• EPS Growth: 62.89%
• Country: US
• Employees: 3,011
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): -0.39
• Shares Outstanding: 28,058,000
• 10 Day Avg. Volume: 662,280
• 30 Day Avg. Volume: 694,279
• PEG Ratio: -7.57
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.69
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: -1.68
• 1Y Price Target: $29.00
• Price Target Upside: -3.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $31.00 ▲(3.33%Upside)

The most significant factor influencing the score is the company's challenging financial performance, marked by negative profitability and high leverage. This is partially offset by strong technical indicators suggesting bullish momentum. The acquisition by Toyota Tsusho adds a positive dimension but the overall valuation remains weak due to negative earnings.

Schnitzer Steel Industries Business Overview & Revenue Model

Company Description

Schnitzer 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 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 significant financial challenges, particularly in profitability and cash flow management. Despite a stable asset base, the company's increasing leverage and negative profitability metrics highlight areas of concern. Strategic initiatives to enhance revenue growth and improve operational efficiency are critical for future financial 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
EBITDA	-199.86M	-197.77M	38.31M	226.86M	214.28M	21.45M
Net Income	-284.62M	-266.41M	-25.79M	168.80M	165.11M	-4.14M
Balance Sheet
Total Assets	1.46B	1.53B	1.72B	1.83B	1.49B	1.23B
Cash, Cash Equivalents and Short-Term Investments	5.44M	5.55M	6.03M	43.80M	27.82M	17.89M
Total Debt	561.86M	538.28M	365.31M	371.87M	209.53M	229.42M
Total Liabilities	913.18M	908.03M	804.29M	868.12M	654.58M	549.49M
Stockholders Equity	542.72M	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: 30.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 30 is above the 20-day moving average (MA) of 29.68, above the 50-day MA of 29.56, and above the 200-day MA of 21.13, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 72.10 is Negative, neither overbought nor oversold. The STOCH value of 90.09 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	77 Outperform	$1.62B	14.58	10.75%	2.02%	-9.83%	-28.70%
GGB	75 Outperform	$5.64B	10.05	5.86%	5.34%	-9.33%	-51.03%
ZEUS	57 Neutral	$369.82M	23.06	2.95%	2.29%	-9.65%	-61.57%
RDUS	55 Neutral	$847.73M	―	-17.65%	2.50%	4.13%	62.89%
SID	53 Neutral	$1.85B	―	-16.28%	15.82%	-9.84%	-14783.33%
Sector *	44 Neutral	C$963.03M	-6.69	-13.68%	1.90%	17.55%	-32.71%

Schnitzer Steel Industries Corporate Events

Toyota Tsusho Completes Acquisition of Radius Recycling

On July 10, 2025, Toyota Tsusho America, Inc. completed the acquisition of Radius Recycling, Inc., a prominent North American recycling company. This acquisition supports Toyota Tsusho’s circular economy initiatives and strengthens Radius’ leadership in the recycling industry. Following the merger, Radius will continue to operate as a standalone business, leveraging Toyota Tsusho’s resources while its common shares will be delisted from the Nasdaq Capital Market.

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.

Schnitzer Steel’s Radius Set for July 2025 Merger

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. The merger received all necessary regulatory approvals, including from the Committee on Foreign Investment in the United States, and is expected to close on July 10, 2025.

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.

Schnitzer Steel Amends Credit Agreement, Reports Q3 Loss

On June 16, 2025, Schnitzer Steel Industries and its subsidiaries amended their credit agreement, reducing revolving commitments from $800 million to $625 million and adjusting EBITDA calculations, among other changes. The company also announced a net loss of $16 million and an adjusted EBITDA of $22 million for the third quarter of fiscal 2025, indicating improvements. The pending merger with Toyota Tsusho America, Inc. is expected to close in the second half of 2025, pending regulatory 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.

Radius Recycling Approves Merger with Toyota Tsusho America

On June 5, 2025, Radius Recycling, Inc., an Oregon-based company, held a special meeting of shareholders where they approved the proposals related to a merger with Toyota Tsusho America, Inc. The merger will result in Radius becoming a wholly owned subsidiary of Toyota Tsusho America, with the merger expected to close in the second half of 2025, subject to necessary conditions. This approval signifies a strategic move for Radius, potentially impacting its market positioning and operations, as it becomes part of a larger corporate structure.

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.

FTC Approves Early Termination for Radius Merger

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.