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Ryerson Holdings (RYI)
NYSE:RYI
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Ryerson Holdings
(NYSE:RYI)
64Neutral
Positive Factors
Debt Management
Despite not repurchasing shares, Ryerson reduced its gross debt balance, which is seen as a positive move.
Financial Performance
Ryerson expects shipments to increase by 11% to 13% quarter-over-quarter, with an expected adjusted EBITDA above prior expectations.
Order Activity
Ryerson has seen a significant increase in order activity recently, especially in the spot/transactional and value-added sales, with bookings at their highest level since late 2021.
Negative Factors
Leverage
Net leverage increased slightly to 3.9x, from 3.8x last quarter, and currently remains above the targeted range.
Ryerson Holdings (RYI) vs. S&P 500 (SPY)
Market Cap
$733.84M
Dividend Yield3.25%
Average Volume (3M)242.38K
Price to Earnings (P/E)37.9
Beta (1Y)1.55
Revenue Growth-9.98%
EPS Growth-106.51%
CountryUS
Employees4,200
SectorIndustrials
Sector Strength66
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.27
Shares Outstanding31,850,903
10 Day Avg. Volume211,858
30 Day Avg. Volume242,380
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)2.00
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.00Price Target Upside8.51% Upside
Rating ConsensusHold
Number of Analyst Covering2
Ryerson Holdings Business Overview & Revenue Model
Company DescriptionRyerson Holdings (RYI) is a leading processor and distributor of industrial metals, primarily serving the North American market. The company operates in various sectors, including manufacturing, transportation, and construction, providing a wide range of products such as stainless steel, aluminum, carbon steel, and alloy steels. Ryerson's core services include metal processing, distribution, and logistics, catering to the diverse needs of its industrial clientele.
How the Company Makes MoneyRyerson Holdings generates revenue primarily through the sale and distribution of processed and fabricated metal products. The company sources raw materials from various suppliers and processes them into finished goods that meet customer specifications. Key revenue streams include direct sales to manufacturers, fabricators, and other industrial customers who require metal products for their operations. Ryerson also benefits from value-added services such as cutting, forming, machining, and logistics, which enhance its product offerings and provide additional income. Significant partnerships with metal suppliers and manufacturers enable Ryerson to maintain a robust supply chain and competitive pricing, contributing to its overall earnings.
Ryerson Holdings Financial Statement Overview
Summary
Ryerson Holdings exhibits a mixed financial performance. The income statement reveals declining revenue and profitability, while the balance sheet indicates improved leverage but reduced equity. Positive operating cash flow demonstrates strong cash management, offsetting some profitability concerns. Overall, the company faces challenges with revenue growth and profitability but maintains operational cash flow strength.Income Statement
The gross profit margin has seen a decline from previous years, dropping to 18.14% in 2024 from 20% in 2023. Net profit margin is negative at -0.19% in 2024, indicating a net loss. Revenue has decreased by approximately 10% from 2023 to 2024, suggesting a downward trend. The EBIT and EBITDA margins have also narrowed significantly, reflecting reduced operating efficiency.55
Neutral
Balance Sheet
The debt-to-equity ratio improved to 0.45 in 2024 from 0.89 in 2023, indicating better leverage management. However, stockholders' equity has decreased. The return on equity (ROE) has turned negative, reflecting the net loss. The equity ratio at 33.43% in 2024 shows moderate financial stability but indicates a reliance on liabilities.60
Neutral
Cash Flow
Free cash flow growth rate has turned negative, with a drop in free cash flow from 2023 to 2024. However, operating cash flow remains positive and the operating cash flow to net income ratio is strong, suggesting effective cash management despite net losses. The free cash flow to net income ratio is high, reflecting strong cash flow relative to earnings.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.60B | 5.11B | 6.32B | 5.68B | 3.47B | Gross Profit |
| 834.20M | 1.02B | 1.31B | 1.15B | 621.10M | EBIT |
| 31.50M | 228.10M | 578.70M | 274.60M | 66.80M | EBITDA |
| 113.20M | 290.90M | 634.10M | 492.50M | 39.00M | Net Income Common Stockholders |
| -8.60M | 145.70M | 391.00M | 294.30M | -65.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.70M | 54.30M | 39.20M | 51.20M | 61.40M | Total Assets |
| 2.44B | 2.57B | 2.33B | 2.37B | 1.80B | Total Debt |
| 367.40M | 803.80M | 607.30M | 849.00M | 853.70M | Net Debt |
| 339.70M | 749.50M | 568.10M | 797.80M | 792.30M | Total Liabilities |
| 1.61B | 1.66B | 1.44B | 1.82B | 1.66B | Stockholders Equity |
| 815.30M | 905.90M | 885.10M | 537.20M | 138.80M |
| Cash Flow | Free Cash Flow | |||
| 105.30M | 243.20M | 396.10M | -24.30M | 251.90M | Operating Cash Flow |
| 204.90M | 365.10M | 501.20M | 35.00M | 277.90M | Investing Cash Flow |
| -142.70M | -262.10M | -160.00M | 94.40M | -25.90M | Financing Cash Flow |
| -86.80M | -88.30M | -350.10M | -137.90M | -250.20M |
Ryerson Holdings Technical Analysis
Neutral
23.04
Price Trends
22.94
Positive
22.52
Positive
21.26
Positive
Market Momentum
0.10
Positive
47.31
Neutral
47.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYI, the sentiment is Neutral. The current price of 23.04 is below the 20-day moving average (MA) of 23.64, above the 50-day MA of 22.94, and above the 200-day MA of 21.26, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RYI.
Ryerson Holdings Risk Analysis
Ryerson Holdings disclosed 39 risk factors in its most recent earnings report. Ryerson Holdings 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
Ryerson Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $15.16B | 18.23 | 11.71% | 1.54% | -6.56% | -31.89% | |
73 Outperform | $18.58B | 12.59 | 17.27% | 1.44% | -6.68% | -32.96% | |
71 Outperform | $28.14B | 14.41 | 9.79% | 1.78% | -11.46% | -53.33% | |
66 Neutral | $5.22B | 76.70 | 1.78% | 1.56% | -7.93% | -89.29% | |
64 Neutral | $733.84M | 37.86 | -1.00% | 3.25% | -9.98% | -106.51% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.11% | 3.81% | -13.91% | |
49 Neutral | $9.74B | 27.51 | 3.43% | 0.47% | -13.48% | -56.94% |
* Industrials Sector Average
Performance Comparison
RYI
Ryerson Holdings
23.04
-9.32
-28.80%
CMC
Commercial Metals Company
46.18
-11.97
-20.58%
NUE
Nucor
121.95
-75.69
-38.30%
RS
Reliance Steel
286.28
-41.81
-12.74%
STLD
Steel Dynamics
123.97
-23.60
-15.99%
X
United States Steel
43.00
1.38
3.32%
Ryerson Holdings Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 1.14% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with both positive and negative aspects. While Ryerson reported increased sales activity and market share gains, challenges such as decreased sales volume, lower average selling prices, and increased net debt leverage were highlighted. The company expressed optimism for 2025, but the past year's performance was hindered by challenging market conditions.Highlights
Increased Sales Quote and Order Activity
Since mid-January, Ryerson reported the highest levels of sales quote and order activity since the second quarter of 2021, indicating a positive trend in demand.
Market Share Gains in 2024
Ryerson managed to gain market share, with North American volumes down 1% compared to the industry average of 3%.
Optimism for 2025
Ryerson expressed optimism for 2025, citing modernization and strategic investments expected to drive sustainable value creation.
Improved Financial Liquidity
Ryerson ended the fourth quarter with $451 million in global liquidity, allowing for continued operational flexibility.
Completion of Major Modernization Investments
Ryerson completed major modernization investments, including the expansion of the Shelbyville, Kentucky facility, enhancing productivity and value-added capabilities.
Lowlights
Decreased Sales Volume and Revenue
The fourth quarter sales volume was 7.8% lower quarter over quarter, and net sales decreased by 10.6% from the third quarter of 2024.
Net Loss in Fourth Quarter
Ryerson reported a net loss attributable to the company of $4.3 million or $0.13 per diluted share in the fourth quarter.
Lower Average Selling Prices
The average selling price decreased by 3% quarter over quarter, with significant decreases in carbon, aluminum, and stainless steel products.
Increased Net Debt Leverage
Ryerson ended the quarter with a net debt leverage of 3.9 times, above the target range due to lower adjusted EBITDA generation.
Challenging 2024 Market Conditions
Ryerson faced a contraction environment in 2024, with declining commodity prices and lower average selling prices impacting financial performance.
Company Guidance
During the Ryerson Holding Corporation's fourth quarter 2024 earnings call, the company provided guidance for the upcoming first quarter of 2025. Ryerson anticipates a sequential increase in volumes by 11% to 13% compared to the fourth quarter, with revenues projected to range between $1.12 billion and $1.15 billion. The average selling price is expected to rise by 0% to 2%. Adjusted EBITDA, excluding LIFO, is forecasted to fall between $28 million and $32 million, while LIFO expenses are estimated at $6 million to $8 million. The company also reported a planned reduction in capital expenditures to $50-$55 million for 2025, following a significant investment cycle. Ryerson ended the fourth quarter of 2024 with $92 million in cash flow from operations and maintained a net debt of $440 million, with an available global liquidity of $451 million. Additionally, Ryerson declared a quarterly dividend of $0.1875 per share for the first quarter of 2025, consistent with the prior quarter.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.