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Ryerson Holdings (RYI)
NYSE:RYI
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Ryerson Holdings
(NYSE:RYI)
56Neutral
Positive Factors
Financial Performance
Ryerson reduced its gross debt balance, a move viewed positively despite not repurchasing shares.
Order Activity
Ryerson has experienced a significant increase in order activity, reaching their highest levels since late 2021.
Profitability
Ryerson's focus on optimization and cost management is expected to lead to improved profitability.
Negative Factors
Leverage
Net leverage for Ryerson increased slightly to 3.9x, remaining above the targeted range.
Ryerson Holdings (RYI) vs. S&P 500 (SPY)
Market Cap
$641.02M
Dividend Yield3.21%
Average Volume (3M)221.41K
Price to Earnings (P/E)37.9
Beta (1Y)1.33
Revenue Growth-9.98%
EPS Growth-106.51%
CountryUS
Employees4,200
SectorIndustrials
Sector Strength78
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.27
Shares Outstanding32,196,087
10 Day Avg. Volume183,641
30 Day Avg. Volume221,410
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.21
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.70
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.00Price Target Upside20.54% Upside
Rating ConsensusHold
Number of Analyst Covering2
Ryerson Holdings Business Overview & Revenue Model
Company DescriptionRyerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States, Canada, Mexico, and China. It offers a line of products in carbon steel, stainless steel, alloy steels, and aluminum, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing. The company also provides various processing services, such as bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials. It serves various industries, including commercial ground transportation, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durable equipment, HVAC manufacturing, construction equipment manufacturing, food processing and agricultural equipment manufacturing, and oil and gas. The company was founded in 1842 and is headquartered in Chicago, Illinois.
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
Negative
19.91
Price Trends
23.11
Negative
22.03
Negative
21.57
Negative
Market Momentum
-0.15
Positive
35.49
Neutral
50.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYI, the sentiment is Negative. The current price of 19.91 is below the 20-day moving average (MA) of 22.12, below the 50-day MA of 23.11, and below the 200-day MA of 21.57, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 50.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $519.77M | 27.20 | 6.61% | 0.35% | -0.33% | -7.06% | |
70 Outperform | $2.60B | 48.62 | 13.01% | 0.78% | 2.61% | -53.74% | |
67 Neutral | $393.66M | 11.68 | 9.58% | ― | 10.81% | 63.68% | |
66 Neutral | $2.55B | 42.77 | 6.56% | 1.32% | -69.82% | -78.10% | |
63 Neutral | $4.21B | 11.55 | 5.28% | 250.72% | 4.13% | -9.42% | |
61 Neutral | $268.52M | 10.65 | 10.78% | ― | -1.16% | 227.49% | |
56 Neutral | $641.02M | 37.86 | -1.00% | 3.21% | -9.98% | -106.51% |
* Industrials Sector Average
Performance Comparison
RYI
Ryerson Holdings
21.05
-1.03
-4.66%
AZZ
AZZ
86.88
12.49
16.79%
IIIN
Insteel Industries
33.81
1.97
6.19%
NWPX
Northwest Pipe Company
39.74
7.02
21.45%
WOR
Worthington Industries
51.15
-7.39
-12.62%
MEC
Mayville Engineering Company
13.32
-0.57
-4.10%
Ryerson Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -14.84%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sequential growth in sales volume and improved adjusted EBITDA, driven by significant CapEx investments and increased liquidity. However, the net loss increased, debt levels rose, and challenges persisted in the stainless steel market and OEM contracts, leading to a mixed performance outlook.Q1-2025 Updates
Positive Updates
Strong Sequential Volume Growth
Ryerson's first quarter sales volume of 500,000 tons was approximately 12% higher quarter-over-quarter, with a nearly 14% increase in North American shipments, outperforming the industry by 3 percentage points.
Improved Adjusted EBITDA
Ryerson achieved adjusted EBITDA excluding LIFO of $32.8 million in the first quarter of 2025, compared to $10.3 million in the prior quarter, due to better-than-anticipated margins and effective operating cost controls.
Significant CapEx Investments
Invested $8 million in capital expenditures during the first quarter, including advancements in the Shelbyville, Kentucky facility, expected to improve productivity and service enhancements.
Increased Global Liquidity
Global liquidity increased to $490 million in the first quarter from $451 million in the fourth quarter, driven by higher receivables.
Negative Updates
Net Loss Increase
Net loss attributable to Ryerson was $5.6 million or $0.18 loss per diluted share, compared to $4.3 million and diluted loss per share of $0.13 in the prior quarter.
Rising Debt and Leverage Ratio
Total debt increased to $498 million from $468 million in the prior quarter, with a leverage ratio rising to 4.3 times, above the target range of two times, due to lower trailing 12-month adjusted EBITDA excluding LIFO.
Challenges in Stainless Steel Market
Stainless steel products faced a price decline of approximately 3%, contributing to a drag in performance across quarters.
OEM Contract Business Slowdown
OEM contracts faced significant headwinds, reflecting weaknesses in specific markets like Class A trucks, machinery, equipment, and appliances.
Company Guidance
During the first quarter of 2025, Ryerson Holdings Corporation provided guidance indicating a sequential improvement in operating income for the second quarter despite challenging market dynamics. The company reported a first-quarter sales volume of 500,000 tons, marking a 12% increase quarter-over-quarter, and forecasted adjusted EBITDA for Q2, 2025 to be between $40 million to $45 million, with earnings per share expected to range from $0.07 to $0.14. Ryerson anticipates revenues of $1.15 billion to $1.19 billion with an average selling price increase of 3% to 4% for the second quarter. The company also reaffirmed its $50 million annual CapEx target for the year and noted a leverage ratio of 4.3 times, expecting improvement throughout 2025. Despite some headwinds from the stainless steel market, Ryerson saw market share gains across various product categories and expects stable inventory levels and pricing conditions in the upcoming quarter.Ryerson Holdings Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Ryerson Holdings Elects New Director at Annual Meeting
Positive
Apr 22, 2025
On April 17, 2025, Ryerson Holding Corporation held its 2025 Annual Meeting of Stockholders, where shareholders voted on several proposals. Bruce T. Crawford was elected as a Class II Director, and KPMG LLP was ratified as the company’s independent registered public accounting firm for 2025. Additionally, a resolution approving the compensation of named executive officers was adopted. Ryerson announced the election of Lt. Gen. Bruce T. Crawford, U.S. Army (Ret.), to its Board of Directors, bringing extensive experience in information technology, cybersecurity, and operations. This strategic addition is expected to enhance Ryerson’s operational and financial performance as the company continues to optimize its investments and improve customer experience.
Spark’s Take on RYI Stock
According to Spark, TipRanks’ AI Analyst, RYI is a Neutral.
Ryerson Holdings faces significant challenges with declining revenue, negative profitability, and valuation concerns due to negative earnings. However, strong cash management and strategic investments may support future performance. The earnings call highlights mixed sentiment with potential for recovery, but technical indicators show weak momentum, reflecting current market uncertainties.
To see Spark’s full report on RYI stock, click here.
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.