Ryerson Holdings (RYZ) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: 2.84%
• Average Volume (3M): 467.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -4.89%
• EPS Growth: -214.50%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): -1.01
• Shares Outstanding: 51,482,716
• 10 Day Avg. Volume: 460,409
• 30 Day Avg. Volume: 467,025
• PEG Ratio: -0.02
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 22.76
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 43.75
• 1Y Price Target: $31.00
• Price Target Upside: 45.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.14
• Revenue Forecast (FY): $7.05B

• Rating: 54 Neutral
• Price Target: $21.00 ▼(-1.69% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held back primarily by weakened financial performance (recent losses and higher leverage), partially offset by a more encouraging near-term outlook from the latest earnings call (Q1 profitability guidance and sizable synergy plan). Technicals are mildly supportive (price above key moving averages) but momentum is mixed, and valuation is constrained by negative earnings despite a moderate dividend yield.

Positive Factors

Scale and synergy from Olympic Steel merger

The Olympic Steel merger materially expands scale (combined >6,000 employees, ~160 locations) and targets $120M annual synergies over two years. Greater scale should lower per‑unit costs, improve purchasing leverage, broaden customer reach and enable durable margin recovery if integration executes.

Healthy operating cash flow and improved liquidity

Consistent positive operating cash flow and sizeable liquidity ($502M) provide durable financial flexibility during integration. Quarterly reductions in gross debt and improved trailing leverage show cash conversion capacity that supports capex, synergies funding and gradual deleveraging without immediate capital markets dependence.

Targeted capital investments to raise throughput and returns

A focused $50M same‑store capex plan (≈$75M including Olympic) targets capacity and productivity improvements with cited paybacks. These targeted investments can sustainably raise throughput, reduce unit costs and improve long‑term operating margins when deployed at key locations.

Negative Factors

Elevated leverage versus historical levels

Debt increasing to ~$1.13B and debt/equity ~1.51x leaves less financial flexibility against cyclical demand. Higher leverage magnifies earnings volatility risk, constrains capital allocation choices and lengthens the path to management's 0.5x–2.0x target if commodity or end‑market weakness persists.

Deteriorated profitability and margin compression

Sustained margin erosion and a swing to operating losses reflect weaker spread between mill costs and selling prices. If competitive or end‑market pressure persists, restoring durable gross margins will require structural pricing power improvements or meaningful cost reductions beyond one‑time items.

Commodity cost pass‑through and LIFO volatility

Significant LIFO charges and delayed pass‑through of rapid commodity cost increases create recurring earnings volatility tied to inventory accounting and market cycles. This structural exposure can produce unpredictable reported earnings and complicate consistent cash flow conversion during commodity price swings.

Ryerson Holdings Business Overview & Revenue Model

Company Description

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States and internationally. 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 processing services. It serves commercial transportation, fabrication and welding, machinery and equipment, consumer products, heavy equipment, climate, power, and machine shop industries. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Ryerson makes money primarily by selling industrial metal products and by charging for value-added processing services. Its core revenue model is distribution-based: it purchases metal (e.g., carbon steel, stainless steel, aluminum and other alloys) from mills and other suppliers, holds inventory across its service-center network, and sells that material to customers at a selling price that reflects its cost of materials plus a gross margin. A major driver of revenue is shipment volume (tons shipped) multiplied by average selling price per ton, which fluctuates with underlying market metal prices and product mix. In addition to resale of metal, Ryerson generates revenue from processing and fabrication services—such as cutting-to-length, slitting, leveling, sawing, shearing, machining, or other customer-specific preparation—typically billed as service/processing fees or embedded in delivered pricing. The company’s earnings are influenced by metals price and demand cycles, its ability to manage inventory and working capital (including gains or losses as inventory costs lag or lead market prices), customer and end-market demand, and its supplier relationships and purchasing terms. Specific significant partnerships: null.

Ryerson Holdings Financial Statement Overview

Summary

Overall fundamentals are below average: profitability deteriorated into operating losses and a sizable net loss in 2025, while leverage increased (debt up to ~$1.13B; debt/equity ~1.51x). Cash flow is a relative bright spot with positive operating cash flow (~$87M) and positive free cash flow (~$35.5M) in 2025, but the cushion versus debt is modest (OCF/debt ~0.13).

Income Statement

Profitability has deteriorated meaningfully from 2022–2023 to 2024–2025. Revenue is essentially flat recently (2025 up ~2.2% after a slight decline in 2024), but margins compressed sharply: gross margin fell to ~17.1% in 2025 from ~20.0% in 2023, and the company moved to operating losses in 2025 (negative EBIT) with a net loss of ~$56M. The earlier cycle (2021–2022) showed strong earnings power and higher margins, but the latest two years highlight a weaker pricing/spread environment and higher earnings volatility.

Balance Sheet

Leverage has risen again and financial flexibility looks more constrained than in the 2022–2023 period. Total debt increased to ~$1.13B in 2025 from ~$0.80B in 2023, and debt relative to equity climbed to ~1.51x (vs. ~0.89x in 2023). Equity remains sizable (~$753M in 2025), but negative returns on equity in 2024–2025 reflect the swing back to losses. The balance sheet is not distressed based on equity levels, but higher leverage into a softer earnings backdrop increases risk.

Cash Flow

Cash generation remains a relative bright spot despite weaker earnings. Operating cash flow stayed positive in 2025 (~$87M) and free cash flow was also positive (~$35.5M), rebounding strongly versus 2024’s lower free cash flow (~$105M in 2024 vs. ~$243M in 2023, then down again in 2025). However, cash flow has become less robust than the 2022–2023 peak, and operating cash flow as a share of debt is modest in 2025 (~0.13), indicating less cushion if conditions remain weak.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.57B	4.60B	5.11B	6.32B	5.68B
Gross Profit	767.70M	817.60M	1.00B	1.31B	1.19B
EBITDA	47.50M	103.60M	279.90M	639.20M	538.80M
Net Income	-56.40M	-8.60M	145.70M	391.00M	294.30M
Balance Sheet
Total Assets	2.57B	2.60B	2.57B	2.33B	2.37B
Cash, Cash Equivalents and Short-Term Investments	27.80M	29.30M	55.40M	40.50M	52.40M
Total Debt	1.15B	1.19B	1.16B	841.50M	1.06B
Total Liabilities	1.80B	1.77B	1.66B	1.44B	1.82B
Stockholders Equity	753.10M	815.30M	905.90M	885.10M	537.20M
Cash Flow
Free Cash Flow	35.50M	105.30M	243.20M	396.10M	-24.30M
Operating Cash Flow	87.00M	204.90M	365.10M	501.20M	35.00M
Investing Cash Flow	-53.60M	-142.70M	-262.10M	-160.00M	94.40M
Financing Cash Flow	-36.50M	-86.80M	-88.30M	-350.10M	-137.90M

Ryerson Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYZ, the sentiment is Negative. The current price of 21.36 is below the 20-day moving average (MA) of 24.89, below the 50-day MA of 26.90, and below the 200-day MA of 23.33, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYZ.

Ryerson Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	78 Outperform	$3.65B	19.10	26.34%	0.67%	1.55%	701.41%
NWPX	74 Outperform	$688.48M	16.91	9.20%	―	7.61%	25.35%
WOR	70 Outperform	$2.37B	24.74	11.16%	1.27%	7.43%	148.83%
IIIN	68 Neutral	$616.80M	20.81	13.77%	3.49%	22.39%	112.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	58 Neutral	$345.62M	-47.25	-3.30%	―	-12.38%	-0.71%
RYZ	54 Neutral	$1.07B	-14.33	-7.15%	2.84%	-4.89%	-214.50%