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Schnitzer Steel Industries

Nasdaq:SCHN
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SCHN
Nasdaq
$326M
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. The last earnings update was 83 days ago. More info.


Add to Portfolio Compare Print
  • Schnitzer Steel Industries has significant price volatility in the past 3 months.
SCHN Share Price and Events
7 Day Returns
-4.5%
NasdaqGS:SCHN
11.6%
US Metals and Mining
12.5%
US Market
1 Year Returns
-51.1%
NasdaqGS:SCHN
-29.3%
US Metals and Mining
-12.7%
US Market
SCHN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Schnitzer Steel Industries (SCHN) -4.5% -27.1% -44.6% -51.1% -42.8% -26%
US Metals and Mining 11.6% -18.7% -33.1% -29.3% -29.6% -13.8%
US Market 12.5% -14.7% -21.5% -12.7% 5.4% 17.5%
1 Year Return vs Industry and Market
  • SCHN underperformed the Metals and Mining industry which returned -29.3% over the past year.
  • SCHN underperformed the Market in United States of America which returned -12.7% over the past year.
Price Volatility
SCHN
Industry
5yr Volatility vs Market

SCHN Value

 Is Schnitzer Steel Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Schnitzer Steel Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Schnitzer Steel Industries.

NasdaqGS:SCHN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-11-30) in USD $ 0.758
Payout Ratio Company Filings (2019-11-30) 2219.9%
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SCHN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.823 (1 + (1- 21%) (78.14%))
1.09
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.09 * 5.44%)
7.67%

Discounted Cash Flow Calculation for NasdaqGS:SCHN using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Schnitzer Steel Industries is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NasdaqGS:SCHN Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.76 / (7.67% - 1.74%)
$12.78
NasdaqGS:SCHN Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.78
Current discount Discount to share price of $12.02
= -1 x ($12.02 - $12.78) / $12.78
6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Schnitzer Steel Industries is available for.
Intrinsic value
6%
Share price is $12.02 vs Future cash flow value of $12.78
Current Discount Checks
For Schnitzer Steel Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Schnitzer Steel Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Schnitzer Steel Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Schnitzer Steel Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Schnitzer Steel Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SCHN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-11-30) in USD $1.21
NasdaqGS:SCHN Share Price ** NasdaqGS (2020-03-30) in USD $12.02
United States of America Metals and Mining Industry PE Ratio Median Figure of 36 Publicly-Listed Metals and Mining Companies 7.78x
United States of America Market PE Ratio Median Figure of 2,942 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Schnitzer Steel Industries.

NasdaqGS:SCHN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SCHN Share Price ÷ EPS (both in USD)

= 12.02 ÷ 1.21

9.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schnitzer Steel Industries is overvalued based on earnings compared to the US Metals and Mining industry average.
  • Schnitzer Steel Industries is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Schnitzer Steel Industries's expected growth come at a high price?
Raw Data
NasdaqGS:SCHN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-40.8%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 22 Publicly-Listed Metals and Mining Companies -0.09x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

NasdaqGS:SCHN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.93x ÷ -40.8%

-0.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schnitzer Steel Industries earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Schnitzer Steel Industries's assets?
Raw Data
NasdaqGS:SCHN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-11-30) in USD $25.08
NasdaqGS:SCHN Share Price * NasdaqGS (2020-03-30) in USD $12.02
United States of America Metals and Mining Industry PB Ratio Median Figure of 107 Publicly-Listed Metals and Mining Companies 1.07x
United States of America Market PB Ratio Median Figure of 5,143 Publicly-Listed Companies 1.26x
NasdaqGS:SCHN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SCHN Share Price ÷ Book Value per Share (both in USD)

= 12.02 ÷ 25.08

0.48x

* Primary Listing of Schnitzer Steel Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Schnitzer Steel Industries is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Schnitzer Steel Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Schnitzer Steel Industries has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SCHN Future Performance

 How is Schnitzer Steel Industries expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-40.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Schnitzer Steel Industries expected to grow at an attractive rate?
  • Schnitzer Steel Industries's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Schnitzer Steel Industries's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Schnitzer Steel Industries's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SCHN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SCHN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -40.8%
NasdaqGS:SCHN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.4%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SCHN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SCHN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-08-31 2,212 1
2021-08-31 1,888 90 18 2
2020-08-31 1,669 122 4 2
2020-03-31
NasdaqGS:SCHN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-11-30 1,974 167 33
2019-08-31 2,133 145 57
2019-05-31 2,255 169 104
2019-02-28 2,360 194 126
2018-11-30 2,445 164 154
2018-08-31 2,365 160 156
2018-05-31 2,189 103 115
2018-02-28 2,014 84 94
2017-11-30 1,837 79 65
2017-08-31 1,688 100 45
2017-05-31 1,584 99 43
2017-02-28 1,459 58 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Schnitzer Steel Industries's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Schnitzer Steel Industries's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SCHN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Schnitzer Steel Industries Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SCHN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-08-31
2021-08-31 0.66 0.66 0.66 1.00
2020-08-31 0.14 0.14 0.14 1.00
2020-03-31
NasdaqGS:SCHN Past Financials Data
Date (Data in USD Millions) EPS *
2019-11-30 1.21
2019-08-31 2.06
2019-05-31 3.79
2019-02-28 4.58
2018-11-30 5.58
2018-08-31 5.65
2018-05-31 4.15
2018-02-28 3.41
2017-11-30 2.34
2017-08-31 1.63
2017-05-31 1.56
2017-02-28 1.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Schnitzer Steel Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Schnitzer Steel Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Schnitzer Steel Industries has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SCHN Past Performance

  How has Schnitzer Steel Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Schnitzer Steel Industries's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Schnitzer Steel Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Schnitzer Steel Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Schnitzer Steel Industries's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Schnitzer Steel Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Schnitzer Steel Industries Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SCHN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-11-30 1,974.35 33.31 184.43
2019-08-31 2,132.78 56.59 189.08
2019-05-31 2,254.56 104.37 185.16
2019-02-28 2,359.58 126.14 193.10
2018-11-30 2,445.46 153.97 209.25
2018-08-31 2,364.72 156.11 210.88
2018-05-31 2,189.40 115.06 202.67
2018-02-28 2,014.07 94.29 196.94
2017-11-30 1,836.71 64.57 187.12
2017-08-31 1,687.59 44.90 171.57
2017-05-31 1,584.00 42.83 170.96
2017-02-28 1,458.51 37.25 164.21
2016-11-30 1,365.51 -14.10 153.98
2016-08-31 1,352.54 -18.06 154.91
2016-05-31 1,418.90 -22.69 159.61
2016-02-29 1,534.60 -42.20 157.71
2015-11-30 1,682.97 -193.38 166.28
2015-08-31 1,915.40 -189.78 170.59
2015-05-31 2,148.15 -193.68 177.38
2015-02-28 2,316.31 -181.85 182.89
2014-11-30 2,500.81 13.33 184.69
2014-08-31 2,534.93 8.73 187.51
2014-05-31 2,501.75 -288.25 184.22
2014-02-28 2,576.57 -290.87 188.30
2013-11-30 2,616.84 -286.00 193.09
2013-08-31 2,616.79 -277.20 189.75
2013-05-31 2,727.61 7.31 192.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Schnitzer Steel Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Schnitzer Steel Industries used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Schnitzer Steel Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Schnitzer Steel Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Schnitzer Steel Industries has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SCHN Health

 How is Schnitzer Steel Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Schnitzer Steel Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Schnitzer Steel Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Schnitzer Steel Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Schnitzer Steel Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Schnitzer Steel Industries Company Filings, last reported 4 months ago.

NasdaqGS:SCHN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-11-30 685.04 119.79 9.62
2019-08-31 701.30 97.32 12.38
2019-05-31 693.70 142.13 8.12
2019-02-28 680.85 163.08 13.17
2018-11-30 675.98 168.55 11.22
2018-08-31 670.11 107.38 4.72
2018-05-31 619.56 172.69 10.09
2018-02-28 587.10 210.82 15.01
2017-11-30 551.62 184.88 9.19
2017-08-31 537.49 145.12 7.29
2017-05-31 517.56 184.44 15.21
2017-02-28 502.68 209.48 9.83
2016-11-30 494.07 187.65 8.10
2016-08-31 501.43 192.52 26.82
2016-05-31 488.93 202.72 7.02
2016-02-29 477.07 197.84 8.94
2015-11-30 524.45 203.55 18.93
2015-08-31 538.55 228.16 22.76
2015-05-31 536.31 263.38 8.93
2015-02-28 545.34 313.52 7.60
2014-11-30 760.85 340.83 14.67
2014-08-31 775.98 319.37 25.67
2014-05-31 771.23 375.80 29.36
2014-02-28 766.78 378.91 20.40
2013-11-30 772.27 394.04 29.93
2013-08-31 781.20 376.17 13.48
2013-05-31 1,075.61 413.40 37.08
  • Schnitzer Steel Industries's level of debt (17.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (44.1% vs 17.5% today).
  • Debt is well covered by operating cash flow (139.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Schnitzer Steel Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Schnitzer Steel Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SCHN Dividends

 What is Schnitzer Steel Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.24%
Current annual income from Schnitzer Steel Industries dividends. Estimated to be 6.31% next year.
If you bought $2,000 of Schnitzer Steel Industries shares you are expected to receive $125 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Schnitzer Steel Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.98%).
  • Schnitzer Steel Industries's dividend is above the markets top 25% of dividend payers in United States of America (5.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SCHN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SCHN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-08-31 0.78 1.00
2021-08-31 0.76 2.00
2020-08-31 0.75 2.00
2020-03-31
NasdaqGS:SCHN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-30 0.750 5.023
2019-11-06 0.750 3.563
2019-08-02 0.750 3.392
2019-04-26 0.750 3.127
2019-01-31 0.750 3.075
2018-11-02 0.750 3.039
2018-08-03 0.750 2.783
2018-05-01 0.750 2.290
2018-04-05 0.750 2.394
2017-10-27 0.750 2.322
2017-07-28 0.750 2.778
2017-04-28 0.750 3.511
2017-01-27 0.750 3.463
2017-01-05 0.750 3.151
2016-07-28 0.750 3.363
2016-04-28 0.750 4.300
2016-01-28 0.750 4.576
2015-10-29 0.750 5.118
2015-07-30 0.750 4.707
2015-04-29 0.750 4.161
2015-02-02 0.750 4.635
2014-10-30 0.750 3.547
2014-07-31 0.750 3.003
2014-04-30 0.750 2.854
2014-02-10 0.750 2.773
2013-11-07 0.750 2.541
2013-08-02 0.750 2.720
2013-04-25 0.750 2.987
2013-02-01 0.750 2.734
2012-11-12 0.750 2.562
2012-07-30 0.750 2.574
2012-04-05 0.750 2.494
2012-01-30 0.068 0.159
2011-11-14 0.068 0.152
2011-08-01 0.068 0.161
2011-05-02 0.068 0.122
2011-01-24 0.068 0.109
2010-11-01 0.068 0.114
2010-08-02 0.068 0.142
2010-05-03 0.068 0.150
2010-02-01 0.068 0.136
2009-11-02 0.068 0.144
2009-08-03 0.068 0.128
2009-05-04 0.068 0.127

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Schnitzer Steel Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Schnitzer Steel Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Schnitzer Steel Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Schnitzer Steel Industries has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SCHN Management

 What is the CEO of Schnitzer Steel Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tamara Adler Lundgren
COMPENSATION $5,930,132
AGE 61
TENURE AS CEO 11.3 years
CEO Bio

Ms. Tamara L. Adler Lundgren has been the Chief Executive Officer and President of Schnitzer Steel Industries, Inc. since December 1, 2008. She joined Schnitzer Steel Industries in September 2005. She served as Chief Strategy Officer and Vice President of Schnitzer Steel Industries Inc. from September 2005 to April 2006. She served as the Chief Corporate Officer of Schnitzer Steel Industries, Inc. from March 2006 to December 2008 and served as its Chief Operating Officer and Executive Vice President from November 2006 to December 1, 2008. From 1996 to 2001, she served at Deutsche Bank AG in management positions and served as its Managing Director. She joined Deutsche Bank in 1996. She served as a Partner at Hogan & Hartson LLP in the Washington DC law firm. She served as Managing Director of Principal Investment Management Group at JPMorgan Chase & Co. since June 2004, which she joined in 2001. She was employed in Management positions at Goldman, Sachs & Co. She is a senior finance professional and lawyer with more than 25 years of structured finance, corporate and real estate experience in the United States and Europe. She has been the Chair of Portland Branch of Federal Reserve Bank of San Francisco since January 1, 2017. She is a Director of Federal Reserve Bank of San Francisco. She has been a Director of Schnitzer Steel Industries, Inc. since December 1, 2008 and The Parsons Corporation since July 2011. She has been an Independent Director of Ryder System, Inc. since October 1, 2012. She serves as a Director of Radian Financial Products Ltd. and US Chamber of Commerce in the United Kingdom. She served as a Director of FLIR Systems, Inc. from May 2, 2005 to December 1, 2012. She served as an Independent Director of NetBank Inc., from December 15, 2003 to May 2, 2006. She holds a Bachelor's degree in Political Science from Wellesley College and a J.D. from Northwestern University School of Law.

CEO Compensation
  • Tamara's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tamara's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Schnitzer Steel Industries management team in years:

5.7
Average Tenure
56
Average Age
  • The average tenure for the Schnitzer Steel Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Tamara Adler Lundgren

TITLE
President
COMPENSATION
$6M
AGE
61
TENURE
11.3 yrs

Richard Peach

TITLE
Senior VP
COMPENSATION
$2M
AGE
55
TENURE
12.3 yrs

Jeff Dyck

TITLE
Senior VP and Co-President of Cascade Steel & Scrap
COMPENSATION
$1M
AGE
56

Mike Henderson

TITLE
Senior VP and Co-President of Auto
COMPENSATION
$2M
AGE
60

Steven Heiskell

TITLE
Senior VP and Co-President of Auto & Metals Recycling Business
COMPENSATION
$2M
AGE
50
TENURE
5.2 yrs

Stefano Gaggini

TITLE
Deputy CFO
AGE
48
TENURE
6.3 yrs

Michael Bennett

TITLE
Senior Director of Investor Relations

Peter Saba

TITLE
Senior VP
COMPENSATION
$1M
AGE
57
TENURE
4.7 yrs

Rob Stone

TITLE
Vice President of Corporate Development
TENURE
3.6 yrs

Brian Shipley

TITLE
Deputy Chief of Staff
Board of Directors Tenure

Average tenure and age of the Schnitzer Steel Industries board of directors in years:

9.2
Average Tenure
69.5
Average Age
  • The tenure for the Schnitzer Steel Industries board of directors is about average.
Board of Directors

John Carter

TITLE
Chairman
COMPENSATION
$354K
AGE
73
TENURE
11.3 yrs

Tamara Adler Lundgren

TITLE
President
COMPENSATION
$6M
AGE
61
TENURE
11.3 yrs

Judi Johansen

TITLE
Independent Director
COMPENSATION
$218K
AGE
60
TENURE
14.2 yrs

Bill Larsson

TITLE
Independent Director
COMPENSATION
$215K
AGE
74
TENURE
14 yrs

Dave Jahnke

TITLE
Independent Director
COMPENSATION
$228K
AGE
66
TENURE
7.2 yrs

Wayland Hicks

TITLE
Lead Director
COMPENSATION
$227K
AGE
77
TENURE
5.4 yrs

Mike Sutherlin

TITLE
Independent Director
COMPENSATION
$200K
AGE
73
TENURE
4.8 yrs

Rhonda Hunter

TITLE
Independent Director
COMPENSATION
$200K
AGE
56
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Nov 19 Sell Stefano Gaggini Individual 04. Nov 19 04. Nov 19 -4,806 $22.25 $-106,934
05. Nov 19 Sell Peter Saba Individual 04. Nov 19 04. Nov 19 -9,333 $22.14 $-206,633
05. Nov 19 Sell Richard Peach Individual 05. Nov 19 05. Nov 19 -24,090 $21.86 $-526,607
05. Nov 19 Sell Michael Henderson Individual 04. Nov 19 05. Nov 19 -15,231 $22.22 $-338,001
05. Nov 19 Sell Steven Heiskell Individual 04. Nov 19 04. Nov 19 -14,379 $22.13 $-318,207
29. Apr 19 Sell Jeffrey Dyck Individual 26. Apr 19 26. Apr 19 -5,337 $23.94 $-127,768
X
Management checks
We assess Schnitzer Steel Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Schnitzer Steel Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SCHN News

Simply Wall St News

Introducing Schnitzer Steel Industries (NASDAQ:SCHN), The Stock That Dropped 23% In The Last Five Years

Schnitzer Steel Industries became profitable within the last five years. … NasdaqGS:SCHN Income Statement, August 28th 2019 It is of course excellent to see how Schnitzer Steel Industries has grown profits over the years, but the future is more important for shareholders. … If you are thinking of buying or selling Schnitzer Steel Industries stock, you should check out this FREE detailed report on its balance sheet.

Simply Wall St -

What Makes Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) A Great Dividend Stock?

With Schnitzer Steel Industries yielding 3.2% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. … Schnitzer Steel Industries has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Schnitzer Steel Industries has grown its earnings per share at 69% per annum over the past five years.

Simply Wall St -

There's A Lot To Like About Schnitzer Steel Industries, Inc.'s (NASDAQ:SCHN) Upcoming 0.8% Dividend

View our latest analysis for Schnitzer Steel Industries If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. … Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend. … We love that Schnitzer Steel Industries is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

Schnitzer Steel Industries (NASDAQ:SCHN) Has A Pretty Healthy Balance Sheet

The first step when considering a company's debt levels is to consider its cash and debt together. … NasdaqGS:SCHN Historical Debt, July 31st 2019 How Strong Is Schnitzer Steel Industries's Balance Sheet? … Schnitzer Steel Industries has a market capitalization of US$699.6m, so it could very likely raise cash to ameliorate its balance sheet, if the need arose.

Simply Wall St -

Have Insiders Been Selling Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Schnitzer Steel Industries The Last 12 Months Of Insider Transactions At Schnitzer Steel Industries Over the last year, we can see that the biggest insider sale was by the Senior VP, Richard Peach, for US$493k worth of shares, at about US$27.30 per share. … NasdaqGS:SCHN Recent Insider Trading, July 18th 2019 Schnitzer Steel Industries Insiders Are Selling The Stock The last three months saw significant insider selling at Schnitzer Steel Industries. … Insider Ownership of Schnitzer Steel Industries Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Why Schnitzer Steel Industries, Inc.’s (NASDAQ:SCHN) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Schnitzer Steel Industries: 0.12 = US$107m ÷ (US$1.1b - US$177m) (Based on the trailing twelve months to May 2019.) Therefore, Schnitzer Steel Industries has an ROCE of 12%. … View our latest analysis for Schnitzer Steel Industries Is Schnitzer Steel Industries's ROCE Good? … How Schnitzer Steel Industries's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less.

Simply Wall St -

Should We Be Delighted With Schnitzer Steel Industries, Inc.'s (NASDAQ:SCHN) ROE Of 19%?

Our data shows Schnitzer Steel Industries has a return on equity of 19% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Schnitzer Steel Industries: 19% = US$126m ÷ US$681m (Based on the trailing twelve months to February 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Schnitzer Steel Industries's Debt And Its 19% ROE Although Schnitzer Steel Industries does use debt, its debt to equity ratio of 0.24 is still low.

Simply Wall St -

Read This Before You Buy Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) Because Of Its P/E Ratio

Check out our latest analysis for Schnitzer Steel Industries How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Schnitzer Steel Industries: P/E of 4.8 = $21.98 ÷ $4.58 (Based on the year to February 2019.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On Schnitzer Steel Industries's P/E Ratio Schnitzer Steel Industries trades on a P/E ratio of 4.8, which is below the US market average of 17.5.

Simply Wall St -

Schnitzer Steel Industries (NASDAQ:SCHN) Shareholders Booked A 38% Gain In The Last Three Years

See our latest analysis for Schnitzer Steel Industries In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Schnitzer Steel Industries became profitable within the last three years. … NasdaqGS:SCHN Past and Future Earnings, May 27th 2019 It is of course excellent to see how Schnitzer Steel Industries has grown profits over the years, but the future is more important for shareholders.

Simply Wall St -

Does Market Volatility Impact Schnitzer Steel Industries, Inc.'s (NASDAQ:SCHN) Share Price?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … View our latest analysis for Schnitzer Steel Industries What SCHN's beta value tells investors Given that it has a beta of 1.25, we can surmise that the Schnitzer Steel Industries share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Since Schnitzer Steel Industries tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

SCHN Company Info

Description

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. The company operates in two segments, Auto and Metals Recycling (AMR), and Cascade Steel and Scrap (CSS). The AMR segment acquires, processes, and recycles scrap metals, as well as processes mixed and large pieces of scrap metal into smaller pieces by crushing, torching, shearing, shredding, and sorting. This segment offers ferrous recycled scrap metal, a feedstock used in the production of finished steel products; and nonferrous products, including aluminum, copper, stainless steel, nickel, brass, titanium, lead, high temperature alloys, and joint products. It sells ferrous and nonferrous recycled metal products to steel mills, foundries, refineries, smelters, wholesalers, and recycled metal processors. This segment also procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 51 self-service auto parts stores in the United States and Western Canada, as well as sells auto bodies and component parts, such as engines, transmissions, and alternators to wholesalers. The CSS segment produces various finished steel products using ferrous recycled scrap metal and other raw materials. It provides semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products suppliers. Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon.

Details
Name: Schnitzer Steel Industries, Inc.
SCHN
Exchange: NasdaqGS
Founded: 1906
$326,259,653
27,143,066
Website: http://www.schnitzersteel.com
Address: Schnitzer Steel Industries, Inc.
299 SW Clay Street,
Suite 350,
Portland,
Oregon, 97201,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SCHN Class A Common Stock Nasdaq Global Select US USD 16. Nov 1993
DB SS1A Class A Common Stock Deutsche Boerse AG DE EUR 16. Nov 1993
Number of employees
Current staff
Staff numbers
3,363
Schnitzer Steel Industries employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 01:51
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/01/08
Last earnings reported: 2019/11/30
Last annual earnings reported: 2019/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.