SCHN Intrinsic Value Calculation – Schnitzer Steel Industries’ Estimated Intrinsic Value Reaches US$27.86 in 2023.
March 18, 2023
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Schnitzer Steel Industries ($NASDAQ:SCHN), Inc. is an American metals recycling and steel manufacturing company with estimated intrinsic value of US$27.86 in 2023, according to a two-stage Free Cash Flow to Equity model. This figure is a result of a comprehensive analysis of Schnitzer’s balance sheet and income statement, along with various other financial indicators such as market conditions, macroeconomic factors, and company-specific business risk factors.
In addition, this model takes into account the potential for growth in both the short-term and long-term, as well as any exogenous or other risks that may arise in the future. The estimated intrinsic value of Schnitzer reflects a number of factors, including the company’s strong cash flow position and established leadership in the steel manufacturing and recycling industry. It also considers the potential for continued growth in the steel industry due to increasing demand for steel products, and the potential for cost savings through efficiency initiatives such as automation and process improvement.
Additionally, the model takes into account Schnitzer’s ability to innovate and acquire new technologies, as well as its long history of providing reliable and cost-effective steel products to its customers. Overall, Schnitzer Steel Industries’ estimated intrinsic value of US$27.86 in 2023 demonstrates that the company is well positioned to capitalize on the increasing demand for steel products over the ensuing years. With its strong cash flow position, established leadership in its industry, potential for growth and innovation, and reliable cost-effective steel products, Schnitzer is well-positioned to generate significant returns for shareholders over the long-term.
Market Price
Schnitzer Steel Industries (SCHNITZER) has recently seen a surge in news coverage, with most of it being positive. On Friday, the stock opened at $29.2 and closed at $28.5, a decrease of 2.1% from the last closing price of $29.2. Industry analysts have estimated that the company’s intrinsic value could reach US$27.86 in 2023.
This could potentially bring a much-needed boost to the stock price for SCHNITZER. Investors are watching closely to see how this estimation pans out, as it could be a key indicator of the company’s short-term performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SCHN. More…
| Total Revenues | Net Income | Net Margin |
| 3.29k | 104.81 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SCHN. More…
| Operations | Investing | Financing |
| 209.79 | -245.33 | 20.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SCHN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.82k | 894.12 | 33.79 |
Key Ratios Snapshot
Some of the financial key ratios for SCHN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.5% | 40.1% | 4.4% |
| FCF Margin | ROE | ROA |
| 1.6% | 9.7% | 5.0% |
Analysis – SCHN Intrinsic Value Calculation
At GoodWhale, we have completed a comprehensive analysis of SCHNITZER STEEL INDUSTRIES’s fundamentals. After careful consideration, our proprietary Valuation Line indicates that the intrinsic value of SCHNITZER STEEL INDUSTRIES’s share is around $43.3. However, the stock is currently being traded at $28.5, meaning it is undervalued by 34.1%. This provides a unique opportunity for investors to purchase SCHNITZER STEEL INDUSTRIES stock at a discounted rate. More…
Peers
Schnitzer Steel Industries Inc is one of the largest steel producers in the world. Its competitors include Daido Steel Co Ltd, FENG HSIN STEEL CO LTD, and Bengang Steel Plates Co Ltd.
– Daido Steel Co Ltd ($TSE:5471)
Daido Steel Co Ltd is a Japanese steel manufacturer with a market cap of 154.52B as of 2022. The company has a Return on Equity of 7.71%. Daido Steel Co Ltd produces a wide range of steel products, including stainless steel, carbon steel, and alloy steel. The company also manufactures and sells steel products for use in construction, shipbuilding, automotive, and other industries.
– FENG HSIN STEEL CO LTD ($TWSE:2015)
FENG HSIN STEEL CO LTD is a steel manufacturer based in Taiwan. The company has a market capitalization of 34.08 billion as of 2022 and a return on equity of 15.9%. Feng Hsin Steel Co Ltd produces a variety of steel products including hot rolled coils, cold rolled coils, and hot dip galvanized coils. The company also produces steel pipes and tubes, wire rods, and other steel products. Feng Hsin Steel Co Ltd has a production capacity of 2.8 million tons of steel products per year.
– Bengang Steel Plates Co Ltd ($SZSE:000761)
Bengang Steel Plates Co Ltd is a leading steel producer in China with a market cap of 12.33B as of 2022. The company has a Return on Equity of 5.86%. Bengang Steel Plates Co Ltd produces a variety of steel products including plates, coils, sheets, and pipes. The company is vertically integrated and has a diversified customer base.
Summary
Schnitzer Steel Industries is an attractive investment opportunity for investors, as evidenced by its estimated intrinsic value of $27.86 in 2023. Analysts are providing a mostly positive outlook for the company, and the stock has been performing well in the market. Investors may find that the company offers stability and a strong financial position, along with a diversified portfolio, including metals recycling and auto parts manufacturing.
The company also produces steel and other metal products, allowing potential investors to benefit from the strong demand in these sectors. With competitive pricing and good customer service, Schnitzer Steel Industries looks set to remain a key player in the industry.
