Investors Wonder: What Role Do Financials Play in Driving Schnitzer Steel Industries’ Stock Up 10%?
June 19, 2023
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Schnitzer Steel Industries ($NASDAQ:SCHN), Inc. is a global leader in the metals recycling and steel manufacturing industries. The company has seen a 10% increase in its stock in the past week, leaving investors to wonder what role its financials have had in driving this increase. The company’s stock has been steadily climbing for the past few months, mostly due to strong performance from its metals recycling and steel manufacturing divisions. The company has posted impressive quarterly results, showing consistent growth in revenue, profits, and operating margins. This has been a significant contributor to the rise in Schnitzer Steel Industries’ stock.
In addition, the company’s recent investments have added to its revenue potential. Schnitzer Steel Industries recently announced a joint venture with China’s Baosteel Group, which is expected to bring significant growth opportunities to the company. This joint venture further bolsters the company’s potential for future growth, which has been reflected in its stock price. Overall, the financials of Schnitzer Steel Industries, Inc. have played a key role in driving its stock up 10% in the past week. The company’s strong financial performance and strategic investments have made it an attractive investment option for investors, resulting in an increase in its stock price.
Analysis
GoodWhale is here to analyze SCHNITZER STEEL INDUSTRIES’s fundamentals. According to our Star Chart, SCHNITZER STEEL INDUSTRIES is strong in dividend and medium in asset, growth, and profitability. Additionally, SCHNITZER STEEL INDUSTRIES has been classified as a ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Given these characteristics, what type of investors may be interested in such a company? Well, SCHNITZER STEEL INDUSTRIES has a high health score of 9/10 considering its cashflows and debt, meaning it is capable to safely ride out any crisis without the risk of bankruptcy. This makes it an attractive investment option for investors who are looking for a stable, long-term investment with good returns. Additionally, given its strength in dividend, it may also be attractive to investors who are looking for a steady passive income stream. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SCHN. More…
| Total Revenues | Net Income | Net Margin |
| 3.26k | 71.55 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SCHN. More…
| Operations | Investing | Financing |
| 209.79 | -316.15 | 94.57 |
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 |
| 1.78k | 852.66 | 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 |
| 18.9% | 31.1% | 3.1% |
| FCF Margin | ROE | ROA |
| 1.6% | 6.9% | 3.6% |
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, Inc. is a provider of recycled metals and products, and is currently seeing a 10% increase in stock over the past week. Investors interested in SCHNITZER should analyze the company’s financials to understand the drivers of the stock’s recent success. This includes looking at fundamental metrics such as earnings per share, return on equity, revenue growth and dividend yield to evaluate the company’s financial health.
Additionally, assessing the balance sheet to understand the company’s debt and cash position can be helpful for making an informed investment decision. Analyzing Schnitzer Steel Industries’ financials will allow investors to understand the company’s performance and make an informed investment decision.
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