Schnitzer Steel Industries, Inc. - (SCHN) Company Bio
Schnitzer Steel recycles used and salvaged vehicles and is a manufacturer of finished steel products. The Company operates in three business segments: the Metals Recycling Business, the Auto Parts Business , and the Steel Manufacturing Business. The company was founded in 1906 and is based in Portland, Oregon.
SCHN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SCHN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Schnitzer Steel Industries Inc ranked in the 71th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 282.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SCHN, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 6.68 -- which is good for besting 61.14% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
Schnitzer Steel Industries Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 9.43% of tickers in our DCF set.
Schnitzer Steel Industries Inc's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 70.09% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SCHN, try NEM, RIO, KL, UFPI, and KOP.