Schnitzer Reports Middling 2Q Results; Trimming Our FVE to $19 On Modestly Lower Near-Term Profits
Although Schnitzer Steel Industries' second-quarter recycling profits were steady, we've trimmed our near-term profit outlook for the company's steelmaking operations. Having updated our valuation model, we are lowering our fair value estimate to $19 per share from $20. Our no-moat rating is intact.Our adjusted EBITDA forecast falls to $140 million from $145 million in fiscal 2019 and to $123 million from $130 million in 2020. Although metal margins remain elevated versus historical levels, Sch...
Schnitzer Steel Industries is engaged as a recycler of ferrous and nonferrous scrap metal, including end-of-life vehicles, and a manufacturer of finished steel products. The company has two segments: Auto and Metals Recycling, which acquires and recycles ferrous and nonferrous scrap metal for sale to foreign and domestic metal producers, processors and brokers, and procures salvaged vehicles and sells serviceable used auto parts from these vehicles through a network of self-service auto parts stores; and Cascade Steel and Scrap, which produces a range of finished steel long products using ferrous recycled scrap metal and other raw materials.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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