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Should You Consider Schnitzer Steel Industries, Inc. (NASDAQ:SCHN)?

Simply Wall St

Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SCHN, it is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Schnitzer Steel Industries here.

Flawless balance sheet established dividend payer

SCHN's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that SCHN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SCHN seems to have put its debt to good use, generating operating cash levels of 1.25x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:SCHN Historical Debt, September 13th 2019

SCHN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NasdaqGS:SCHN Historical Dividend Yield, September 13th 2019

Next Steps:

For Schnitzer Steel Industries, I've put together three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SCHN’s future growth? Take a look at our free research report of analyst consensus for SCHN’s outlook.
  2. Historical Performance: What has SCHN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCHN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.