Schnitzer Steel Industries Stock Beneish M Score

RDUS Stock  USD 19.71  0.27  1.39%   
This module uses fundamental data of Schnitzer Steel to approximate the value of its Beneish M Score. Schnitzer Steel M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Schnitzer Steel Piotroski F Score and Schnitzer Steel Altman Z Score analysis.
  
At this time, Schnitzer Steel's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 429.7 M in 2024, whereas Short and Long Term Debt is likely to drop slightly above 3.6 M in 2024. At this time, Schnitzer Steel's Average Payables is comparatively stable compared to the past year. Inventory Turnover is likely to gain to 4.80 in 2024, whereas Dividend Yield is likely to drop 0.02 in 2024.
At this time, Schnitzer Steel's M Score is unavailable. The earnings manipulation may begin if Schnitzer Steel's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Schnitzer Steel executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Schnitzer Steel's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.52
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.57

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Schnitzer Steel Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Schnitzer Steel's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables271.1 M258.2 M
Sufficiently Up
Slightly volatile
Total Revenue3.5 B3.3 B
Sufficiently Up
Slightly volatile
Total Assets1.6 B1.5 B
Sufficiently Up
Slightly volatile
Total Current Assets639.6 M609.1 M
Sufficiently Up
Slightly volatile
Non Current Assets Total514.2 M924.6 M
Way Down
Slightly volatile
Property Plant Equipment949.7 M904.5 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization108.4 M103.2 M
Sufficiently Up
Slightly volatile
Selling General Administrative321.1 M305.8 M
Sufficiently Up
Slightly volatile
Total Current Liabilities332.4 M316.6 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total621 M591.5 M
Sufficiently Up
Slightly volatile
Short Term Debt31 M29.5 M
Sufficiently Up
Slightly volatile
Long Term Debt429.5 M409.1 M
Sufficiently Up
Pretty Stable
Long Term Investments10.4 M9.8 M
Notably Up
Slightly volatile
Gross Profit Margin0.520.9072
Way Down
Slightly volatile

Schnitzer Steel Indu Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Schnitzer Steel's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Schnitzer Steel in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Schnitzer Steel's degree of accounting gimmicks and manipulations.

About Schnitzer Steel Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

108.39 Million

At this time, Schnitzer Steel's Depreciation And Amortization is comparatively stable compared to the past year.

Schnitzer Steel Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Schnitzer Steel. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables139.1M214.1M237.7M210.4M258.2M271.1M
Total Revenue1.7B2.8B3.5B2.9B3.3B3.5B
Total Assets1.2B1.5B1.8B1.7B1.5B1.6B
Total Current Assets362.6M543.1M671.4M550.3M609.1M639.6M
Net Debt211.5M181.7M328.1M359.3M409.2M429.7M
Short Term Debt2.2M25.1M27.7M25.6M29.5M31.0M
Long Term Debt102.2M71.3M242.5M243.6M409.1M429.5M
Operating Income6.9M213.7M225.9M(3.9M)(3.5M)(3.4M)
Investments(78.9M)(117.6M)(5M)(144.0M)(78.6M)(82.6M)
Gross Profit Margin0.920.910.160.140.110.52

Schnitzer Steel ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Schnitzer Steel's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Schnitzer Steel's managers, analysts, and investors.
Environmental
Governance
Social

About Schnitzer Steel Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Schnitzer Steel Industries's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Schnitzer Steel using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Schnitzer Steel Industries based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Additional Tools for Schnitzer Stock Analysis

When running Schnitzer Steel's price analysis, check to measure Schnitzer Steel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Schnitzer Steel is operating at the current time. Most of Schnitzer Steel's value examination focuses on studying past and present price action to predict the probability of Schnitzer Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Schnitzer Steel's price. Additionally, you may evaluate how the addition of Schnitzer Steel to your portfolios can decrease your overall portfolio volatility.