That basic sector includes thirteen industries all related to mining, making and delivering essential commodities. The industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals and minerals; paper; silver; specialty chemicals; steel.

Today I'm reviewing a small-cap steel company.

The company's name is Schnitzer Steel Industries, Inc. It's trading ticker symbol is SCHN.  

Schnitzer Steel Industries, Inc. is a ferrous and non-ferrous scrap metal recycler and manufacturer of finished steel products in the US. Its metal recycling business collects and recycles auto bodies, rail cars, appliances, machinery etc.

The company procures salvaged vehicles and sells serviceable used auto parts from these vehicles through its 53 self-service auto parts stores in the United States and Western Canada, as well as sells auto bodies and parts containing ferrous and nonferrous materials, such as engines, transmissions, and alternators to wholesalers.

It also produces various finished steel products using recycled metal and other raw materials. It offers semi-finished goods, which include billets; and finished goods consisting of rebar, coiled rebar, wire rods, merchant bars, and other specialty products. This segment serves steel service centers, construction industry subcontractors, steel fabricators, wire drawers, and farm and wood products, suppliers.

Schnitzer Steel Industries, Inc. was founded in 1906 and is headquartered in Portland, Oregon.

I use three key data points gauge the value of any dividend equity or fund like Schnitzer Steel Industries, Inc.: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

SCHN Price

Schnitzer's price was $31.60 per share at yesterday's market close.  A year ago its price was $19.60 for a gain of $12 per share in the past year.  

Assuming Schnitzer's price will continue to trade in the range of $20.00 to $45.00 next year, its price could grow another $12 from $31.60 to $43.60 by June 5, 2019. 

SCHN Dividends

Schnitzer's most recently declared quarterly dividend was $0.1875 per share paid in May.  That $0.1875 quarterly dividend equates to an estimated annual payout of $0.75 for 2018 which yields 2.37% at yesterday's $31.60 closing stock price.  

Gains For SCHN?

The $12 estimated year over year price gain plus an anticipated dividend of  $0.75 makes a projected gross annual gain of $12.75 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $31.60 price buys 32 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.31 per share.

Taking that $0.31 brokerage cost out of the estimated $12.75 gross gain per share leaves a net gain of $12.44 X 32 shares 

= $398.08

or a 39% potential net gain on a $1,011.20 investment.

Therefore, Schnitzer Steel Industries, Inc. (whose ticker symbol is SCHN), now shows a possible 39% net gain including a 2.3% dividend yield. 

Five analysts cover this stock:

One says Orion will "outperform."

Three say "hold" the stock.

One says Orion will "underperform."

The median analyst recommendation is 3.0 or "Hold" and their median price target is  $10 below the estimated year over year number I just calculated.

Y Charts rates SCHN "avoid" for an overall "Y" rating. Y Charts also shows Good" for a Value score of 9 out of ten points. And YCharts ranks OEC "weak" with 4 out of 10  possible Fundamental points. Y Charts Historic Valuation score is 25.48% overvalued, based on a $25.18 historic value multiple.

You could look at all those numbers like this: Schnitzer Steel Industries, Inc. has made money, is making money, and could net a 9.5% to 39.5 % net gain next year including a 2.37% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen.  They could turn out to be far higher or lower. More study is required for you to determine if Schnitzer Steel Industries, Inc. is worth your time and money.