Investment Thesis
Ryerson is in financial distress with critically low profitability (0.3% net margin), inability to cover interest expenses (0.9x coverage), and severe negative operating cash flows (-$179.2M). The company is burning cash faster than it can generate it, threatening solvency.
Strengths
- Current ratio of 2.21x provides short-term liquidity cushion
- Gross margin of 18.4% indicates underlying product demand exists
- Moderate leverage ratio of 0.41x debt-to-equity
Risks
- Interest coverage ratio of 0.9x means inability to service debt from operations
- Operating cash flow severely negative at -$179.2M annually - unsustainable burn rate
- Net margin of 0.3% with flat YoY revenue growth (0.0%) indicates fundamental business stress
- Minimal cash reserves ($25.1M) relative to debt obligations ($526.6M) and annual cash burn
- EPS collapsed 576.9% YoY signaling severe earnings deterioration
Key Metrics to Watch
- Operating cash flow trend and path to positive
- Interest coverage ratio recovery above 1.5x threshold
- Revenue growth acceleration and margin expansion
- Cash balance and debt refinancing requirements
- Gross margin stability amid market conditions
Financial Metrics
Revenue
1.6B
Net Income
4.5M
EPS (Diluted)
$0.10
Free Cash Flow
-191.4M
Total Assets
3.7B
Cash
25.1M
Profitability Ratios
Gross Margin
18.4%
Operating Margin
1.5%
Net Margin
0.3%
ROE
0.4%
ROA
0.1%
FCF Margin
-12.2%
Balance Sheet & Liquidity
Current Ratio
2.21x
Quick Ratio
1.03x
Debt/Equity
0.41x
Debt/Assets
65.3%
Interest Coverage
0.92x
Long-term Debt
526.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T12:16:13.859232 |
Data as of: 2026-03-31 |
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