| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.21 | 39 |
| Intrinsic value (DCF) | 9.35 | -67 |
| Graham-Dodd Method | 7.28 | -74 |
| Graham Formula | 0.38 | -99 |
Ryerson Holding Corporation (NYSE: RYI) is a leading industrial metals processor and distributor with a legacy dating back to 1842. Headquartered in Chicago, Illinois, Ryerson operates across the United States, Canada, Mexico, and China, offering a diverse portfolio of carbon steel, stainless steel, alloy steels, aluminum, nickel, and red metals in various forms. The company provides value-added processing services, including cutting, welding, machining, and more, catering to industries such as commercial ground transportation, industrial machinery, HVAC, construction, and oil and gas. As a key player in the metal fabrication sector, Ryerson leverages its extensive distribution network and processing capabilities to serve a broad customer base. Despite cyclical industry challenges, Ryerson maintains a strong market presence with a revenue of $4.6 billion (FY 2023). Its ability to adapt to market demands and provide customized metal solutions positions it as a critical supplier in the industrials sector.
Ryerson Holding Corporation presents a mixed investment profile. The company operates in a cyclical industry, reflected in its negative net income of -$8.6 million (FY 2023) and diluted EPS of -$0.26. However, its $204.9 million operating cash flow suggests operational resilience. With a market cap of ~$670 million and a beta of 1.653, Ryerson is highly sensitive to economic cycles, making it a higher-risk, potentially high-reward play. The company pays a dividend ($0.75 per share), which may appeal to income-focused investors, but its high total debt ($834.1 million) and modest cash position ($27.7 million) warrant caution. Investors should weigh Ryerson’s industry expertise and geographic diversification against macroeconomic risks in metals pricing and industrial demand.
Ryerson Holding Corporation competes in the fragmented metal distribution and processing industry, where scale, service capabilities, and supply chain efficiency are critical. Its competitive advantage lies in its extensive product portfolio, value-added processing services, and long-standing customer relationships. Unlike pure distributors, Ryerson’s in-house processing (e.g., laser cutting, welding) allows it to capture higher-margin opportunities. However, the company faces stiff competition from larger players with greater financial resources and global reach. Its North American focus provides regional strength but limits exposure to faster-growing emerging markets. Ryerson’s ability to manage inventory cycles and metal price volatility is a key differentiator, though its high debt load could constrain flexibility during downturns. The company’s niche in mid-sized customers and tailored solutions helps it compete against both broad-line distributors and smaller regional players.