Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, metal recycler Schnitzer Steel Industries (NASDAQ:SCHN) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Schnitzer's business, and see what CAPS investors are saying about the stock right now.

Schnitzer facts

Headquarters (founded)

Portland, Ore. (1946)

Market Cap

$1.44 billion



Business Segments

Metals recycling, auto parts, steel manufacturing

TTM Revenue

$3.22 billion


CEO Tamara Lundgren (since 2008)
CFO Richard Peach (since 2007)

Return on Equity (average, last three years)



Nucor (NYSE:NUE)
Commercial Metals

CAPS members bullish on SCHN also bullish on

Freeport-McMoRan (NYSE:FCX)
PotashCorp (NYSE:POT)

CAPS members bearish on SCHN also bearish on

Citigroup (NYSE:C)
JPMorgan Chase (NYSE:JPM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 389 of the 410 members who have rated Schnitzer -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include SpartanMAC and All-Star devoish, who is ranked in the top 0.5% of our community.

Late last year, SpartanMAC brought the stock's solid fundamentals to our community's attention:

Strong book value growth over the past 10 years, and strong EPS / Revenue growth over the past 3 years. Current ratio is very good, and debt is manageable. ROE / ROI is very good, and it is selling at a bargain price.

In a pitch from two weeks ago, devoish expands on Schnitzer as a scrappy selection:

Used auto parts business set to outperform. As car companies cut back on leasing/loan options for customers, all those people who really could not afford a car without fanciful lease return valuations lowering the lease rate will now have to buy used or fix their car. Cheapest way to fix it is with used parts. Any commodities slow down should hurt recycled metal sources the least.

Debt is higher than I like but it seems to be spent well. Rising receivables is either a concern or a sign of booming business. I am going with booming business because of acquisitions and a similar increase in revenue. Recent price drop gets it back into opportunity range.

What do you think about Schnitzer, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.