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Algoma Steel Group Inc (ASTL-T)
TSE:ASTL
14.34
0.04
(0.28%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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Most Anticipated Earnings: IAG-T, BDT-T and more Canadian Companies Reporting Earnings this Week (Nov 04-08)Yields and stocks climb, oil fallsNew York and Toronto rip higherThis summary was created by AI, based on 4 opinions in the last 12 months.
Experts have mixed opinions on ASTL-T. Some view it as a strong performer with potential due to protectionism and its cyclical nature, while others see it as a 'sleeper' stock with low valuation, little growth, and a leveraged balance sheet. Stockchase Research also recommends covering the position at this time in order to remain disciplined, resulting in a net investment gain. Overall, there is a lack of strong consensus among the experts.
$15.830
Unknown
ALC is kind of a 'sleeper' stock, offering not much excitement but a low valuation and decent dividend. There is little growth, though, and 2025 estimated earnings will be below the level of 2021. It also has a fairly levered balance sheet. We have always thought it would make a good privatization candidate, but that is not enough reason to give it a strong endorsement. We would not miss it if sold.
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Our PAST TOP PICK with ASTL has triggered its stop at $10. To remain disciplined, we recommend covering the position at this time. We combined with our past recommendations, this will result in a net investment gain of 12%
EPS of $0.24 missed estimates of $0.3067 and revenues of $732.6M beat expectations of $692.38M. Revenue of $732.6M, increased from $599.2M, and income from operations rose substantially. Its Adjusted EBITDA margin shrunk from 13.8% in the prior year to 11.1% in the recent quarter. Its results were negatively impacted by declines in steel prices due to labor stoppages at auto manufacturers in the US. Management expects a recovery in steel demand and pricing, however. Its balance sheet expanded, and its free cash flow grew. This was an OK quarter, and share prices are largely unchanged. It trades at a decent valuation of 0.4X forward sales and 7.1X forward earnings and pays a dividend of 2.7%. It may hover around these prices until a recovery in steel demand and pricing returns.
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ASTL is one of Canada's largest steel producers. It trades at 6x earnings, under book value and supports a 19% ROE. Previously reported earnings indicated cost over runs and project delays that we feel have been fully discounted into the price. Meanwhile plate mill modernization is moving ahead of schedule. Its dividend is backed by a payout ratio under 20% of cash flow. We recommend a stop-loss at $8.50, looking to achieve $12.50 -- upside potential over 21%. Yield 2.6%
(Analysts’ price target is $12.75)Commodity cycle is key input for steel sector.
If economy is expanding, good time to buy steel companies.
Expecting a hard recession, so would not recommend buying.
Wait to buy when market/economy has fallen more.
Been pressured in recent months. The market is pricing in a recession risk later this year. Wouldn't sell it now. Trades at a discount. Wait and see how things develop.
Our PAST TOP PICK with ASTL has triggered its stop at $9.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 2%, when combined with the previous buy recommendation.
We again reiterate this Canadian based steel producer as a TOP PICK. Trading at under book value and supporting a 66% ROE it remains good value. The company is growing cash reserves while it aggressively retires debt. Its dividend is backed by a payout ratio under 10% of cash flow. We recommend trailing up the stop-loss (from $7.50) to $8.50, looking to achieve $13.25 -- upside potential over 21%. Yield 2.4%.
(Analysts’ price target is $13.21)
Algoma Steel Group Inc(ASTL-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 4
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 5
Algoma Steel Group Inc(ASTL-T) Frequently Asked Questions
What is Algoma Steel Group Inc stock symbol?
Algoma Steel Group Inc is a Canadian stock, trading under the symbol ASTL-T on the Toronto Stock Exchange (ASTL-CT). It is usually referred to as TSX:ASTL or ASTL-T
Is Algoma Steel Group Inc a buy or a sell?
In the last year, 5 stock analysts published opinions about ASTL-T. 4 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Algoma Steel Group Inc.
Is Algoma Steel Group Inc a good investment or a top pick?
Algoma Steel Group Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Algoma Steel Group Inc.
Why is Algoma Steel Group Inc stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Algoma Steel Group Inc worth watching?
5 stock analysts on Stockchase covered Algoma Steel Group Inc In the last year. It is a trending stock that is worth watching.
What is Algoma Steel Group Inc stock price?
On 2024-12-11, Algoma Steel Group Inc (ASTL-T) stock closed at a price of $14.34.
XME was among the strongest performers this morning, up almost 7%. Some view that protectionism would be good for the NA steel producer. Cyclical, fits the inflation theme. Hasn't done a lot of work on this one, but technical setup is good.