TSE:ASTL
Algoma Steel Group Inc (ASTL-T)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 3 opinions in the last 12 months.
Algoma Steel Group Inc (ASTL) has seen mixed reviews from various experts. One analyst highlights its strong performance recently, attributing it to protective measures favoring North American steel producers, suggesting the stock has a favorable technical setup, albeit with limited past exploration. In contrast, another expert offers a less enthusiastic view, describing ASTL as potentially undervalued but lacking excitement and growth prospects, cautioning about its heavily leveraged balance sheet. A recent top pick recommendation indicated disciplined action with a stop trigger, advising to cover the position, implying cautiousness about future gains after a modest investment gain. Overall, while some analysts see promise in its cyclical nature and current valuation, others express reservations regarding its financial stability and growth potential.
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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Premium contentOur 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%
Premium contentPremium contentEPS 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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Premium contentASTL 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)Premium contentOur 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.
Premium contentPremium contentWe 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)Premium contentPremium content
Algoma Steel Group Inc(ASTL-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 1
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 2
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, 2 stock analysts published opinions about ASTL-T. 1 analyst 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?
2 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 2025-06-30, Algoma Steel Group Inc (ASTL-T) stock closed at a price of $9.41.
Go back to the 2017 timeframe and look at the last time he did this with steel and aluminum. Cheap for a reason. Need a high tolerance for risk and volatility to put a position on right now. These names are down, compared to US names that are up (today in particular).
There's an opportunity there, but don't rush in today. Get closer to where there's some sort of resolution.