Algoma Steel Group, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Richelieu Hardware Ltd.

Omni-Lite Industries Canada, Inc.

Tree Island Steel Ltd.

Neo Performance Materials, Inc.

Algoma Steel Group, Inc.

South Star Battery Metals Corp.

Why is Algoma Steel Group, Inc. ?

The company has declared negative results for the last 10 consecutive quarters

PRE-TAX PROFIT(Q) At CAD -136.5 MM has Fallen at -75.39%
RAW MATERIAL COST(Y) Grown by 758.71% (YoY)
NET PROFIT(Q) Lowest at CAD -99.6 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -59.30%, its profits have fallen by -270.1%

Below par performance in long term as well as near term

Along with generating -59.30% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Algoma Steel Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Algoma Steel Group, Inc.

10.61%

-0.88

53.27%

S&P/TSX 60

28.84%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

99.88%

EBIT Growth (5y)

-383.27%

EBIT to Interest (avg)

9.25

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

1.38

Tax Ratio

27.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

98.49%

ROCE (avg)

53.38%

ROE (avg)

20.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.09

EV to EBIT

-1.77

EV to EBITDA

-3.27

EV to Capital Employed

1.03

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

-58.47%

ROE (Latest)

-106.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.36 times

-25What is not working for the Company

NET PROFIT(HY)

At CAD -484.4 MM has Grown at -203.7%

ROCE(HY)

Lowest at -122.45%

DEBT-EQUITY RATIO (HY)

Highest at 219.4 %

RAW MATERIAL COST(Y)

Grown by 97.42% (YoY

DIVIDEND PER SHARE(HY)

Lowest at CAD 5.06

NET SALES(Q)

Lowest at CAD 296.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -40.45 %

Here's what is working for Algoma Steel Group, Inc.

Inventory Turnover Ratio

Highest at 4.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Algoma Steel Group, Inc.

Net Profit

At CAD -484.4 MM has Grown at -203.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

At CAD 296.9 MM has Fallen at -43.06%

over average net sales of the previous four periods of CAD 521.43 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Debt-Equity Ratio

Highest at 219.4 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CAD 296.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit Margin

Lowest at -40.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend per share

Lowest at CAD 5.06

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Raw Material Cost

Grown by 97.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales