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.

Neo Performance Materials, Inc.

Omni-Lite Industries Canada, Inc.

Algoma Steel Group, Inc.

Tree Island Steel Ltd.

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.

-26.38%

-0.88

53.27%

S&P/TSX 60

26.52%

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

100.00%

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

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

5What is working for the Company

NET PROFIT(Q)

Highest at CAD -8 MM

-16What is not working for the Company

NET PROFIT(HY)

At CAD -107.6 MM has Grown at -35.86%

ROCE(HY)

Lowest at -60.02%

DEBT-EQUITY RATIO (HY)

Highest at 84.57 %

PRE-TAX PROFIT(Q)

Lowest at CAD -153.7 MM

RAW MATERIAL COST(Y)

Grown by 163.84% (YoY

EPS(Q)

Lowest at CAD -4.46

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

Net Profit

Highest at CAD -8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD -8 MM has Grown at 90.02%

over average net sales of the previous four periods of CAD -80.13 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Depreciation

Highest at CAD 43.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Pre-Tax Profit

Lowest at CAD -153.7 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -153.7 MM has Fallen at -44.42%

over average net sales of the previous four periods of CAD -106.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Highest at 84.57 % 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

EPS

Lowest at CAD -4.46

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 163.84% (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