|Bid||28.04 x 300|
|Ask||33.89 x 300|
|Day's Range||33.62 - 34.51|
|52 Week Range||22.79 - 40.17|
|PE Ratio (TTM)||15.92|
|Earnings Date||Jul 17, 2017 - Jul 21, 2017|
|Dividend & Yield||0.62 (1.80%)|
|1y Target Est||43.54|
U.S. steel equities have underperformed the market significantly since peaking in February, with our steel index down 23% compared to a 2% increase in the S&P 500. U.S. steel equities are now trading at the lowest enterprise value (EV)/earnings before interest, taxes, depreciation and amortization (Ebitda) multiple in the past several years at 5.9 times (one-year forward) and in our view reflect a major shift from a highly inflationary outlook at the start of 2017 to a deflationary set up for the rest of 2017. While the market is also concerned on automotive, we believe the recovery in energy/construction as well as trade support structurally changing the fair value arbitrage into the U.S. as key positives.
ArcelorMittal’s net debt rose in 1Q17 due to higher working capital investment. The company’s net debt-to-EBITDA is 1.8x as of March 31, 2017.
U.S. Steel Corporation (X) posted negative free cash flows of $182 million in 1Q17. The company attributed negative cash flows to higher working capital.