Comprehensive GF Score Analysis of Companhia Siderurgica Nacional (SID)
Companhia Siderurgica Nacional (NYSE:SID) is a prominent player in the steel industry. As of July 24, 2023, the company's stock price stands at $2.81, with a market cap of $3.72 billion. The stock has seen a gain of 3.89% today and a 2.39% increase over the past four weeks. In this article, we will delve into the company's GF Score of 91/100, which indicates the highest outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which has been found to be closely correlated with the long-term performances of stocks.
Financial Strength Analysis
The Financial Strength of SID is ranked at 4/10. This rank measures the robustness of a company's financial situation. SID's interest coverage is 1.68, indicating its ability to cover interest expenses with its earnings. The company's debt to revenue ratio is 0.98, suggesting a moderate level of debt burden. The Altman Z score is 1.00, which is a measure of financial distress risk.
Profitability Rank Analysis
SID's Profitability Rank is 8/10, indicating a high level of profitability. The company's Operating Margin is 14.95%, and its Piotroski F-Score is 3, suggesting a stable financial situation. The trend of the Operating Margin over the past five years is 9.70%, indicating an uptrend in profitability. The company has shown consistent profitability over the past seven years.
Growth Rank Analysis
The Growth Rank of SID is 10/10, indicating a strong growth profile. The company's 5-year and 3-year revenue growth rates are 21.60% and 22.00% respectively, suggesting robust revenue growth. The 5-year EBITDA growth rate is 25.10%, indicating a strong growth in the company's business operations.
GF Value Rank Analysis
SID's GF Value Rank is 8/10, suggesting that the stock is fairly valued. The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
The Momentum Rank of SID is 8/10, indicating strong price momentum. The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors in the steel industry, SID's GF Score of 91 outperforms Metalurgica Gerdau SA's score of 89 and Usinas Siderurgicas de Minas Gerais SA's score of 84, but falls short of CSN Mineracao SA's score of 41.
Conclusion
In conclusion, Companhia Siderurgica Nacional (NYSE:SID) exhibits strong profitability and growth, with a GF Score of 91/100 indicating the highest outperformance potential. However, its financial strength could be improved. Based on its GF Score, SID is expected to perform well in the future.
This article first appeared on GuruFocus.
