AKS - AK Steel Holding Corporation

NYSE - NYSE Delayed Price. Currency in USD
2.8000
-0.0200 (-0.71%)
At close: 4:02PM EDT
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Previous Close2.8200
Open2.8600
Bid2.8000 x 34100
Ask2.8100 x 29200
Day's Range2.7500 - 2.9000
52 Week Range1.6600 - 5.1100
Volume11,626,676
Avg. Volume8,937,836
Market Cap885.878M
Beta (3Y Monthly)2.94
PE Ratio (TTM)5.43
EPS (TTM)0.5160
Earnings DateOct 23, 2019 - Oct 28, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2012-05-11
1y Target Est2.01
Trade prices are not sourced from all markets
  • US Steel Stocks: Decoding the Good and Bad News
    Market Realist

    US Steel Stocks: Decoding the Good and Bad News

    US steel stocks are flying high this month. U.S. Steel Corporation (X) has gained 19.5% so far, while AK Steel (AKS) is up 31.0%.

  • Wait for a Recession to Hit Before Buying U.S. Steel Stock
    InvestorPlace

    Wait for a Recession to Hit Before Buying U.S. Steel Stock

    U.S. Steel (NYSE:X) stock has gotten hammered in the past year. X stock is down 58% over the past 52 weeks. Since January, shares have slid from around $18 a share down to about $12.23 a share at the close Sept. 9.U.S. Steel rebounded from all-time lows during the Great Recession, but despite a bull market since the early 2010s, the X stock price has failed to return to its all-time highs (well over $100 a share) in the late 2000s. * 10 Stocks to Sell in Market-Cursed September The economic upturn brought U.S. Steel back to profitability, but investors are wary of the company's future. As a result, shares trade at a low valuation.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIs X stock a value play? Or is the company your classic value trap? Let's take a closer look at U.S. Steel stock and see if shares are an opportunity. A Closer Look at X StockOver the past few years, U.S. Steel stock has returned to profitability. A booming economy drove revenue up from $10.3 billion in 2016 to $14.2 billion in 2018. As a result, the X stock price was as high as $38.89 per share in July 2018.But steel prices have been in decline since May 2018. A decrease in demand has been matched with a rise in iron ore prices. U.S. Steel's financial performance reflects this decreased demand. Net earnings for the quarter ending June 30, 2019 were $68 million. This is down from $214 million in the prior year's quarter. Adjusted quarterly EBITDA has fallen from $451 million in Q2 2018 to $278 million in Q2 2019.This performance decline could just be the beginning. The U.S.-China trade war adds additional risks to the X stock price. One would think that a 25% tariff on steel imports would buoy the domestic steel industry, but it has had the opposite effect. In response to the tariffs, the domestic steel industry ramped up production. Falling demand made profitability tougher, though producers such as Nucor (NYSE:NUE) can handle the pricing pressures. While Nucor operates lower-cost electric-arc furnaces (EAFs), legacy steel producers such as U.S. Steel struggle as their blast furnaces are expensive to operate.But the company has a plan in motion. U.S. Steel's Asset Revitalization Plan (ARP) will reduce the company's cost structure. The company invested $1.6 billion into three modernization projects. These projects could improve EBITDA by $390 million a year once complete.Is this enough to counter weak macroeconomic trends and domestic competition? Are investors currently compensated for these risks? Let's take a look at the valuation of U.S. Steel stock. U.S. Steel Stock Sells at a Fire Sale PriceCompared to its domestic peers, U.S. Steel stock is undervalued. The company's forward price/earnings (forward P/E) ratio of 21.5 is not lower than its peers AK Steel (NYSE:AKS) and Nucor. But on an enterprise value/EBITDA (EV/EBITDA) and a price/tangible book basis, shares are a bargain. U.S. Steel stock trades at an EV/EBITDA ratio of 3.24. Its Price/Tangible book value is 0.5. This means investors can buy the company for half the value of its assets. Here are the valuation metrics for AK Steel and Nucor:AK Steel: Forward P/E of 12.3, EV/EBITDA of 4.9, Price/Tangible Book of 6.05Nucor: Forward P/E of 11.3, EV/EBITDA of 4.8, Price/Tangible Book of 1.53The discount AKS and NUE could be justified. U.S. Steel's legacy mills are more capital-intensive than Nucor's mini-mills. But AK Steel is a legacy steel producer. This could mean the X stock price is undervalued. It could also indicate that AKS is overvalued and that the market is right on the money with U.S. Steel stock valuation.The price/tangible book value of X stock could also be misleading. It is not as if U.S. Steel could liquidate its steel mills and distribute the proceeds to shareholders. It could indicate that X stock is well-capitalized enough to survive a recession.As indicated in the Aug. 1 earnings call slides (referenced above), U.S. Steel's next significant debt maturity is not until 2025. X stock likely has the flexibility to ride out the upcoming recession. In the meantime, they can continue to modernize operations. This would bring the company's cost-structure closer to that of peers such as Nucor. Too Early to Dive in on X StockU.S. Steel stock is undervalued, but it may be too early to dive in and take a position. An anticipated recession has yet to make impact. Once it hits, there are likely further declines in the X stock price. But long-term, U.S. Steel may not be the dinosaur investor perception implies. They have the flexibility to further modernize their operations.However, the domestic steel industry remains a tough place to invest. Commodity prices, trade policy, and economic cycles dominate the sector's destiny. With U.S. Steel stock, it truly is a case of "it's darkest before dawn."While the sun has definitely set on the stock, the clock hasn't even struck midnight yet. Take your time with X stock. There may be a strong buying opportunity around the corner.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Wait for a Recession to Hit Before Buying U.S. Steel Stock appeared first on InvestorPlace.

  • Should Value Investors Buy AK Steel (AKS) Stock?
    Zacks

    Should Value Investors Buy AK Steel (AKS) Stock?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • AK Steel (AKS) Moves to Buy: Rationale Behind the Upgrade
    Zacks

    AK Steel (AKS) Moves to Buy: Rationale Behind the Upgrade

    AK Steel (AKS) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

  • Trade War Eases, Bringing Respite to US Steel Stocks
    Market Realist

    Trade War Eases, Bringing Respite to US Steel Stocks

    US steel stocks have been strong in September amid the trade war de-escalation. U.S. Steel and AK Steel are up 4.8% and 6.0%, respectively, this month.

  • We Think AK Steel Holding (NYSE:AKS) Is Taking Some Risk With Its Debt
    Simply Wall St.

    We Think AK Steel Holding (NYSE:AKS) Is Taking Some Risk With Its Debt

    Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

  • AK Steel laying off 260 employees in plant closure
    American City Business Journals

    AK Steel laying off 260 employees in plant closure

    AK Steel is closing a plant that has sat mostly idle for the better part of three years, a move that will impact 260 of the company's employees.

  • AK Steel eliminating 260 jobs in plant closure
    American City Business Journals

    AK Steel eliminating 260 jobs in plant closure

    AK Steel Holding Corp., one of the largest companies in the Dayton region, is eliminating 260 jobs in a neighboring state.

  • Should Value Investors Pick AK Steel Holding (AKS) Stock?
    Zacks

    Should Value Investors Pick AK Steel Holding (AKS) Stock?

    Is AK Steel Holding (AKS) a great pick from the value investor's perspective right now? Read on to know more.

  • Analyst Endorses ArcelorMittal: What You Need to Know
    Motley Fool

    Analyst Endorses ArcelorMittal: What You Need to Know

    What's good news for ArcelorMittal could be good news for Nucor and U.S. Steel.

  • Steel Stocks Meltdown
    Investopedia

    Steel Stocks Meltdown

    U.S. steel stocks are slumping amid weak global demand and excess supply, and the situation could get worse.

  • U.S. Steel Imports Shoot Up in July, Down YTD on Tariffs
    Zacks

    U.S. Steel Imports Shoot Up in July, Down YTD on Tariffs

    Despite the spike in July, U.S. steel imports dropped roughly 11% year to date under the weight of Section 232 tariffs.

  • Why Is AK Steel (AKS) Down 29.7% Since Last Earnings Report?
    Zacks

    Why Is AK Steel (AKS) Down 29.7% Since Last Earnings Report?

    AK Steel (AKS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • US Steel Industry Has Plenty of Bad News for Trump
    Market Realist

    US Steel Industry Has Plenty of Bad News for Trump

    The US steel industry might have plenty of bad news for President Trump. New investments have been put on hold. There have been some layoffs as well.

  • Steel Giant Nucor in 5 Charts
    Motley Fool

    Steel Giant Nucor in 5 Charts

    The steel industry is out of favor today, but industry icon Nucor stands out from the pack. These graphs show why.

  • U.S. Steel: Troubles Compound amid Market Downturn
    Market Realist

    U.S. Steel: Troubles Compound amid Market Downturn

    On Wednesday, Jefferies lowered U.S. Steel’s (X) target price from $16 to $14. Jefferies also lowered the target price in July.

  • US Steel Industry ‘Thriving’ Says Trump—Is It True?
    Market Realist

    US Steel Industry ‘Thriving’ Says Trump—Is It True?

    Last week, US President Donald Trump said at a rally that the US steel industry was “thriving” under his presidency. Is he right?

  • Where Will AK Steel Be in 5 Years?
    Motley Fool

    Where Will AK Steel Be in 5 Years?

    The U.S. steelmaker is innovating at a fast pace to stay relevant for the future automotive industry.

  • Cincinnati stocks hammered as Dow suffers fourth-biggest drop
    American City Business Journals

    Cincinnati stocks hammered as Dow suffers fourth-biggest drop

    Cincinnati stocks got slammed as the stock market plummeted Wednesday to its fourth-biggest one-day decline of all time.

  • Is AK Steel Holding Corporation (NYSE:AKS) A High Quality Stock To Own?
    Simply Wall St.

    Is AK Steel Holding Corporation (NYSE:AKS) A High Quality Stock To Own?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

  • Thomson Reuters StreetEvents

    Edited Transcript of AKS earnings conference call or presentation 30-Jul-19 12:30pm GMT

    Q2 2019 AK Steel Holding Corp Earnings Call

  • Is the Options Market Predicting a Spike in AK Steel (AKS) Stock?
    Zacks

    Is the Options Market Predicting a Spike in AK Steel (AKS) Stock?

    Investors need to pay close attention to AK Steel (AKS) stock based on the movements in the options market lately.

  • U.S. Steel’s Q2 Earnings: What Should You Expect?
    Market Realist

    U.S. Steel’s Q2 Earnings: What Should You Expect?

    U.S. Steel's Q2 earnings are scheduled to be released Thursday. Although the stock fell to its 52-week low in May, it has bounced back.

  • Why AK Steel Stock Popped 18% Today
    Motley Fool

    Why AK Steel Stock Popped 18% Today

    AK stock is red hot after an earnings beat and a guidance raise.

  • What to Know about AK Steel’s Q2 Earnings Beat
    Market Realist

    What to Know about AK Steel’s Q2 Earnings Beat

    AK Steel (AKS) posted its second-quarter results yesterday after markets closed, beating analysts' expectation for a second straight quarter.