|Bid||0.00 x 1200|
|Ask||9.94 x 34100|
|Day's Range||9.60 - 9.93|
|52 Week Range||5.60 - 11.44|
|PE Ratio (TTM)||6.65|
|Earnings Date||Oct 18, 2018 - Oct 22, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||11.89|
Zacks.com featured highlights include: Ligand, Energy Recovery, Turtle Beach, Cleveland-Cliffs and SVB
Metal and mining stocks have plunged in recent weeks as the prices of commodities sink in the face of a strengthening U.S. dollar, as measured by the SPDR S&P Metals and Mining ETF ( XME). Mining companies Coeur Mining, Inc. ( CDE), Cleveland-Cliffs Inc. ( CLF), Freeport-McMoran Inc. ( FCX), Rio Tinto PLC ( RIO) and BHP Billiton Ltd. ( BHP) have already seen their stocks fall dramatically, by as much as 37% from their 2018 highs. Freeport McMoran's is nearly 32% off its 2018 high, and the technical chart suggests shares fall by an additional 13%.
As we noted previously, steel companies’ cash flows have improved amid higher steel prices (CLF). As cash flows increase, steel companies also face the question of capital allocation. Companies can return cash to shareholders in the form of dividends or share buybacks.
The US steel industry has been plagued by higher imports that are allegedly subsidized by foreign governments. US steel companies were relieved when President Trump imposed the Section 232 tariffs on US steel imports earlier this year. The tariffs were tightened more after President Trump refused to extend the temporary exemptions for NAFTA and the European Union. President Trump has authorized doubling the Section 232 tariffs to 50% on Turkish steel.
In the previous part, we discussed steel companies’ second-quarter earnings. In this part, we’ll see what different steel companies had to say about their third-quarter guidance during their second-quarter earnings call.
With the Section 232 tariffs, the US Department of Commerce is aiming to improve the domestic steel industry’s capacity utilization rate. While releasing its Section 232 recommendations, it noted, “The quotas or tariffs imposed should be sufficient, even after any exceptions (if granted), to enable US steel producers to operate at an 80 percent or better average capacity utilization rate based on available capacity in 2017.”
Steel companies sell steel either in the spot market or to contract customers. In contract pricing, several annual contracts roll over at the beginning of the year. As we noted previously, AK Steel’s (AKS) ASP (average selling price) growth has lagged other steel companies (CLF). The lag could be attributed to the higher percentage of contract sales in AK Steel’s product mix. Since most of the contracts rolled over before to the spike in steel prices, AK Steel couldn’t reap the full benefits from higher spot steel prices. ...
In the previous part, we discussed steel companies’ second-quarter shipments. In this part, we’ll see what could drive steel companies’ shipments in the third quarter and beyond.
Shares of Baozun, SolarEdge Technologies, and Cleveland-Cliffs have had incredible returns in 2018, but we think there is more room left to run.
US steel stocks are in the red today. As of 1:30 PM ET, U.S. Steel Corporation (X) and AK Steel (AKS) are respectively trading down 1.1% and 2.4%. Today, the Turkish currency fell to record lows amid the country’s rising frictions with the United States.
In this article, we’ll look at Cleveland-Cliffs’ (CLF) valuation and compare it to those of its US steel peers. We’ll also look at its forward EV-to-EBITDA (enterprise value-to-EBITDA) and PE multiples.
Is Cleveland-Cliffs Well Placed amid Changing US Steel Dynamics? Steel prices are a major driver of steelmakers’ earnings and revenues. According to S&P Global Platts, US (SPY) steel prices rose 17.5% on average in 2017 compared to 2016.
Is Cleveland-Cliffs Well Placed amid Changing US Steel Dynamics? As a result, investors who are interested in Cleveland-Cliffs (CLF) track US steel demand. In this article, we’ll see how investors can track the demand for US steel by monitoring demand indicators.
U.S. Steel Corporation (X) released its second-quarter earnings on August 1. The company’s adjusted EBITDA rose from $376.0 million in the second quarter of 2017 to $451.0 million in the second quarter. Although U.S. Steel’s second-quarter earnings were better than expected, its earnings guidance rattled investors.
US steel production is the key variable that drives US steelmakers’ (SLX) (XME) revenues. AK Steel (AKS) and ArcelorMittal (MT) are Cleveland-Cliffs’ (CLF) customers. Investors track production data to get a sense of the direction of overall volumes.
AK Steel (AKS) released its second-quarter earnings on July 30 after the markets closed and held its earnings call on July 31. AKS stock saw a selling spree and closed with a loss of 13.6% on July 31.
Nucor (NUE), the largest US-based steel producer, released its second-quarter earnings on July 19. Nucor generated revenues of $6.46 billion in the second quarter, compared to $5.17 billion in the second quarter of 2017. Nucor posted EPS of $2.13 in the second quarter, compared to $1.10 in the first quarter and $1.00 in the second quarter of 2017.
So far in this series, we have discussed U.S. Steel Corporation’s (X) risk-return profile. In this part, we’ll discuss the company’s valuation compared to other steel companies.
US steel prices are near a decade high based on the benchmark hot-rolled coil prices. Notably, several downstream metal users including beverage and automotive companies have listed higher steel prices and aluminum premiums in the United States as a drag on earnings. The Section 232 tariffs could also be watered down as President Trump tries to negotiate fresh trade deals with other countries. Currently, investors are waiting to see when US steel prices start softening and how much correction there could be.
The scene is no different for other steel companies. Nucor (NUE) and Steel Dynamics (STLD) are trading with a modest YTD gain of 2.6% and 3.4%, respectively. AK Steel (AKS) has been among the worst performers in the steel space with a loss of 20.5%.
As we noted in the previous part, U.S. Steel Corporation (X) saw a selling spree after its second-quarter earnings release despite posting better-than-expected earnings and increasing its annual guidance. While U.S. Steel Corporation raised its 2018 earnings guidance, the company’s third-quarter guidance was lower than analysts’ expectations. However, there’s a silver lining in U.S. Steel Corporation’s 2018 guidance.
U.S. Steel Corporation (X) released its second-quarter earnings on August 1. The company posted revenues of $3.6 billion—compared to $3.1 billion in the second quarter of 2017. The company’s adjusted EBITDA rose from $376 million to $451 million during this period. U.S. Steel Corporation’s second-quarter adjusted EPS was $1.46—compared to $1.07 in the same quarter last year.