|Bid||48.00 x 1200|
|Ask||53.87 x 2900|
|Day's Range||50.63 - 51.45|
|52 Week Range||32.20 - 52.10|
|PE Ratio (TTM)||15.14|
|Forward Dividend & Yield||0.75 (1.60%)|
|1y Target Est||N/A|
Cleveland-Cliffs (CLF) stock has been on a roller coaster ride for most of 2018. While CLF stock has seen a lot of volatility in 2018, it’s making a strong upward move in the second quarter on strong fundamentals.
President Trump extended the temporary Section 232 exemptions until the end of this month. As quoted by CNBC, the statement on the exemptions said, “The Administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. South Korea has managed to get a long-term exemption from the Section 232 tariffs.
In this article, we’ll look at the 2Q18 earnings guidances provided by leading steel companies during their 1Q18 earnings calls.
Moody's Investors Service ("Moody's") says Steel Dynamics, Inc's (SDI - Ba1 Corporate Family Rating, Stable) announced acquisition of Companhia Siderurgica Nacional Heartland Flat Roll Operations (CSN Heartland -- ultimately a subsidiary of Brazilian based Companhia Siderurgica Nacional -- B3 Corporate Family Rating, stable) is credit positive as it will expand SDI's flat roll steel capacity, particularly in high margin value-added products and will broaden its operational footprint and end-markets served. The acquisition price of $400 million (including $60 million of normalized working capital purchase price) is easily accommodated within SDI's iquidity position, which includes a cash position of $985.8 million at March 31, 2018. Headquartered in Fort Wayne, Indiana, Steel Dynamics, Inc. (SDI) manufactures steel through its domestic mini-mills, which have an estimated annual production capacity of approximately 11 million tons prior to the announced acquisition.
Moody's Investors Service ("Moody's") comments that Companhia Siderurgica Nacional's ("CSN", B3 stable) US asset sale is credit positive. On May 14, CSN announced that it entered into agreement to sell its US subsidiary CSN LLC to Steel Dynamics, Inc. (Ba1 stable) for $400 million (about BRL 1.5 billion) - with a potential for an additional $90 million in working capital adjustments.
US steel companies, including U.S. Steel Corporation (X), Nucor (NUE), and Steel Dynamics (STLD), reported sequential as well as yearly rises in their 1Q18 ASPs (average selling price).
Steel Dynamics' (STLD) latest move is expected to expand its total shipping capability and annual flat roll steel shipping capacity and also expands its flat roll steel product portfolio.
Previously in this series, we did a comparative analysis of steel companies’ 1Q18 shipments. In this article, we’ll look at their ASPs (average selling price).
AK Steel (AKS) is the only steel company among those under our review to have reported a yearly fall in its 1Q18 steel shipments. In this article, we’ll see what different steel companies have guided for their 2Q18 steel shipments.
Steel companies’ revenues are a function of average steel prices and shipments, so it’s pertinent for steel investors to follow quarterly production and shipment data.
During the 4Q17 earnings call, ArcelorMittal (MT) announced its plan to restore the annual dividend program that was suspended in 2015. The company has reinstated its annual dividend at $0.10 per share from this year. Meanwhile, ArcelorMittal intends to pay dividends as a percentage of its free cash flows once its net debt falls below $6 billion. As of March 31, ArcelorMittal had a net debt of $11.1 billion. The company’s net debt rose almost $1 billion from the sequential quarter amid working capital buildup, a share buyback, and the forex impact in the quarter.
Versum Materials (VSM) demonstrates strong performance in Q2 on the back of strong top-line growth in Materials and DS&S segments. The company also raises guidance for fiscal 2018.
On May 9, Steel Dynamics (STLD) received a “strong buy” rating from three analysts, while eight analysts gave the stock a “buy” rating. The remaining four analysts polled by Thomson Reuters on May 9 gave the stock a “hold” rating.
Gerdau's (GGB) first-quarter 2018 profitability gains from steel production and shipments as well as rise in steel price internationally. Fall in interest expenses aids the company.
Kronos Worldwide's (KRO) Q1 earnings benefit from higher income from operations on the back of higher average selling prices, but its results trailed expectations.
Arconic (ARNC) has witnessed a significant price decline in the past four weeks, and is seeing negative earnings estimate revisions as well.
As we noted in the previous part, U.S. Steel Corporation’s (X) forward valuation multiples appear to be on the lower side compared to other steel stocks including AK Steel (AKS). In this part, we’ll look at U.S. Steel Corporation’s growth drivers. We’ll discuss the risks that could help us understand whether there’s more downside for the stock.
American Vanguard's (AVD) Q1 results benefit from 2017 product and company acquisitions, along with its diversified presence in many markets.
U.S. Steel Corporation: Has the Storm Settled Down? U.S. Steel Corporation (X) is valued at an EV of 4.35x its 2018 consensus EBITDA and 4.13x its 2019 expected EBITDA. AK Steel (AKS) and Steel Dynamics (STLD) are trading at 2018 EV-to-EBITDA multiples of 6.42x and 6.22x, respectively.
Zacks Industry Outlook Highlights: Nucor, Commercial Metals, ArcelorMittal and Steel Dynamics