|Bid||24.82 x 1100|
|Ask||24.83 x 800|
|Day's range||24.57 - 24.99|
|52-week range||23.80 - 37.50|
|Beta (3Y monthly)||3.36|
|PE ratio (TTM)||5.06|
|Earnings date||21 Feb 2017 - 27 Feb 2017|
|Forward dividend & yield||0.10 (0.39%)|
|1y target est||41.78|
As noted in the previous articles, US steel companies’ earnings have improved this year after Section 232 tariffs lifted US steel prices. In this article, we’ll see what companies are doing with their bumper earnings.
In this part, we’ll discuss steel companies’ third-quarter free cash flows. Free cash flow is operating cash flow minus capital expenditure. U.S. Steel (X) generated free cash flows of $164 million in the third quarter as compared to $219 million in the second quarter and $128 million in the third quarter of 2017.
US steel prices rose sharply in the first half of 2018 as President Trump’s Section 232 tariffs lifted US steel prices with the benchmark HRC (hot roll coil) prices rising to a decade high. Higher spot steel prices supported US steel companies’ average selling prices (or ASP) in the last two quarters. However, spot steel prices fell last month. Although prices have stabilized after companies like Nucor (NUE) and ArcelorMittal (MT) announced price hikes, they are still below their 2018 highs.
Previously in this series, we compared steel companies’ third-quarter shipments. In this part, we’ll look at their ASP (average selling price). The ASP is a key driver of steel companies’ performance and impacts their profitability. We saw a sharp rise in steel companies’ ASP this year after President Trump’s Section 232 tariffs lifted US steel prices (SPY) to multiyear highs.
As noted previously, steel companies like ArcelorMittal (MT), Nucor (NUE), and AK Steel (AKS) reported lower sequential shipments in the third quarter. ArcelorMittal also pointed to “temporary market weakness in the US.” According to Steel Dynamics, “customers took a temporary purchasing hiatus in anticipation of lower transaction prices as scrap pricing dipped a little and imports moderated some.” However, Nucor’s response was a bit more nuanced.
Steel companies’ revenues are a function of average steel prices and shipments. In this part, we’ll compare steel companies’ third-quarter shipments.
We’re towards the end of the third-quarter earnings season, and all of the leading US steel producers have released their quarterly earnings. Steel Dynamics was the first major steel company to release its quarterly results on October 17. Nucor (NUE) released earnings on October 18.
Luxembourg, 13 November 2018 - With reference to Article 19(3) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse.
As we noted previously, steel stocks like AK Steel (AKS) and ArcelorMittal (MT) are trading with a year-to-date loss. Steel stocks have underperformed broader equity markets (DIA) in 2018 despite President Trump’s Section 232 tariffs. In this part, we’ll discuss the key reasons why bears love steel stocks.
Now, we’re towards the end of the third-quarter earnings season. Talking of steel stocks, all of the leading US steel producers have released their quarterly earnings. Steel Dynamics was the first major steel company to release its quarterly performance on October 17. Nucor’s (NUE) earnings were released on October 18.
In the final article of this series, we’ll look at Cleveland-Cliffs’ (CLF) valuation and compare it to those of its US steel peers (SLX). Among US (SPY) steel stocks (XME), U.S. Steel Corporation (X) and ArcelorMittal (MT) are trading at the lowest forward EV-to-EBITDA multiples of 3.06x and 3.65x, respectively. Cleveland-Cliffs, on the other hand, is trading at the highest multiple of 5.9x.
US steel production is the key factor driving US steelmakers’ (SLX) (XME) revenues. Investors track production data to get a sense of the direction of overall volumes.
As noted in the previous article, Chinese steel production is up handsomely this year and is running at record levels. China’s car sales have fallen for three consecutive months. China is the world’s largest automotive market.
ArcelorMittal's (MT) Q3 results benefit from higher steel selling prices. The company also keeps 2018 outlook unchanged citing favorable market conditions and healthy demand.
In the previous articles, we looked at indicators pertaining to the US steel industry. Steel production is a key metric that investors should track, as it gives insight into the supply side of the equation. According to the World Steel Association, global steel production rose 4.4% YoY in September.
The assets are the final part of a divestment package the Company agreed with the European Commission (‘EC’) during its merger control investigation into the Company’s acquisition of Ilva S.p.A (‘Ilva’).
Steel prices are the key driver of steel companies’ earnings. We saw a sharp rally in US steel prices this year after Section 232 tariffs. Steel companies like Nucor (NUE) and Steel Dynamics (STLD) are posting record earnings amid higher US steel prices. AK Steel (AKS) also posted its highest third-quarter earnings in a decade. Cleveland-Cliffs (CLF) also benefits from higher US steel prices.
So far in this series, we’ve looked at US steel supply indicators like domestic production and imports. Along with supply, we also need to look at steel demand indicators. In this article, we’ll look at some indicators of US steel demand (SPY).
Lakshmi Mittal became the CEO of ArcelorMittal (AMS:MT) in 1976. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. Read More...
1 November 2018 – ArcelorMittal (‘the Company’) announces that AM Investco Italy Srl (‘AM Investco’)’s transaction to acquire Ilva S.p.A. (‘Ilva’) has completed today. ArcelorMittal is the principal partner in AM Investco with a 94.4 per cent equity stake in the consortium, with Banca Intesa Sanpaolo holding 5.6 per cent. AM Investco’s lease and purchase agreement is effective from today (1 November 2018). Following completion of the transaction, ArcelorMittal has now assumed full management control of Ilva, which will form a new business cluster within ArcelorMittal Europe - Flat Products and be known as ArcelorMittal Italia.
Luxembourg, November 1, 2018 - ArcelorMittal (referred to as “ArcelorMittal” or the “Company”) (MT (New York, Amsterdam, Paris, Luxembourg), MTS (Madrid)), the world’s leading.