ALGOMA STEEL GROUP INC (ASTL.CA) Stock Fundamental Analysis
TSX:ASTL - Toronto Stock Exchange - CA0156581070 - Common Stock - Currency: CAD
ASTL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. Both the profitability and financial health of ASTL have multiple concerns. ASTL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ASTL has reported negative net income.
In the past year ASTL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ASTL reported negative net income in multiple years.
Of the past 5 years ASTL 4 years had a positive operating cash flow.
1.2 Ratios
ASTL has a Return On Assets of -5.08%. This is in the better half of the industry: ASTL outperforms 69.32% of its industry peers.
The Return On Equity of ASTL (-11.13%) is better than 60.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.08% | ||
| ROE | -11.13% | ||
| ROIC | N/A |
ROA(3y)15.98%
ROA(5y)6.68%
ROE(3y)27.2%
ROE(5y)-4.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of ASTL has grown nicely.
In the last couple of years the Operating Margin of ASTL has declined.
With an excellent Gross Margin value of 1.15%, ASTL belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
In the last couple of years the Gross Margin of ASTL has declined.
ASTL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.15% |
OM growth 3Y49.72%
OM growth 5Y-11.88%
PM growth 3YN/A
PM growth 5Y25.82%
GM growth 3Y18.7%
GM growth 5Y-4.41%
2. Health
2.1 Basic Checks
ASTL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ASTL has been increased compared to 1 year ago.
The debt/assets ratio for ASTL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that ASTL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ASTL (1.57) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that ASTL is not too dependend on debt financing.
ASTL's Debt to Equity ratio of 0.42 is on the low side compared to the rest of the industry. ASTL is outperformed by 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.57 |
ROIC/WACCN/A
WACC8.89%
2.3 Liquidity
ASTL has a Current Ratio of 3.31. This indicates that ASTL is financially healthy and has no problem in meeting its short term obligations.
ASTL has a better Current ratio (3.31) than 63.65% of its industry peers.
ASTL has a Quick Ratio of 1.66. This is a normal value and indicates that ASTL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.66, ASTL is in line with its industry, outperforming 50.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for ASTL have decreased strongly by -477.40% in the last year.
ASTL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.22% yearly.
ASTL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.34%.
Measured over the past years, ASTL shows a small growth in Revenue. The Revenue has been growing by 0.71% on average per year.
EPS 1Y (TTM)-477.4%
EPS 3YN/A
EPS 5Y22.22%
EPS Q2Q%-383.33%
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y15.92%
Revenue growth 5Y0.71%
Sales Q2Q%-18.06%
3.2 Future
The Earnings Per Share is expected to grow by 56.12% on average over the next years. This is a very strong growth
Based on estimates for the next years, ASTL will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y-678.44%
EPS Next 2Y-12.89%
EPS Next 3Y56.12%
EPS Next 5YN/A
Revenue Next Year-9.19%
Revenue Next 2Y1.43%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ASTL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 34.65, the valuation of ASTL can be described as expensive.
Based on the Price/Forward Earnings ratio, ASTL is valued cheaper than 86.62% of the companies in the same industry.
ASTL is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.65 |
4.2 Price Multiples
86.62% of the companies in the same industry are more expensive than ASTL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 215.19 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ASTL's earnings are expected to grow with 56.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.89%
EPS Next 3Y56.12%
5. Dividend
5.1 Amount
ASTL has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ASTL has falen by -31.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ASTL's Dividend Yield is rather good when compared to the industry average which is at 7.55. ASTL pays more dividend than 97.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, ASTL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
ASTL has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of ASTL are negative and hence is the payout ratio. ASTL will probably not be able to sustain this dividend level.
DP-17.93%
EPS Next 2Y-12.89%
EPS Next 3Y56.12%
TSX:ASTL (2/21/2025, 7:00:00 PM)
10.78
-0.25 (-2.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.1%
Inst Owner ChangeN/A
Ins Owners4.77%
Ins Owner ChangeN/A
Market Cap1.13B
AnalystsN/A
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0.27
Dividend Growth(5Y)N/A
DP-17.93%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)64.57%
Min EPS beat(2)-142.42%
Max EPS beat(2)271.57%
EPS beat(4)2
Avg EPS beat(4)162.57%
Min EPS beat(4)-232.48%
Max EPS beat(4)753.6%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.42%
Min Revenue beat(2)3.45%
Max Revenue beat(2)5.38%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)5.81%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-88.37%
EPS NQ rev (3m)-88.37%
EPS NY rev (1m)-58.16%
EPS NY rev (3m)-294.07%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 34.65 | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | 10.07 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 215.19 |
EPS(TTM)-1.29
EYN/A
EPS(NY)0.31
Fwd EY2.89%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)1.07
OCFY9.93%
SpS23.82
BVpS13.54
TBVpS13.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.08% | ||
| ROE | -11.13% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.15% | ||
| FCFM | N/A |
ROA(3y)15.98%
ROA(5y)6.68%
ROE(3y)27.2%
ROE(5y)-4.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)28.88%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y49.72%
OM growth 5Y-11.88%
PM growth 3YN/A
PM growth 5Y25.82%
GM growth 3Y18.7%
GM growth 5Y-4.41%
F-Score3
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 99 | ||
| Cap/Depr | 297.72% | ||
| Cap/Sales | 16.27% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1863.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 1.57 |
F-Score3
WACC8.89%
ROIC/WACCN/A
Cap/Depr(3y)322.39%
Cap/Depr(5y)227.68%
Cap/Sales(3y)11.3%
Cap/Sales(5y)8.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-477.4%
EPS 3YN/A
EPS 5Y22.22%
EPS Q2Q%-383.33%
EPS Next Y-678.44%
EPS Next 2Y-12.89%
EPS Next 3Y56.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.34%
Revenue growth 3Y15.92%
Revenue growth 5Y0.71%
Sales Q2Q%-18.06%
Revenue Next Year-9.19%
Revenue Next 2Y1.43%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
EBIT growth 1Y-182.69%
EBIT growth 3Y73.56%
EBIT growth 5Y-11.25%
EBIT Next Year-125.31%
EBIT Next 3Y44.84%
EBIT Next 5YN/A
FCF growth 1Y-143.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.51%
OCF growth 3Y231.43%
OCF growth 5Y1.35%