UNITED STATES STEEL CORP (X)
US9129091081 - Common Stock
We assign a fundamental rating of 4 out of 10 to X. X was compared to 157 industry peers in the Metals & Mining industry. While X is still in line with the averages on profitability rating, there are concerns on its financial health. X is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year X was profitable.
X had a positive operating cash flow in the past year.
In multiple years X reported negative net income over the last 5 years.
In the past 5 years X always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.90%, X is doing good in the industry, outperforming 62.42% of the companies in the same industry.
X has a Return On Equity of 3.39%. This is in the better half of the industry: X outperforms 61.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.98%, X is in line with its industry, outperforming 45.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for X is significantly above the industry average of 8.31%.
The 3 year average ROIC (15.70%) for X is well above the current ROIC(0.98%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.39% | ||
| ROIC | 0.98% |
ROA(3y)13.59%
ROA(5y)5.14%
ROE(3y)26.38%
ROE(5y)6.59%
ROIC(3y)15.7%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of X (2.41%) is better than 63.06% of its industry peers.
X's Profit Margin has declined in the last couple of years.
The Operating Margin of X (1.27%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of X has declined.
X's Gross Margin of 10.33% is in line compared to the rest of the industry. X outperforms 40.76% of its industry peers.
X's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.27% | ||
| PM (TTM) | 2.41% | ||
| GM | 10.33% |
OM growth 3YN/A
OM growth 5Y-8.13%
PM growth 3YN/A
PM growth 5Y-8.82%
GM growth 3Y70.69%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), X is creating some value.
The number of shares outstanding for X has been reduced compared to 1 year ago.
X has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, X has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 indicates that X is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, X is doing worse than 61.78% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that X is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, X is doing worse than 66.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC0.1
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.67 indicates that X should not have too much problems paying its short term obligations.
X's Current ratio of 1.67 is on the low side compared to the rest of the industry. X is outperformed by 70.70% of its industry peers.
X has a Quick Ratio of 1.08. This is a normal value and indicates that X is financially healthy and should not expect problems in meeting its short term obligations.
X has a Quick ratio of 1.08. This is in the lower half of the industry: X underperforms 66.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
X shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.73%.
The Earnings Per Share has been decreasing by -2.46% on average over the past years.
Looking at the last year, X shows a very negative growth in Revenue. The Revenue has decreased by -10.81% in the last year.
X shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
EPS 1Y (TTM)-41.73%
EPS 3YN/A
EPS 5Y-2.46%
EPS Q2Q%-60%
Revenue 1Y (TTM)-10.81%
Revenue growth 3Y22.83%
Revenue growth 5Y4.95%
Sales Q2Q%-13.04%
3.2 Future
The Earnings Per Share is expected to decrease by -8.68% on average over the next years.
X is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.23% yearly.
EPS Next Y-49.64%
EPS Next 2Y-24.69%
EPS Next 3Y-8.68%
EPS Next 5YN/A
Revenue Next Year-10.66%
Revenue Next 2Y-2.36%
Revenue Next 3Y-0.9%
Revenue Next 5Y0.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
X is valuated correctly with a Price/Earnings ratio of 13.67.
Based on the Price/Earnings ratio, X is valued cheaply inside the industry as 81.53% of the companies are valued more expensively.
X's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 14.63, the valuation of X can be described as correct.
X's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. X is cheaper than 67.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, X is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
X's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. X is cheaper than 63.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
X has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as X's earnings are expected to decrease with -8.68% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.69%
EPS Next 3Y-8.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, X is not a good candidate for dividend investing.
X's Dividend Yield is a higher than the industry average which is at 2.98.
With a Dividend Yield of 0.55, X pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of X decreases each year by -27.06%.
X has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-27.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The Dividend Rate of X has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP0%
EPS Next 2Y-24.69%
EPS Next 3Y-8.68%
UNITED STATES STEEL CORP
NYSE:X (11/22/2024, 12:12:57 PM)
39.495
-1.02 (-2.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 14.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 3.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.27% | ||
| PM (TTM) | 2.41% | ||
| GM | 10.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-41.73%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-49.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.81%
Revenue growth 3Y22.83%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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OCF growth 1Y
OCF growth 3Y
OCF growth 5Y