Update shared on27 Aug 2025
Fair value Decreased 6.17%Analysts have lowered their price target for Usinas Siderúrgicas de Minas Gerais to R$5.43, citing ongoing pressure on steel prices from Chinese exports, persistent external and structural challenges, and the need for further operational improvements despite recent profitability gains.
Analyst Commentary
- Ongoing elevated steel exports from China in 2025 continue to pressure global steel prices and weigh on Usiminas' profitability outlook.
- Despite recent share price gains and improved profitability, analysts believe these are not sustainable due to persistent external headwinds.
- The company faces significant cyclical and structural challenges that limit upside potential.
- Usiminas requires ongoing capital expenditures above depreciation levels to improve efficiency and address structural competitiveness.
- Structural improvements in operations are seen as necessary before a more constructive view can be taken.
What's in the News
- Batista family acquired a 5.08% stake in Usinas Siderúrgicas de Minas Gerais S.A. from Companhia Siderúrgica Nacional for approximately BRL 260 million.
- Following the transaction, Companhia Siderúrgica Nacional holds 10.13% of the common shares, 5.08% of the preferred shares, or 7.92% of the total share capital of Usiminas.
Valuation Changes
Summary of Valuation Changes for Usinas Siderúrgicas de Minas Gerais
- The Consensus Analyst Price Target has fallen from R$5.79 to R$5.43.
- The Future P/E for Usinas Siderúrgicas de Minas Gerais has significantly fallen from 25.25x to 20.51x.
- The Net Profit Margin for Usinas Siderúrgicas de Minas Gerais has significantly risen from 1.90% to 2.18%.
Disclaimer
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