company background image
ASTL

Algoma Steel Group NasdaqGM:ASTL Stock Report

Last Price

US$6.94

Market Cap

US$731.2m

7D

-6.5%

1Y

-34.4%

Updated

04 Oct, 2022

Data

Company Financials +

Algoma Steel Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Algoma Steel Group
Historical stock prices
Current Share PriceUS$6.94
52 Week HighUS$13.65
52 Week LowUS$6.21
Beta0
1 Month Change-21.76%
3 Month Change-23.15%
1 Year Change-34.41%
3 Year Changen/a
5 Year Changen/a
Change since IPO-28.53%

Recent News & Updates

Sep 28

Algoma Steel slumps after sees Q2 adjusted EBITDA $75M-$80M and decline in shipments amid production shortfall

Algoma Steel (NASDAQ:ASTL) expects Q2 2023 Adjusted EBITDA to be in a range of $75 million to $80 million. Michael Garcia, the company’s CEO, commented, "In the quarter we experienced a production shortfall due to various operational challenges, resulting in a decline in shipments to an estimated 415,000 to 425,000 tons for the quarter." "Amid the challenges faced in the quarter, we continue to see steady demand for our products and are advancing the development and construction of our transformative Electric Arc Furnace project, which remains on time and on budget for a mid-year 2024 start-up." Shares are down 12.4% after-hours.

Aug 29

Algoma Steel Group goes ex-dividend tomorrow

Algoma Steel Group (NASDAQ:ASTL) had declared $0.05/share quarterly dividend, in line with previous. Forward yield 2.09% Payable Sept. 30; for shareholders of record Aug. 31; ex-div Aug. 30. See ASTL Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

ASTLUS Metals and MiningUS Market
7D-6.5%12.6%4.4%
1Y-34.4%-6.2%-18.2%

Return vs Industry: ASTL underperformed the US Metals and Mining industry which returned -9.6% over the past year.

Return vs Market: ASTL underperformed the US Market which returned -20% over the past year.

Price Volatility

Is ASTL's price volatile compared to industry and market?
ASTL volatility
ASTL Average Weekly Movement5.8%
Metals and Mining Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: ASTL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ASTL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19012,734Mike Garciahttps://algoma.com

Algoma Steel Group Inc. produces and sells steel products primarily in North America. It provides flat/sheet steel products, including temper rolling, cold rolled, hot-rolled pickled and oiled products, floor plate, and cut-to-length products for the automotive industry, hollow structural product manufacturers, and the light manufacturing and transportation industries; and plate steel products that consist of rolled, hot-rolled, and heat-treated for use in the construction or manufacture of railcars, buildings, bridges, off-highway equipment, storage tanks, ships, and military applications. Algoma Steel Group Inc. was founded in 1901 and is headquartered in Sault Ste.

Algoma Steel Group Fundamentals Summary

How do Algoma Steel Group's earnings and revenue compare to its market cap?
ASTL fundamental statistics
Market CapUS$731.19m
Earnings (TTM)US$704.64m
Revenue (TTM)US$2.91b

1.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASTL income statement (TTM)
RevenueCA$3.95b
Cost of RevenueCA$2.36b
Gross ProfitCA$1.59b
Other ExpensesCA$636.30m
EarningsCA$955.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.07
Gross Margin40.29%
Net Profit Margin24.18%
Debt/Equity Ratio6.9%

How did ASTL perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

1%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ASTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASTL?

Other financial metrics that can be useful for relative valuation.

ASTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.02x

Price to Earnings Ratio vs Peers

How does ASTL's PE Ratio compare to its peers?

ASTL PE Ratio vs Peers
The above table shows the PE ratio for ASTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.1x
TMST TimkenSteel
3.6x-33.9%US$782.6m
SCHN Schnitzer Steel Industries
4.4x-19.2%US$891.8m
SXC SunCoke Energy
6.3x-17.5%US$527.9m
RYI Ryerson Holding
2.1xn/aUS$1.1b
ASTL Algoma Steel Group
1x-56.1%US$731.2m

Price-To-Earnings vs Peers: ASTL is good value based on its Price-To-Earnings Ratio (1x) compared to the peer average (4.1x).


Price to Earnings Ratio vs Industry

How does ASTL's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: ASTL is good value based on its Price-To-Earnings Ratio (1x) compared to the US Metals and Mining industry average (6.7x)


Price to Earnings Ratio vs Fair Ratio

What is ASTL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1x
Fair PE Ratio3.1x

Price-To-Earnings vs Fair Ratio: ASTL is good value based on its Price-To-Earnings Ratio (1x) compared to the estimated Fair Price-To-Earnings Ratio (3.1x).


Share Price vs Fair Value

What is the Fair Price of ASTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASTL ($6.94) is trading above our estimate of fair value ($3.53)

Significantly Below Fair Value: ASTL is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is Algoma Steel Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-56.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASTL's earnings are forecast to decline over the next 3 years (-56.1% per year).

Earnings vs Market: ASTL's earnings are forecast to decline over the next 3 years (-56.1% per year).

High Growth Earnings: ASTL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ASTL's revenue is expected to decline over the next 3 years (-8.4% per year).

High Growth Revenue: ASTL's revenue is forecast to decline over the next 3 years (-8.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASTL's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Algoma Steel Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


74.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASTL has high quality earnings.

Growing Profit Margin: ASTL's current net profit margins (24.2%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: ASTL's earnings have grown significantly by 74.3% per year over the past 5 years.

Accelerating Growth: ASTL's earnings growth over the past year (461.4%) exceeds its 5-year average (74.3% per year).

Earnings vs Industry: ASTL earnings growth over the past year (461.4%) exceeded the Metals and Mining industry 82.4%.


Return on Equity

High ROE: ASTL's Return on Equity (68.7%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Algoma Steel Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASTL's short term assets (CA$2.2B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: ASTL's short term assets (CA$2.2B) exceed its long term liabilities (CA$618.0M).


Debt to Equity History and Analysis

Debt Level: ASTL has more cash than its total debt.

Reducing Debt: Insufficient data to determine if ASTL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ASTL's debt is well covered by operating cash flow (1488.9%).

Interest Coverage: ASTL's interest payments on its debt are well covered by EBIT (44.1x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Algoma Steel Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.71%

Current Dividend Yield

Dividend Yield vs Market

Algoma Steel Group Dividend Yield vs Market
How does Algoma Steel Group dividend yield compare to the market?
SegmentDividend Yield
Company (Algoma Steel Group)2.7%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Metals and Mining)3.3%
Analyst forecast in 3 Years (Algoma Steel Group)2.7%

Notable Dividend: ASTL's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: ASTL's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (4.63%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ASTL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ASTL's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (1.3%), ASTL's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (2.3%), ASTL's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Mike Garcia (57 yo)

0.33yr

Tenure

Mr. Michael Dennis Garcia, also known as Mike, serves as Chief Executive Officer and Director at Algoma Steel Group Inc since June 01, 2022. He had been the President of Domtar Pulp and Paper at Domtar Cor...


Leadership Team

Experienced Management: ASTL's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ASTL's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ASTL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGM:ASTL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
12 Sep 22SellUS$1,054,158Brian PrattIndividual112,372US$9.46
05 Aug 22SellUS$146,379,529Bain Capital Credit, LPCompany15,013,285US$9.75
11 Apr 22SellUS$9,164,040Bain Capital Credit, LPCompany810,565US$11.65

Ownership Breakdown

What is the ownership structure of ASTL?
Owner TypeNumber of SharesOwnership Percentage
Private Companies507,9370.5%
Individual Insiders6,507,0285.8%
VC/PE Firms14,226,71712.7%
Hedge Funds19,690,71017.5%
Institutions71,493,48663.6%

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Top 25 shareholders own 87.44% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.5%
Bain Capital, LP
14,226,717CA$98.7m0%0.95%
10.01%
Barclays Bank PLC, Securities Investments
10,545,150CA$73.2m0%0.21%
7.84%
Contrarian Capital Management LLC
8,261,359CA$57.3m-4.5%9.75%
5.82%
Maple Rock Capital Partners Inc.
6,136,299CA$42.6m0%5.11%
5.02%
MSD Partners, L.P.
5,293,052CA$36.7m-6.3%3.88%
4.91%
Bain Capital Credit, LP
5,168,485CA$35.9m-74.39%6.49%
3.53%
Finepoint Capital LP
3,716,732CA$25.8m0%7.04%
3.48%
Brian Pratt
3,663,962CA$25.4m-3.26%no data
3.36%
Mason Capital Management LLC
3,543,769CA$24.6m56.62%2.68%
2.9%
Littlejohn & Co., LLC
3,058,454CA$21.2m4.5%6.85%
2.88%
GoldenTree Asset Management LP
3,034,769CA$21.1m-32.6%1.04%
2.54%
Merrill Lynch & Co. Inc., Banking Investments
2,672,906CA$18.5m0%0.01%
2.37%
Philosophy Capital Management LLC
2,492,595CA$17.3m80.61%4.82%
2.3%
Invesco Ltd.
2,426,214CA$16.8m471.43%0.01%
2.19%
Bracebridge Capital, LLC
2,305,327CA$16.0m-7.37%4.95%
1.97%
Eric Rosenfeld
2,079,086CA$14.4m-0.53%no data
1.87%
Lonestar Capital Management LLC
1,969,000CA$13.7m181.29%5.93%
1.8%
The Sonic Fund II, L.P.
1,900,000CA$13.2m35.71%8.01%
1.44%
Crestline Investors, Inc.
1,512,340CA$10.5m41.34%1.29%
1.42%
Newtyn Management, LLC
1,500,000CA$10.4m-15.38%1.88%
1.33%
Solas Capital Management, LLC
1,402,260CA$9.7m133.71%5.06%
1.29%
EHP Funds Inc.
1,354,241CA$9.4m9.95%1.89%
1.29%
Edgehill Partners
1,354,241CA$9.4m-18.02%1.7%
1.27%
Contrarius Investment Management Limited
1,334,148CA$9.3m2.36%0.55%
1.12%
Highline Capital Management, L.P.
1,178,430CA$8.2m-9.96%15.89%

Company Information

Algoma Steel Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Algoma Steel Group Inc.
  • Ticker: ASTL
  • Exchange: NasdaqGM
  • Founded: 1901
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: US$731.193m
  • Shares outstanding: 105.36m
  • Website: https://algoma.com

Number of Employees


Location

  • Algoma Steel Group Inc.
  • 105 West Street
  • Sault Ste. Marie
  • Ontario
  • P6A 7B4
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASTLNasdaqGM (Nasdaq Global Market)YesNew Common SharesUSUSDMar 2021
ASTLTSX (The Toronto Stock Exchange)YesNew Common SharesCACADMar 2021
9ZYDB (Deutsche Boerse AG)YesNew Common SharesDEEURMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.