NYSE:AKS

Stock Analysis Report

Executive Summary

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, and stainless and electrical steel products in the United States and internationally.

Rewards

Trading at 17.7% below its fair value

Earnings grew by 36% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -37.8% per year for the next 3 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has AK Steel Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.0%

AKS

4.1%

US Metals and Mining

1.3%

US Market


1 Year Return

33.3%

AKS

17.0%

US Metals and Mining

19.4%

US Market

Return vs Industry: AKS exceeded the US Metals and Mining industry which returned 17% over the past year.

Return vs Market: AKS exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

AKSIndustryMarket
7 Day11.0%4.1%1.3%
30 Day30.4%7.7%2.6%
90 Day25.7%9.3%5.0%
1 Year33.3%33.3%20.6%17.0%22.0%19.4%
3 Year-66.7%-66.7%10.9%5.0%46.8%37.3%
5 Year-41.5%-41.5%31.2%20.8%66.3%48.0%

Price Volatility Vs. Market

How volatile is AK Steel Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AK Steel Holding undervalued compared to its fair value and its price relative to the market?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKS ($3.52) is trading below our estimate of fair value ($4.28)

Significantly Below Fair Value: AKS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AKS is good value based on its PE Ratio (11.3x) compared to the Metals and Mining industry average (12.1x).

PE vs Market: AKS is good value based on its PE Ratio (11.3x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: AKS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AKS is overvalued based on its PB Ratio (8.3x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is AK Steel Holding forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-37.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKS's earnings are forecast to decline over the next 3 years (-37.8% per year).

Earnings vs Market: AKS's earnings are forecast to decline over the next 3 years (-37.8% per year).

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

Revenue vs Market: AKS's revenue (0.03% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AKS's revenue (0.03% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKS's Return on Equity is forecast to be low in 3 years time (2.8%).


Next Steps

Past Performance

How has AK Steel Holding performed over the past 5 years?

62.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKS has a large one-off loss of $63.2M impacting its September 30 2019 financial results.

Growing Profit Margin: AKS's current net profit margins (1.5%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: AKS has become profitable over the past 5 years, growing earnings by 62.1% per year.

Accelerating Growth: AKS's earnings growth over the past year (36%) is below its 5-year average (62.1% per year).

Earnings vs Industry: AKS earnings growth over the past year (36%) exceeded the Metals and Mining industry -9%.


Return on Equity

High ROE: Whilst AKS's Return on Equity (32.7%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AK Steel Holding's financial position?


Financial Position Analysis

Short Term Liabilities: AKS's short term assets ($2.1B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: AKS's short term assets ($2.1B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: AKS's debt to equity ratio (429.4%) is considered high.

Reducing Debt: AKS's debt to equity ratio has reduced from 728.6% to 429.4% over the past 5 years.

Debt Coverage: AKS's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: AKS's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: AKS has a high level of physical assets or inventory.

Debt Coverage by Assets: AKS's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is AK Steel Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AKS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AKS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AKS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of AK Steel Holding's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Roger Newport (54yo)

3.9yrs

Tenure

US$12,319,274

Compensation

Mr. Roger K. Newport has been the Chief Executive Officer of AK Steel Holding Corporation since January 1, 2016. He serves as the Chief Executive Officer and Director at AK Steel Corporation. He Has been t ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD12.32M) is above average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: AKS's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: AKS's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jaime Vasquez (56yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$3.52m
  • Roger Newport (54yo)

    CEO & Director

    • Tenure: 3.9yrs
    • Compensation: US$12.32m
  • Chris Ross (51yo)

    VP, Treasurer & Interim CFO

    • Tenure: 1.9yrs
  • Kirk Reich (51yo)

    President & COO

    • Tenure: 3.9yrs
    • Compensation: US$6.60m
  • Greg Hoffbauer (52yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 6.8yrs
  • Stephanie Bisselberg (48yo)

    Vice President of Human Resources

    • Tenure: 6.7yrs
  • Joseph Alter (42yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 5.6yrs
    • Compensation: US$1.85m
  • Douglas Mitterholzer

    GM of Investor Relations & Assistant Treasurer

    • Tenure: 0yrs
  • Scott Lauschke (49yo)

    Vice President of Sales & Customer Service

    • Tenure: 4.8yrs
    • Compensation: US$1.40m
  • Lisa Jester

    Corporate Manager of Communications & Public Relations

    • Tenure: 0yrs

Board Members

  • Mark Essig (61yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$246.67k
  • William Gerber (66yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$250.42k
  • Mike Michael (64yo)

    Non-Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: US$249.79k
  • Gregory Kenny (66yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$224.17k
  • Vicente Wright (66yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$231.67k
  • Roger Newport (54yo)

    CEO & Director

    • Tenure: 3.9yrs
    • Compensation: US$12.32m
  • Arlene Yocum (61yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$231.67k
  • Dennis Cuneo (70yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$234.17k
  • Dwayne Wilson (60yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$219.17k
  • Sheri Edison (62yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$229.79k

Company Information

AK Steel Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AK Steel Holding Corporation
  • Ticker: AKS
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$1.114b
  • Shares outstanding: 316.45m
  • Website: https://www.aksteel.com

Number of Employees


Location

  • AK Steel Holding Corporation
  • 9227 Centre Pointe Drive
  • West Chester
  • Ohio
  • 45069
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKSNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1994
AKS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1994
AK2DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994
0H6HLSE (London Stock Exchange)YesCommon StockGBUSDMar 1994

Biography

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, and stainless and electrical steel products in the United States and internationally. It produces fl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:31
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.