Algoma Steel Valuation
| ASTL Stock | USD 11.26 0.11 0.97% |
At this time, the firm appears to be undervalued. Algoma Steel Group shows a prevailing Real Value of $11.95 per share. The current price of the firm is $11.26. Our model approximates the value of Algoma Steel Group from analyzing the firm fundamentals such as profit margin of (0.06) %, and Return On Equity of -0.1 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Algoma Steel's valuation include:
Price Book 1.1627 | Enterprise Value 1.3 B | Enterprise Value Ebitda 130.8903 | Price Sales 0.4728 | Forward PE 9.1158 |
Undervalued
Today
Please note that Algoma Steel's price fluctuation is not too volatile at this time. Calculation of the real value of Algoma Steel Group is based on 3 months time horizon. Increasing Algoma Steel's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Algoma stock is determined by what a typical buyer is willing to pay for full or partial control of Algoma Steel Group. Since Algoma Steel is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Algoma Stock. However, Algoma Steel's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 11.26 | Real 11.95 | Target 12.88 | Hype 11.25 | Naive 10.78 |
The intrinsic value of Algoma Steel's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Algoma Steel's stock price.
Estimating the potential upside or downside of Algoma Steel Group helps investors to forecast how Algoma stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Algoma Steel more accurately as focusing exclusively on Algoma Steel's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Algoma Steel's intrinsic value based on its ongoing forecasts of Algoma Steel's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Algoma Steel's closest peers.
Algoma Steel Cash |
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Algoma Valuation Trend
Knowing Algoma Steel's actual value is paramount for traders when making sound investment determinations. Using both Algoma Steel's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Algoma Steel Total Value Analysis
Algoma Steel Group is presently anticipated to have valuation of 1.29 B with market capitalization of 1.18 B, debt of 156.5 M, and cash on hands of 1.14 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Algoma Steel fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
1.29 B | 1.18 B | 156.5 M | 1.14 B |
Algoma Steel Investor Information
About 76.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.16. Some equities with similar Price to Book (P/B) outperform the market in the long run. Algoma Steel Group recorded a loss per share of 1.04. The entity last dividend was issued on the 27th of November 2024. Based on the analysis of Algoma Steel's profitability, liquidity, and operating efficiency, Algoma Steel Group is doing better financially today then in previous quarter. It has a moderate likelihood of reporting better financial numbers in December.Algoma Steel Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Algoma Steel has an asset utilization ratio of 104.48 percent. This suggests that the Company is making $1.04 for each dollar of assets. An increasing asset utilization means that Algoma Steel Group is more efficient with each dollar of assets it utilizes for everyday operations.Algoma Steel Ownership Allocation
Algoma Steel holds a total of 104.42 Million outstanding shares. The majority of Algoma Steel Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Algoma Steel Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Algoma Steel. Please pay attention to any change in the institutional holdings of Algoma Steel Group as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Algoma Steel Profitability Analysis
The company reported the previous year's revenue of 2.8 B. Net Income was 105.2 M with profit before overhead, payroll, taxes, and interest of 389.8 M.Algoma Steel Past Distributions to stockholders
About Algoma Steel Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Algoma Steel Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Algoma Steel Group based exclusively on its fundamental and basic technical indicators. By analyzing Algoma Steel's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Algoma Steel's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Algoma Steel. We calculate exposure to Algoma Steel's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Algoma Steel's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 278.7 M | 337.1 M | |
| Pretax Profit Margin | 0.05 | 0.05 | |
| Operating Profit Margin | 0.06 | 0.04 | |
| Net Profit Margin | 0.04 | 0.04 | |
| Gross Profit Margin | 0.11 | 0.07 |
A single share of Algoma Steel represents a small ownership stake in the entity. As a stockholder of Algoma, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Algoma Steel Dividends Analysis For Valuation
Dividend Payout Ratio is expected to rise to 0.28 this year, although the value of Dividends Paid will most likely fall to about 16.5 M. . At this time, Algoma Steel's Retained Earnings are quite stable compared to the past year. Price Earnings Ratio is expected to rise to 20.24 this year, although the value of Earnings Yield will most likely fall to 0.04.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 27.9 M | 16.5 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.27 | 0.28 | |
| Dividend Paid And Capex Coverage Ratio | 0.57 | 0.54 |
There are various types of dividends Algoma Steel can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Algoma shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Algoma Steel Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Algoma pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Algoma Steel by the value of the dividends paid out.
Algoma Steel Growth Indicators
Investing in growth stocks can be very risky. If the company such as Algoma Steel does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 133 M | |
| Quarterly Earnings Growth Y O Y | -0.93 | |
| Forward Price Earnings | 9.1158 |
Algoma Steel Current Valuation Indicators
Algoma Steel's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Algoma Steel's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Algoma Steel, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Algoma Steel's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Algoma Steel's worth.When determining whether Algoma Steel Group is a strong investment it is important to analyze Algoma Steel's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Algoma Steel's future performance. For an informed investment choice regarding Algoma Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Algoma Steel Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Diversified Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Algoma Steel. If investors know Algoma will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Algoma Steel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.93) | Dividend Share 0.236 | Earnings Share (1.04) | Revenue Per Share 22.941 | Quarterly Revenue Growth (0.18) |
The market value of Algoma Steel Group is measured differently than its book value, which is the value of Algoma that is recorded on the company's balance sheet. Investors also form their own opinion of Algoma Steel's value that differs from its market value or its book value, called intrinsic value, which is Algoma Steel's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Algoma Steel's market value can be influenced by many factors that don't directly affect Algoma Steel's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Algoma Steel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Algoma Steel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Algoma Steel's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.