Steel Dynamics Inc
Why the capacity utilization rate came down at Steel Dynamics
One of the key metrics in the steel industry is the capacity utilization rate. It represents the actual production compared to the maximum possible production.
Analysts Still Hate Steel Stocks despite Bumper Earnings
Overall, it has been a mixed earnings season for steel companies.
US Steel Production Disappoints and Declines 7.2%
The AISI releases the weekly steel production figures. Steel production in the US has declined 7.2% YoY in the first five months of this year.
What Should You Expect from U.S. Steel’s 1Q18 Earnings?
1Q18 earnings season is in full swing. So what should you expect for U.S. Steel?
Why Cliffs Raised Guidance for US Volumes
US iron ore (or USIO) is the main driver for Cleveland-Cliffs’s (CLF) top and bottom lines.
Steel Imports Reach Record Levels In October
Compared to the first ten months of last year, steel imports are up by more than 35%. This is an alarming situation.
What Weighed down AK Steel’s 3Q17 Performance?
AK Steel (AKS) reported adjusted EBITDA of $69.2 million in 3Q17, compared with $142 million in 2Q17 and $157 million in 3Q16.
Inside AK Steel’s Valuation: Analyzing 2018 Drivers
U.S. Steel (X) has the lowest forward valuation multiple in our coverage of steel stocks. The stock is trading at 4.97x its 2018 consensus EBITDA.
US Steel in Q2 2018: Guidance, Analysts’ Actions, and Trump
Despite President Trump’s tariffs on imported steel, US steel stocks—with the exception of Steel Dynamics—have sagged this year.
Can Falling Scrap Prices Drive US Steel Prices Lower?
Integrated miners like U.S. Steel and ArcelorMittal use primarily iron ore, whereas minimills like Nucor and Steel Dynamics rely more on steel scrap.
Why US Steelmakers’ Party Might Not Last Long
Due to trade cases, the US steel industry has turned into a virtual island largely immune to global steel prices—at least in the short term.
What Do Current Market Dynamics Suggest for U.S. Steel’s Guidance?
Despite its cost headwinds, U.S. Steel (X) expects to post EBITDA of $1.3 billion in 2017.
Must-know: The biggest risk US steel companies face
Strong steel demand should turn into higher revenues for U.S. steel companies. However, rising imports have impacted steel demand.
Steel Companies Tone Down Expectations after Steel Price Rout
U.S. Steel (X) lowered its 2018 EBITDA guidance due to the recent correction in spot steel prices.
Solid performance of U.S. Steel’s flat-rolled segment
The increase in U.S. Steel’s profits at the flat-rolled segment was due primarily to Carnegie Way benefits. The company is expected to operate at higher utilization levels in the coming quarters. This is a positive sign for U.S. Steel (X) investors.
Can AK Steel’s Second-Quarter Earnings Call Reassure Investors?
During AK Steel’s second-quarter earnings call, analysts could be closely watching the company’s ASP (average selling price) guidance.
Must-know: Does the slowdown in Europe impact your investments?
The GDP figures in the second quarter raised fears about the European Union’s sustainability growth. The ECB recognized the severity of the situation.
U.S. Steel or AKS: Which Is a Better Play on Spot Steel Prices?
Almost 60% of U.S. Steel’s US flat steel sales are either spot or have monthly or quarterly resets and would enjoy the benefits of higher spot steel prices.
How Analysts Are Rating Steel Dynamics ahead of Its 3Q17 Earnings
Steel Dynamics (STLD), the third largest US-based steel producer after Nucor (NUE) and U.S. Steel (X), is expected to release its 3Q17 earnings on October 18.
AK Steel’s Outlook Looks Gloomy after Earnings Miss
AK Steel (AKS) reported its third-quarter earnings on October 25 after the markets closed. The company reported revenues of $1.74 billion.
What to Expect from Cleveland-Cliffs’ 3Q17 Earnings
Cleveland-Cliffs (CLF) is scheduled to release its 3Q17 results before the US market opens on October 20. In this series, we’ll look ahead to CLF’s earnings and management call.
Cleveland-Cliffs’ Q2 2018 Earnings: What to Look Forward To
Cleveland-Cliffs (CLF) will release its second-quarter results before the market opens on July 20.
Steel Companies’ Third-Quarter Guidance: Key Takeaways
During the second-quarter earnings call, U.S. Steel Corporation raised its 2018 EBITDA guidance to $1.85 billion–$1.90 billion.
Why the Chinese slowdown concerns steel plays the most
China is the biggest steel consumer. It accounts for almost half of global steel consumption. The slowdown in Chinese steel consumption isn’t a healthy sign for global steel markets.
Cash Flows Improve for US Steel Industry in Challenging Market
Of the three forms of cash flow, operating cash flow is the most important for a company. Let’s explore the trend in various steel companies’ cash flow metrics in 2Q15.
U.S. Steel Might Need to Do Some Firefighting Today
U.S. Steel Corporation (X) released its 1Q18 earnings results yesterday. While the company’s earnings beat analysts’ estimates, its 2018 guidance seems to have spooked markets.
Inside Cliffs Natural Resources’ Solid 4Q16 Earnings, Big Stock Surge
Cliffs Natural Resources’ results for 4Q16 were hugely positive and beat the market expectations by a wide margin.
Falling Car Sales and Waning Trump Effect Spell Trouble for AKS
AK Steel (AKS) has been among the worst-performing steel stocks (MT) (STLD) in 2017 with year-to-date losses of more than 46% as of May 17.
AK Steel’s 1Q17 Earnings Call: What Really Spooked Investors
AK Steel expects its 2Q17 average selling prices to be “marginally higher” compared to 1Q17. However, AK Steel could witness higher costs in 2Q17.
Can ArcelorMittal’s 3Q17 Earnings Boost Steel Market Sentiments?
AK Steel (AKS), which released its earnings on October 31, fell 21.5% after its 3Q17 earnings release.
What Could Hamper the Momentum in US Steel Prices?
Due to a seasonal uptick in steel demand and better-than-expected demand from the construction sector, Chinese steel prices got a boost.
CLF Cautions: How Are Analysts Leading after the Recent Run-Up?
Cliff’s Natural Resources has long-term contracts with US steelmakers and is thus affected more by what’s happening in US steel than in seaborne iron ore.
Why ArcelorMittal Stock Is Popular among Analysts
On July 6, Macquarie initiated coverage on ArcelorMittal with a “outperform” rating and target price of 30 euros.
Nucor’s Strong Position in the Challenging Steel Market
The steel market has been challenging in 2015—prices crashed due to Chinese exports. But Nucor’s financial strength and high profit margins helped it cope.
What Might Cliffs’ Valuation Catalysts Be in 2017?
Cliffs Natural Resources (CLF) is trading at a forward EV-to-EBITDA multiple of 12.9x, compared to its trailing-five-year average of 9.6x.
Iron Ore and Steel Scrap Prices Diverge after Section 232 Tariffs
Iron ore and steel scrap are the key steelmaking raw materials. In the United States, steel prices and scrap prices tend to move in tandem.
What’s the Real Issue Plaguing the US Steel Industry?
The US steel industry (X) (AKS) (NUE) lists “unfairly traded steel products” as its biggest woe.
Must-know: Why steel companies are celebrating
While the Christmas season is still months away, steel companies have other reasons to celebrate. The steel sector has seen a lot of positive news over the past several months.
What to Watch for in U.S. Steel’s 4Q16 Earnings Call
During U.S. Steel’s 4Q16 earnings call, markets would expect more updates from the company regarding its 2017 coal contracts.
Wall Street’s Steel View: Which Steel Stocks Analysts Are Eyeing
U.S. Steel (X) has received a “buy” rating from 51% of its analysts, while 13% analyst recommend a “sell.”
Can ArcelorMittal match U.S. Steel Corporation’s performance?
U.S. Steel has almost identical problems as ArcelorMittal. Both had production through blast furnace routes, had high leverage ratios, and had their own iron ore mining.
US Steel Stocks Pop after China Tariff Scare
US steel stocks (XME) U.S. Steel Corporation (X) and AK Steel (AKS) are trading sharply higher today. Nucor (NUE) and Steel Dynamics (STLD) are also in the green.
Steel Companies Expect Strong Demand in 2018
Some analysts expect US steel demand to soften. The Section 232 tariffs have led to higher steel prices in the United States.
Why Most Analysts Have Rated Steel Dynamics as a ‘Buy’
Steel Dynamics has one of the most diversified end-market exposures compared to other steel companies.
What Can U.S. Steel Investors Expect in 2017?
U.S. Steel (X) and other steelmakers like AK Steel (AKS), Nucor (NUE), and Steel Dynamics (STLD) have seen significant upwards price movements over the last couple of months.
Must know: Steel companies are bracing for aluminum onslaught
According to estimates, producing aluminum auto bodies raises the price of vehicles by more than $1, 000 per unit. Regardless, it’s expected aluminum use in auto bodies will increase tenfold by 2025.
How Does Wall Street See Steel Dynamics as Steel Prices Plunge?
Steel Dynamics carries a one-year price target of $30.43, which represents a 29.5% upside over its closing price on September 16.
What to Expect from Cliffs Natural Resources’ 2Q17 Earnings
In this series, we’ll see what investors could expect from Cliffs Natural Resources’ (CLF) 2Q17 earnings report. CLF stock has gained 23% in the last 15 trading days.
Q4 Earnings: Can U.S. Steel Corporation Lift Sentiments?
U.S. Steel Corporation (X) is scheduled to release its fourth-quarter earnings results on January 30.
How Are Analysts Rating ArcelorMittal before Its 4Q16 Earnings?
ArcelorMittal (MT) has a mean one-year price target of $9.07. That represents a 14.5% upside compared to its closing price on February 3, 2017.
Is the Steel Industry Gaining Strength?
This year, steel companies have had a mixed performance on Wall Street. However, there are signs of a revival in the steel industry.
What’s the Upside and Downside to U.S. Steel’s 2017 Guidance?
U.S. Steel’s (X) guidance assumes constant commodity prices, which holds true for steel and raw material prices.
Better Days Await US Steel Producers in the Second Quarter
The rises in US steel producers’ first-quarter earnings weren’t commensurate with the sharp gains in spot steel prices.
Are Analysts Getting Wary of the Run-Up in US Steel and Cliffs?
After Trump’s election win, most analysts are turning optimistic on the US steel sector, given his stance on protectionism and infrastructure focus.
Why U.S. Steel’s 3Q16 Earnings Miss Is Not a Major Surprise
U.S. Steel’s 3Q16 earnings miss As discussed in the previous part, U.S. Steel Corporation’s (X) 3Q16 net profits fell well short of analysts’ expectations. U.S. Steel’s 3Q16 earnings miss triggered a major sell-off, resulting in it closing at $17.82 on November 2, 4.8% lower than its previous day’s closing. Nucor (NUE) also missed consensus earnings […]
Why steel companies’ share prices had a dream run
Towards the end of 2013, Goldman Sachs upgraded the U.S. steel industry to neutral. This reflected the resilience in the U.S. economy.
Steel Companies Expect Performances to Fall in 4Q16
Although steel companies’ performances could still fall in 4Q16 compared to the sequential quarter, they might improve in 1Q17.
NUE and X to Report Q1 Earnings: What Should You Watch?
The earnings season is in full swing. This week, Nucor (NYSE:NUE) and U.S. Steel Corporation (NYSE:X) will likely release their first-quarter earnings.
Valuation Catalysts for Cliffs Natural Resources in 2017
Cliffs Natural Resources (CLF) is trading at a forward EV-to-EBITDA multiple of 8.4x compared to its trailing five-year average of 9.8x.
Bridgewater Associates Opens Position in US Steel Corporation
In 4Q14, Bridgewater Associates started a position in US Steel Corporation (X). X accounted for 0.12% of the fund’s total fourth-quarter portfolio.
Could There Be More Upside to Cliffs Natural Resources’ Valuation?
For companies in cyclical industries such as steel and mining, the EV-to-EBITDA multiple is the preferred valuation metric.
Falling Steel Prices Overshadow U.S. Steel’s Bullish Drivers
The rally in steel prices, which was driven mainly by trade cases, is fading. Spot HRC prices have fallen more than $160 per ton from their June peak.
What Could Drive Cliffs’s Valuation in 2017?
Valuation multiples Valuation multiples are key metrics that investors should consider carefully. To compare a company’s valuation with its closest peers’, there are several valuation metrics you can use. For companies in cyclical industries such as steel (SLX) and mining, the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is the preferred valuation metric. […]
Falling Crude Prices Are the Biggest Headwind Facing U.S. Steel
Energy capex isn’t expected to turn around any time soon. There has to be a sustained upward movement in crude prices before energy companies will loosen their purse strings.
Higher Chinese Exports Could Spoil Steel Companies’ Party
Higher Chinese steel exports have been blamed for the global steel industry’s woes. However, we saw a steep fall in Chinese steel exports last year.
Could Steel Scrap Prices Follow Steel Prices Lower?
Steel scrap prices could follow steel prices lower. Steel mills might negotiate hard with scrap suppliers as steel prices pare some of their 2016 gains.
Understanding the Long-Term Impact of a Trump Presidency on Steel
In our view, the kind of trade protectionism Trump has expressed support of would only provide a short-term breather for the industry.
Steel Investors Are Most Bearish on These Stocks
on May 15, 2017, U.S. Steel’s (X) short interest ratio stood at 0.93, up from 0.81 on April 28.
Rising Coal Prices May Not Be Good News for U.S. Steel
Rising coking coal prices could lead to a higher input cost for U.S. Steel. It would be at a disadvantage compared to mini mills.
Is Wall Street Getting Bearish on US Steel Stocks?
US-based steel producer Nucor (NUE) is expected to post adjusted EBITDA of $3.6 billion this year, compared with $2.6 billion last year.
Why U.S. Steel’s Rally Might Not Be Over Yet
While US steel prices have been weak in the second half of the year for the last three consecutive years, there are no signs of a slowdown so far.
U.S. Steel Corporation or AK Steel: Which Stock Analysts Prefer
According to consensus estimates, U.S. Steel Corporation (X) carries a mean one-year price target of $27.27, which is a 5.1% upside over its August 29 closing price.
Why US Steel Production Outlook Bodes Well for Cleveland-Cliffs
US steel production is the key variable that drives US steelmakers’ (SLX) (XME) revenues.
U.S. Steel’s Q2 Earnings: What Should You Expect?
U.S. Steel’s Q2 earnings are scheduled to be released Thursday. Although the stock fell to its 52-week low in May, it has bounced back.
What Leading Indicators Tell Us about US Steel Demand
The construction sector is the largest steel user. In the residential construction sector, US housing starts rose to an 11-year high in May.
U.S. Steel’s Q2 Revenues Not Enough to Beat Estimates
U.S. Steel’s 2Q16 earnings came in better than what analysts were expecting. However, the company missed consensus revenue estimates.
Cleveland-Cliffs amid Changing US Steel Market Dynamics
In this series, we’ll gauge the direction that CLF stock could take in 2018. It underperformed most of its peers in 2017.
Despite Gloomy Outlook, It’s Not the End of Road for Steel Stocks
US steelmakers such as U.S. Steel Corporation (X), AK Steel (AKS), and Nucor (NUE) stand to gain from duties against imported steel products, as they help them protect their turf from foreign steelmakers.
Steel Industry’s Capacity Utilization Ratio Is At A 1-Year Low
The capacity utilization ratio is a key determinant of steel companies’ profitability. As a result, it’s a key metric that steel play investors should actively track.
Did Analysts Rate ArcelorMittal Favorably after Its Earnings?
Of the analysts surveyed by Thomson Reuters, 57% rated ArcelorMittal as a “buy,” one analyst rated the stock as a “sell,” and 28% rated it as a “hold.”
2Q16 Earnings Call: Will U.S. Steel Raise Its 2016 Guidance?
One would expect U.S. Steel to increase its 2016 guidance during its 2Q16 earnings call. However, U.S. Steel might be conservative.
AK Steel: Stacking Q4 Estimates Against Company Guidance
In this article, we’ll look at analysts’ estimate for AK Steel’s (AKS) fourth-quarter revenue and stack it against the company’s guidance.
US Steel Imports Fell: Don’t Celebrate Just Yet!
Preliminary data showed that US steel imports fell sharply in August after the spike in July. However, falling imports haven’t restored investor sentiments.
Understanding The Changing Dynamics Of US Steel Imports
The dynamics of US steel imports are changing. Europe apparently has replaced NAFTA as the biggest steel exporting region to the United States.
Key Chinese Real Estate Indicators Investors Should Track
Let’s look at some Chinese real estate indicators. In the first six months of 2015, construction was started on 674.79 million square meters in China, a year-over-year decline of 15.8%.
Why AK Steel Isn’t Popular among Analysts
Five analysts rated AK Steel stock as a “buy,” seven analysts rated it as a “hold,” and three analysts rated it as a “sell.”
U.S. Steel Corporation’s Cash Flows in the Second Quarter
Analysts polled by Thomson Reuters expect U.S. Steel Corporation to post free cash flows of $8 million in the second quarter.
AK Steel: Why It Isn’t the End of the Road Yet
AK Steel’s forward valuation looks attractive based on some metrics. The stock has the lowest forward price-to-sales and PE ratios.
Worthington Industries’ Revenue and Income Fell in Fiscal 2Q16
Worthington has a market cap of $1.7 billion. After the fiscal 2Q16 earnings report, it rose by 0.11% to close at ~$27.0 per share as of December 16.
Earnings Preview: Analyzing AK Steel’s 2Q17 Revenues
AK Steel is expected to post revenues of $1.55 billion in 2Q17, according to consensus estimates compiled by Thomson Reuters.
4Q15 Earnings Preview: What Analysts Expect from Steel Dynamics
Steel Dynamics is expected to release its 4Q15 earnings on January 25 after the markets close. Analysts expect Steel Dynamics to deliver EPS of $0.066 per share.
How Analysts Are Rating Steel Stocks Ahead of 4Q16 Announcements
Analysts’ ratings What a year 2016 was for steel stocks (XME). U.S. Steel Corporation (X) and AK Steel (AKS) rose more than 300%. With steel companies’ 4Q16 earnings announcements just around the corner, we should look at how analysts are rating stocks. Steel Dynamics has most “buy” recommendations According to consensus estimates compiled by Thomson […]
Steel Dynamics Is Optimistic about the US Steel Industry
Steel Dynamics (STLD) reported its 1Q17 earnings on April 19. The company reported EPS (earnings per share) of $0.82 during the quarter.
Analyzing U.S. Steel Corporation’s Cash Flows
U.S. Steel Corporation (X) posted negative free cash flows of $182 million in 1Q17. The company attributed negative cash flows to higher working capital.
AK Steel’s 1Q17 Earnings: What’s the Word on Wall Street?
In this article, we’ll see what analysts are projecting for AK Steel’s (AKS) 1Q17 earnings. AK Steel is scheduled to release its 1Q17 results on April 24, 2017.
Steel Import Penetration Remains at Elevated Levels
Let’s look at steel’s import penetration levels. Simply put, import penetration tells us how much of the domestic steel demand is met through imported steel.
Diving Deeper into US Steel Import Data in May
In May, HRC and HDG imports rose 18.1% and 4.4%, respectively—compared to April. CRC imports fell ~7% during this period.
Why US Steel Prices Might Not Recover Much in 2016
Bank of America expects spot HRC (hot-rolled coil) prices to rise to $455 per short ton in 2016.
How Do Analysts Rate Nucor This Earnings Season?
Of the 15 analysts surveyed by Thomson Reuters, ten recommended Nucor stock as a “buy” or some equivalent, while one analyst recommended a “sell.”
China’s Building Sales Improve in May, a Positive for Steel
In May, building sales in China increased by 3.1% year-over-year. This is the first time since December 2013 that building sales have increased on an annual basis.