ALGOMA STEEL Reports Fourth Quarter Financial Results for FY2023
June 24, 2023
🌥️Earnings Overview
On June 22, 2023, ALGOMA STEEL ($NASDAQ:ASTL) reported their financial results for the fourth quarter of FY2023, which ended on that date. Total revenue decreased by 28.1%, reaching CAD 677.4 million compared to the same period in the previous year. Net income for the quarter was CAD -20.4 million, a drastic decrease from CAD 242.9 million earned in the fourth quarter of FY2022.
Stock Price
On Thursday, ALGOMA STEEL stock opened at $7.0 and closed at $7.0, a 9.1% drop from the previous closing price of 7.7. This has been a challenging year for ALGOMA STEEL, with the company reporting lower profits due to the global economic downturn, as well as increased competition in the steel sector. Despite the challenges, ALGOMA STEEL was able to maintain its commitment to innovation and research and development, helping to keep costs down. The company was also able to reduce debt levels, and increase efficiency in their operations.
ALGOMA STEEL is now focusing on improving their customer relations, in order to further develop their competitive advantage in the steel industry. It is hoped that this latest report will inspire investors to take another look at ALGOMA STEEL given the company’s resilience in the face of a tough economic environment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Algoma Steel. More…
| Total Revenues | Net Income | Net Margin |
| 2.78k | 298.5 | 8.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Algoma Steel. More…
| Operations | Investing | Financing |
| 177.3 | -333.5 | -569.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Algoma Steel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.46k | 993.4 | 14.12 |
Key Ratios Snapshot
Some of the financial key ratios for Algoma Steel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | – | 14.7% |
| FCF Margin | ROE | ROA |
| -5.6% | 17.4% | 10.4% |
Analysis
GoodWhale has conducted an analysis of ALGOMA STEEL‘s fundamentals and has concluded that it has a high health score of 8/10 with regard to its cashflows and debt. This suggests that the company is capable of sustaining future operations in times of crisis. Furthermore, based on our Star Chart, ALGOMA STEEL is classified as a ‘cow’, a type of company that pays out consistent and sustainable dividends. This makes it an attractive option for value-oriented investors who are looking for a steady income stream. In addition to its dividend strength, ALGOMA STEEL is strong in asset, and medium in dividend, growth, and profitability. This makes it appealing to a diverse set of investors, from those looking for a steady income to those seeking capital appreciation or high returns on their investments. More…
Summary
Investors should be wary of ALGOMA STEEL due to their reported financial results for the fourth quarter of FY2023, ending on June 22 of that year. The total revenue of the company had decreased by 28.1% to CAD 677.4 million and net income for the quarter was CAD -20.4 million, a sharp decline from the CAD 242.9 million in the same period in the previous year. This poor performance was reflected in the stock price which moved down on the same day. Therefore, investors should be cautious when considering investing in ALGOMA STEEL.
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