ALGOMA STEEL Reports Profitable First Quarter of FY2024
August 17, 2023
☀️Earnings Overview
For the first quarter of Fiscal Year 2024 ending June 30, 2023, ALGOMA STEEL ($NASDAQ:ASTL) reported total revenue of CAD 827.2 million, a decrease of 11.4% compared to the same period in the prior year. Net income was CAD 130.9 million, a decrease of 56.6% compared to the prior year.
Market Price
As a result, the company’s stock opened at $7.1 and closed at $7.0, up by 1.6% from its last closing price of 6.8. ALGOMA STEEL is a Canadian steel producer that operates locations in Sault Ste. Marie, Ontario and Washington State, USA. It is a significant economic driver for Sault Ste. Marie and the surrounding region, as well as providing employment opportunities for the local area. As such, ALGOMA STEEL’s financial performance has a direct impact on the local economy. The company has made investments in its operations and workforce to boost efficiency and productivity, which is reflected in its improved performance this quarter.
Additionally, ALGOMA STEEL has implemented various strategies to improve customer satisfaction and ensure that its products meet the highest standards of quality. This is an encouraging sign for the company, indicating that investors are confident in its long-term prospects. With continued focus on product innovation and cost savings initiatives, ALGOMA STEEL is well-positioned for future success. 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 |
| 2.67k | 128 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Algoma Steel. More…
| Operations | Investing | Financing |
| 64.6 | -359.8 | -561.5 |
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 |
| 2.63k | 1.09k | 14.85 |
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% | – | 7.3% |
| FCF Margin | ROE | ROA |
| -11.0% | 8.1% | 4.6% |
Analysis
At GoodWhale, we recently conducted an analysis of ALGOMA STEEL’s wellbeing. According to our Risk Rating, ALGOMA STEEL is a high risk investment in terms of financial and business aspects. We have detected three risk warnings in the income sheet, balance sheet, and cash flow statement. To view our full report on ALGOMA STEEL, register at goodwhale.com and see how we determined that this company is a high risk investment. More…
Summary
Investors should take a closer look at Algoma Steel following the release of the company’s first quarter fiscal year 2024 results. Total revenue decreased by 11.4%, while net income fell by 56.6% compared to the same period the previous year. Given the sharp decrease in earnings, investors may want to assess the risk/reward potential of investing in Algoma Steel before making any decisions. Analysts should monitor the company’s financial performance over time and consider factors such as industry conditions, competitive pressures, and the company’s strategic initiatives when evaluating the potential of this investment.
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