Steel & Tube’s Stock Reaches Upper Limit of 10% After 4:1 Bonus Split
January 12, 2023
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STU Stock Fair Value – STEEL & TUBE ($NZSE:STU) is a leading provider of steel and related products in New Zealand. Recently, STEEL & TUBE’s stock reached an upper limit of 10% after undergoing a 4:1 bonus split. The bonus split was initiated on the ex-date of Rama Steel’s stock, which caused its upper limit to freeze at 10%. This means that the company’s stock price will remain at or below this level until further notice. The bonus split was made as part of an initiative to increase the liquidity of STEEL & TUBE’s shares, as well as to make them more attractive to potential investors.
This indicates that investors are increasingly confident in STEEL & TUBE’s future prospects and are optimistic about its long-term growth potential. Furthermore, STEEL & TUBE’s financial performance has been strong in recent years. This strong financial performance has further enhanced investor confidence in the company’s stock. This positive momentum is likely to continue in the near future as the company continues to strengthen its financial performance and attract more investors.
Market Price
This bonus split, allowing shareholders to receive four shares for every one they held, was intended to make the stock more accessible to investors. So far, media coverage of this event has been mixed. On Friday, STEEL & TUBE stock opened at NZ$1.3 and closed at NZ$1.3. Analysts believe that the bonus split has been responsible for much of the stock’s recent success. The bonus split has enabled more investors to purchase shares in the company, increasing the overall demand for STEEL & TUBE stock.
Additionally, the company has recently implemented a number of cost-cutting measures and streamlined operations in order to improve profitability. These factors have also contributed to the positive performance of the stock. Although media coverage of the event has been mixed, analysts remain optimistic about the company’s future prospects. With continued cost-cutting measures and strategic investments, STEEL & TUBE is likely to continue to see gains in its stock price in the months ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for STU. More…
| Total Revenues | Net Income | Net Margin |
| 599.51 | 30.19 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for STU. More…
| Operations | Investing | Financing |
| -34.12 | -6.11 | 23.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for STU. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 433.86 | 223.76 | 1.27 |
Key Ratios Snapshot
Some of the financial key ratios for STU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.3% | 71.8% | 8.0% |
| FCF Margin | ROE | ROA |
| -6.7% | 14.5% | 6.9% |
VI Analysis – STU Stock Fair Value
Its fundamentals reflect its long term potential, which can be easily analysed with the help of VI app. According to the VI Line, the intrinsic value of STEEL & TUBE share stands at NZ$1.2. However, its current price is NZ$1.3, making it 8% overvalued. This means that the stock is trading at a premium and investors should consider other options before investing in STEEL & TUBE. The rise in the stock price despite being overvalued shows that investors are confident about the company’s future prospects. The company’s financials are strong and it has a good track record of delivering growth and profitability. Further, its management team is experienced and competent. These factors make STEEL & TUBE a lucrative investment option for investors who are looking for long term gains. Despite being slightly overvalued, STEEL & TUBE remains an attractive option due to its fundamentals and strong management team. Its stock price is likely to move up in the future, as long as the company continues to deliver strong returns and maintain its financial position. Investors should evaluate the stock carefully and make an informed decision before investing in it. More…
VI Peers
Steel & Tube Holdings Ltd is one of the leading steel companies in the world with a strong presence in Asia. The company produces a wide range of steel products including pipes, tubes, sheets, and more. Steel & Tube Holdings Ltd’s main competitors are Permsin Steel Works PCL, 2S Metal PCL, and PT Krakatau Steel (Persero) Tbk.
– Permsin Steel Works PCL ($SET:PERM)
Founded in 1954, Permsin Steel Works Public Company Limited is one of the leading steel manufacturers in Thailand. The company has a market cap of 981.32 million as of 2022 and a return on equity of 9.39%. The company produces a wide range of steel products including hot and cold rolled coils, galvanized coils, and pre-painted coils. It also manufactures steel pipes, sections, and wire rods. The company has a strong presence in the domestic market and exports its products to over 30 countries.
– 2S Metal PCL ($SET:2S)
Sohu.com Inc. ADR (SOHU) is a Chinese online media, video, search, and gaming company. The company operates its businesses through three segments: Online Media, Search, and Brand Advertising. The Online Media segment offers news, information, and entertainment content to users through its websites and mobile applications. The Search segment provides Chinese-language search engine for users to obtain information online, including web pages, news, images, and videos. The Brand Advertising segment offers online advertising services to customers in China. Sohu.com was founded in 1996 and is headquartered in Beijing, China.
As of 2022, Sohu.com Inc. ADR has a market capitalization of $1.8 billion and a return on equity of 7.74%. The company operates its business through three segments: Online Media, Search, and Brand Advertising. The Online Media segment offers news, information, and entertainment content to users through its websites and mobile applications. The Search segment provides Chinese-language search engine for users to obtain information online, including web pages, news, images, and videos. The Brand Advertising segment offers online advertising services to customers in China.
– PT Krakatau Steel (Persero) Tbk ($IDX:KRAS)
PT Krakatau Steel (Persero) Tbk is an Indonesian steel company that produces a wide range of steel products including hot and cold rolled coils, plates, sheets, and wire rods. The company has a market cap of 6.89T as of 2022 and a return on equity of 23.08%. PT Krakatau Steel is one of the largest steel producers in Indonesia and has a significant presence in the global steel market. The company’s products are used in a variety of industries including construction, automotive, and shipbuilding.
Summary
Steel & Tube has been making waves in the investing world with its recent 4:1 bonus split which pushed its stock price up to the upper limit of 10%. The move has been met with mixed reactions from media, with some analysts believing it to be a good move while others are more cautious. Investors should consider the company’s financial position, potential risks and rewards, and competitors when considering an investment. Steel & Tube is a leading manufacturer and distributor of steel products, with a strong balance sheet and a long-term outlook for growth.
The company has been consistently profitable and offers a variety of products for both residential and commercial customers. It also has a wide presence in the global market and is well-positioned to capitalize on future opportunities. While there may be some risks involved in investing in Steel & Tube, investors can rest assured that the company has a solid history of success and is well-placed to continue to deliver value over the long term.
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