X Intrinsic Value Calculation – US Steel’s Share Price Surges Above $40 Following Reports of Multiple Bids
December 14, 2023
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United States Steel ($NYSE:X) Corporation (US Steel) has seen its share price surge above $40 following reports of multiple bidders offering more than $40 per share. It is the largest steel producer and one of the oldest and largest companies in the United States. The company produces a wide range of products, including flat-rolled and tubular steel products, carbon and stainless steel sheets, and automotive and energy products. The company has been riding high on increased demand for steel, especially from auto and construction industries.
The reports of multiple bidders offering more than $40 per share have come as a pleasant surprise to investors and are expected to further boost the company’s share price. US Steel has also been working to increase its production capacity, reduce costs and increase efficiency. With its increased production capacity, cost reduction efforts and efficiency initiatives, US Steel is well-positioned to benefit from future growth opportunities.
Market Price
The stock opened at $36.5 and closed at $38.6, a rise of 6.0% from the previous closing price of $36.4. Analysts have commented that the surge is a sign of renewed investor confidence in the company’s future prospects and its ability to compete in the steel industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for X. More…
| Total Revenues | Net Income | Net Margin |
| 18.25k | 1.15k | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for X. More…
| Operations | Investing | Financing |
| 2.47k | -2.55k | -169 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for X. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.39k | 9.3k | 49.34 |
Key Ratios Snapshot
Some of the financial key ratios for X are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.2% | 64.7% | 8.4% |
| FCF Margin | ROE | ROA |
| -0.6% | 8.8% | 4.7% |
Analysis – X Intrinsic Value Calculation
At GoodWhale, we have completed a financial analysis of UNITED STATES STEEL. Using our proprietary Valuation Line, we have calculated the intrinsic value of each share of UNITED STATES STEEL to be around $27.6. However, the stock is currently being traded at $38.6, which is overvalued by 39.9%. More…
Peers
United States Steel Corp, Cleveland-Cliffs Inc, Algoma Steel Group Inc, and Ternium SA are all steel companies that compete for market share. While U.S. Steel is the largest of the four, the other three are not far behind in terms of size and operations. All four companies have a long history in the steel industry and are well-positioned to compete for business in the coming years.
– Cleveland-Cliffs Inc ($NYSE:CLF)
Cleveland-Cliffs Inc is an American mining and natural resources company. The company is the largest producer of iron ore pellets in North America, and a major supplier of direct-reduced iron (DRI) globally. The company also produces other iron-related products, such as metallurgical coal and ferroalloys. It has operations in the United States, Canada, Brazil, and Australia.
Cleveland-Cliffs Inc has a market cap of 8.45B as of 2022. The company’s return on equity is 46.25%. Cleveland-Cliffs Inc is the largest producer of iron ore pellets in North America and a major supplier of direct-reduced iron globally. The company also produces other iron-related products, such as metallurgical coal and ferroalloys.
– Algoma Steel Group Inc ($TSX:ASTL)
Algoma Steel Group Inc is a Canadian steel company located in Sault Ste. Marie, Ontario. The company has a market cap of 1B as of 2022 and a return on equity of 57.58%. The company produces steel products for the construction, energy, manufacturing, and transportation industries.
– Ternium SA ($NYSE:TX)
Ternium SA is a leading steel producer in Latin America with operations in Mexico, Argentina, Chile, Colombia, Guatemala and the United States. The company has a market cap of 5.66B as of 2022 and a Return on Equity of 30.03%. Ternium is the largest integrated steel producer in Latin America and the third largest in the world, with a production capacity of approximately 21 million tons of crude steel per year. The company produces a wide range of steel products, including flat and long products, coated products, and specialty steels. Ternium’s products are used in a variety of industries, such as construction, automotive, appliances, packaging, and others.
Summary
United States Steel Corporation is a leading producer of steel in the United States. Recent reports have indicated that the company has received multiple bids above $40 a share, which has caused its stock price to move upwards. Analysts believe that the strong demand for US Steel is being driven by a recovery in the global economy and rising steel prices. Investors are advised to keep a close watch on the developments in the industry, as US Steel could be well-positioned to benefit from a rebound in the market.
Additionally, the company has been making strategic investments to improve its competitive position, which could further bolster its value.
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