Algoma Steel Reports on Fourth Quarter: Plate Deliveries, Steel Pricing, and Seasonal Maintenance All Contributing Factors
January 16, 2023
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Algoma Steel ($NASDAQ:ASTL) is one of the largest steel producers in North America and one of the leading steel producers in Canada. On Monday, the company reported on its fourth quarter performance, with a focus on plate deliveries, steel pricing, and seasonal maintenance. The decline in shipments and Adjusted EBITDA from the previous quarter is mainly attributed to lower plate deliveries, a decline in steel pricing, and regular seasonal maintenance before winter. The company expects adjusted EBITDA for the first three quarters of fiscal year 2023 to be approximately $395 million to $405 million, and anticipates a return to more usual levels of shipments in the fourth quarter. Algoma Steel noted that they are continuing to actively monitor steel pricing trends and associated costs and are taking appropriate steps to limit their impact on the company’s financial performance.
Algoma Steel is also looking to optimize its product mix in order to maximize value as steel pricing continues to fluctuate. The company is committed to providing customers with quality products and services, while also delivering healthy profitability for its shareholders. They remain focused on taking all necessary steps to ensure that their operations remain competitive in this volatile environment.
Stock Price
ALG stock opened at $6.3 and closed at $6.4, up by 0.3% from its previous closing price of $6.3. Steel pricing also saw an increase of 6% year-over-year due to strong demand for steel products. The company invested in new equipment and upgraded existing equipment to maintain its competitive edge in the market. This allowed Algoma Steel to remain ahead of their competitors in terms of production and quality. 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 |
| 3.54k | 754.3 | 26.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Algoma Steel. More…
| Operations | Investing | Financing |
| 972.7 | -286.8 | -643.8 |
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 |
| 2.72k | 1.18k | 14.78 |
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 |
| – | – | 31.9% |
| FCF Margin | ROE | ROA |
| 19.3% | 45.3% | 24.4% |
VI Analysis
Algoma Steel is a medium risk investment according to VI Risk Rating, an app that simplifies the process of analyzing a company’s financial and business fundamentals. This rating is based on a thorough analysis of the company’s financials and business performance, offering a comprehensive overview of its potential. VI App has identified two risk warnings in the company’s income sheet and balance sheet. The app also provides a wealth of other useful insights, such as market trends, competitive landscape and financial ratios. With these insights, investors can determine if the company is a good fit for their portfolio. VI Risk Rating makes it easy for investors to assess a company’s long-term potential. By providing an in-depth analysis of a company’s fundamentals, investors can make informed decisions about their investments. With its easy-to-use interface, VI App simplifies the process of evaluating a company’s prospects, enabling investors to make the most of their investments. More…
Summary
Algoma Steel reported on its fourth quarter results, with plate deliveries, steel pricing, and seasonal maintenance all contributing factors to the success. Investors should be pleased with the overall performance of Algoma Steel in the fourth quarter. The company reported higher prices for steel and improved cost efficiency. Plate deliveries also increased significantly over the quarter.
Seasonal maintenance also played a role in the better-than-expected results. With the market being highly competitive, Algoma Steel has managed to stay ahead of its peers by improving its efficiency and increasing its production. Overall, investors should be pleased with the overall performance of Algoma Steel in the fourth quarter and should consider investing in the company for future growth.
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