Deutsche Bank upgraded the target on US Steel to $50 from $38, and maintained the Buy rating in the company.
Our view of the stock is Bearish with a score of 1.4 out of 10, where 0 is very bearish and 10 very bullish.
What to like:
Positive cash flow The company had positive total cash flow in the most recent four quarters. Positive free cash flow The company had positive total free cash flow in the most recent four quarters.
What to not like:
Low market capitalization This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future. Poor risk adjusted returns This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution. High volatility The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock. Below median total returns The company has under performed its peers on annual average total returns in the past 5 years. Below median dividend returns The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income. Overpriced on cashflow basis The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy. Poor return on equity The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers. Poor return on assets The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers. Highly leveraged The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively. Low Earnings Growth This stock has shown below median earnings growth in the previous 5 years compared to its sector Low Revenue Growth This stock has shown below median revenue growth in the previous 5 years compared to its sector Low Dividend Growth This stock has shown below median dividend growth in the previous 5 years compared to its sector.
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