Stelco Holdings Inc. (STLC:TSX) Analysts rate as a Buy, 12 Bullish Signals detected

STA Research
by: STA Research
Stelco Holdings Inc.

Based on the Stelco stock price forecasts from 9 analysts, the average analyst STLC stock price target is CAD 53.06 over the next 12 months. Stelco Holdings Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of STLC stock is Bullish, which is based on 12 positive signals and 3 negative signals. At the last closing, Stelco stock price was CAD 37.03Stelco stock price has changed by +0.08% over the past week, +5.49% over the past month and -22.58% over the last year.

Stelco Holdings Inc. engages in the production and sale of steel products in Canada, the United States, and internationally. It offers flat-rolled value-added steel, including coated, pre-painted, cold-rolled, and hot-rolled sheet products, as well as pig iron and metallurgical coke. The company sells its products to customers in the construction, automotive, energy, appliance, and pipe and tube industries, as well as to various steel service centers. Stelco Holdings Inc. was founded in 1910 and is headquartered in Hamilton, Canada.

What we like:

High market capitalization:

STLC stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced on cashflow basis:

Stelco stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

STLC stock price history shows that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

STLC stock price history shows that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

STLC stock price history shows that the company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the STLC stock news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

Stelco stock price had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Stelco stock price had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

Stelco stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth:

STLC stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth:

STLC stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

STLC stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns:

Stelco stock price forecats shows that the 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 Stelco stock 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:

Stelco stock has under-performed its peers on annual average total returns in the past 5 years.

 

Disclaimer

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