Is Algoma Steel Stock a Good Investment?
Algoma Steel Investment Advice | ASTLW |
- Examine Algoma Steel's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Algoma Steel's leadership team and their track record. Good management can help Algoma Steel navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact Algoma Steel's business and its evolving consumer preferences.
- Compare Algoma Steel's performance and market position to its competitors. Analyze how Algoma Steel is positioned in terms of product offerings, innovation, and market share.
- Check if Algoma Steel pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Algoma Steel's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Algoma Steel Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Algoma Steel Group is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Dangerous | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Algoma Steel Stock
Researching Algoma Steel's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company recorded a loss per share of 0.62. Algoma Steel Group had not issued any dividends in recent years.
To determine if Algoma Steel is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Algoma Steel's research are outlined below:
| Algoma Steel Group is way too risky over 90 days horizon | |
| Algoma Steel Group may become a speculative penny stock | |
| Algoma Steel Group appears to be risky and price may revert if volatility continues | |
| Algoma Steel Group has high likelihood to experience some financial distress in the next 2 years |
Algoma Steel Quarterly Accounts Payable |
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Algoma Steel's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.05 | |
| Return On Capital Employed | 0.07 | 0.14 | |
| Return On Assets | 0.04 | 0.05 | |
| Return On Equity | 0.07 | 0.07 |
Determining Algoma Steel's profitability involves analyzing its financial statements and using various financial metrics to determine if Algoma Steel is a good buy. For example, gross profit margin measures Algoma Steel's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Algoma Steel's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Algoma Steel's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Algoma Steel Group. Check Algoma Steel's Beneish M Score to see the likelihood of Algoma Steel's management manipulating its earnings.
Evaluate Algoma Steel's management efficiency
The company has return on total asset (ROA) of (0.0352) % which means that it has lost $0.0352 on every $100 spent on assets. This is way below average. Similarly, it shows a return on equity (ROE) of (0.104) %, meaning that it generated substantial loss on money invested by shareholders. Algoma Steel's management efficiency ratios could be used to measure how well Algoma Steel manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to 0.05 in 2024. Return On Capital Employed is likely to climb to 0.14 in 2024. At this time, Algoma Steel's Non Currrent Assets Other are fairly stable compared to the past year. Return On Tangible Assets is likely to climb to 0.05 in 2024, whereas Non Current Assets Total are likely to drop slightly above 842.5 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.86 | 14.55 | |
| Tangible Book Value Per Share | 13.85 | 14.55 | |
| Enterprise Value Over EBITDA | 0.92 | 0.97 | |
| Price Book Value Ratio | 0.14 | 0.13 | |
| Enterprise Value Multiple | 0.92 | 0.97 | |
| Price Fair Value | 0.14 | 0.13 | |
| Enterprise Value | 260.6 M | 345 M |
The decision-making processes within Algoma Steel are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.493 |
Basic technical analysis of Algoma Stock
As of the 17th of November 2024, Algoma Steel shows the mean deviation of 3.81, and Risk Adjusted Performance of 0.1064. Algoma Steel Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Algoma Steel Group mean deviation, information ratio, as well as the relationship between the Information Ratio and downside variance to decide if Algoma Steel Group is priced correctly, providing market reflects its regular price of 1.96 per share. Please also double-check Algoma Steel Group total risk alpha, which is currently at (0) to validate the company can sustain itself at a future point.Understand Algoma Steel's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Algoma Steel's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1064 | |||
| Market Risk Adjusted Performance | 0.3839 | |||
| Mean Deviation | 3.81 | |||
| Semi Deviation | 4.03 | |||
| Downside Deviation | 4.87 | |||
| Coefficient Of Variation | 770.27 | |||
| Standard Deviation | 5.2 | |||
| Variance | 27.05 | |||
| Information Ratio | 0.1093 | |||
| Jensen Alpha | 0.4929 | |||
| Total Risk Alpha | (0) | |||
| Sortino Ratio | 0.1166 | |||
| Treynor Ratio | 0.3739 | |||
| Maximum Drawdown | 28.47 | |||
| Value At Risk | (7.91) | |||
| Potential Upside | 8.24 | |||
| Downside Variance | 23.75 | |||
| Semi Variance | 16.22 | |||
| Expected Short fall | (4.72) | |||
| Skewness | 0.4326 | |||
| Kurtosis | 1.85 |
| Risk Adjusted Performance | 0.1064 | |||
| Market Risk Adjusted Performance | 0.3839 | |||
| Mean Deviation | 3.81 | |||
| Semi Deviation | 4.03 | |||
| Downside Deviation | 4.87 | |||
| Coefficient Of Variation | 770.27 | |||
| Standard Deviation | 5.2 | |||
| Variance | 27.05 | |||
| Information Ratio | 0.1093 | |||
| Jensen Alpha | 0.4929 | |||
| Total Risk Alpha | (0) | |||
| Sortino Ratio | 0.1166 | |||
| Treynor Ratio | 0.3739 | |||
| Maximum Drawdown | 28.47 | |||
| Value At Risk | (7.91) | |||
| Potential Upside | 8.24 | |||
| Downside Variance | 23.75 | |||
| Semi Variance | 16.22 | |||
| Expected Short fall | (4.72) | |||
| Skewness | 0.4326 | |||
| Kurtosis | 1.85 |
Consider Algoma Steel's intraday indicators
Algoma Steel intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Algoma Steel stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Algoma Steel time-series forecasting models is one of many Algoma Steel's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Algoma Steel's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Algoma Stock media impact
Far too much social signal, news, headlines, and media speculation about Algoma Steel that are available to investors today. That information is available publicly through Algoma media outlets and privately through word of mouth or via Algoma internal channels. However, regardless of the origin, that massive amount of Algoma data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Algoma Steel news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Algoma Steel relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Algoma Steel's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Algoma Steel alpha.
Algoma Steel Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Algoma Steel can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Algoma Steel Corporate Management
| Rory Brandow | Vice Sales | Profile | |
| Brenda Stenta | Manager Branding | Profile | |
| Rajat Marwah | Chief Officer | Profile | |
| Mike Panzeri | Senior Production | Profile | |
| Michael Moraca | Treasurer Officer | Profile | |
| Danielle Baker | Chief Officer | Profile |
Already Invested in Algoma Steel Group?
The danger of trading Algoma Steel Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Algoma Steel is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Algoma Steel. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Algoma Steel Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Algoma Stock Analysis
When running Algoma Steel's price analysis, check to measure Algoma Steel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Algoma Steel is operating at the current time. Most of Algoma Steel's value examination focuses on studying past and present price action to predict the probability of Algoma Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Algoma Steel's price. Additionally, you may evaluate how the addition of Algoma Steel to your portfolios can decrease your overall portfolio volatility.