Stelco Holdings Inc
TSX:STLC

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Stelco Holdings Inc Logo
Stelco Holdings Inc
TSX:STLC
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Price: 68.14 CAD -0.41% Market Closed
Market Cap: 3.7B CAD
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Intrinsic Value

The intrinsic value of one STLC stock under the Base Case scenario is 47.59 CAD. Compared to the current market price of 68.14 CAD, Stelco Holdings Inc is Overvalued by 30%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

STLC Intrinsic Value
47.59 CAD
Overvaluation 30%
Intrinsic Value
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Stelco Holdings Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Stelco Holdings Inc

Current Assets 1.7B
Cash & Short-Term Investments 657m
Receivables 219m
Other Current Assets 788m
Non-Current Assets 1.4B
Long-Term Investments 19m
PP&E 1.3B
Intangibles 14m
Other Non-Current Assets 75m
Current Liabilities 900m
Accounts Payable 318m
Accrued Liabilities 43m
Other Current Liabilities 539m
Non-Current Liabilities 838m
Long-Term Debt 31m
Other Non-Current Liabilities 807m
Efficiency

Earnings Waterfall
Stelco Holdings Inc

Revenue
2.9B CAD
Cost of Revenue
-2.4B CAD
Gross Profit
415m CAD
Operating Expenses
-68m CAD
Operating Income
347m CAD
Other Expenses
-174m CAD
Net Income
173m CAD

Free Cash Flow Analysis
Stelco Holdings Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Stelco showcased a robust first quarter in 2024, highlighting a 200% increase in adjusted EBITDA to $153 million and an impressive 22% rise in revenue. This was driven by favorable market conditions and effective cost controls. The company maintained its industry-leading adjusted EBITDA margin of 21%. Stelco also declared a $0.50 per share dividend and repurchased 162,000 shares. The company's strong financial position, with $645 million in cash and no borrowings, positions it well for future growth. Looking ahead, Stelco anticipates shipping 625,000 to 650,000 net tons in Q2, continuing to leverage market stability and operational efficiency.

What is Earnings Call?
Fundamental Scores

STLC Profitability Score
Profitability Due Diligence

Stelco Holdings Inc's profitability score is 67/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Exceptional 3-Year Average ROIC
Positive Free Cash Flow
Positive Operating Income
67/100
Profitability
Score

Stelco Holdings Inc's profitability score is 67/100. The higher the profitability score, the more profitable the company is.

STLC Solvency Score
Solvency Due Diligence

Stelco Holdings Inc's solvency score is 62/100. The higher the solvency score, the more solvent the company is.

Negative Net Debt
Low D/E
Short-Term Solvency
Long-Term Solvency
62/100
Solvency
Score

Stelco Holdings Inc's solvency score is 62/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

STLC Price Targets Summary
Stelco Holdings Inc

Wall Street analysts forecast STLC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for STLC is 71.4 CAD with a low forecast of 70.7 CAD and a high forecast of 73.5 CAD.

Lowest
Price Target
70.7 CAD
4% Upside
Average
Price Target
71.4 CAD
5% Upside
Highest
Price Target
73.5 CAD
8% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Safe
0
25
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100
Shareholder Yield

Current shareholder yield for STLC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Profile

Stelco Holdings Inc Logo
Stelco Holdings Inc

Country

Canada

Industry

Metals & Mining

Market Cap

3.7B CAD

Dividend Yield

3.8%

Description

Stelco Holdings, Inc. engages in the production and sale of steel products. The company is headquartered in Hamilton Ontario, Ontario and currently employs 2,285 full-time employees. The company went IPO on 2017-11-03. The firm owns and operates technologically advanced integrated steelmaking facilities in North America. The firm produces flat-rolled value-added steels, including coated, pre-painted, cold rolled full hard, fully processed cold-rolled sheet and hot-rolled sheet products, as well as pig iron and metallurgical coke. The company also produces with gauge, crown, and shape control, as well as uniformity through-coil mechanical properties. The firm's steel products are supplied to customers in the steel service centre, construction, automotive, energy, appliance, and pipe and tube industries across Canada and the United States. The firm operates from two facilities: Lake Erie Works (LEW) near Nanticoke, Ontario and Hamilton Works (HW) in Hamilton, Ontario.

Contact

ONTARIO
Hamilton Ontario
386 Wilcox St
+19055774434.0
www.stelco.com

IPO

2017-11-03

Employees

2 285

Officers

CEO & Executive Chairman
Mr. Alan Kestenbaum
Chief Financial Officer
Mr. Paul D. Scherzer
Chief Operating Officer
Mr. Sujit Sanyal
General Counsel & Corporate Secretary
Mr. Paul Simon
Vice President of Sales
Mr. Greg Anderson
Chief Restructuring Officer
Mr. William E. Aziz C.A., C.P.A., F.C.A., FCPA, H.B.A.
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Vice President of Corporate Affairs
Trevor Harris
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See Also

Discover More
What is the Intrinsic Value of one STLC stock?

The intrinsic value of one STLC stock under the Base Case scenario is 47.59 CAD.

Is STLC stock undervalued or overvalued?

Compared to the current market price of 68.14 CAD, Stelco Holdings Inc is Overvalued by 30%.

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