Stelco Holdings Inc. (TSE:STLC) Shares Could Be 42% Below Their Intrinsic Value Estimate
Oct 27
Canadian (TSX) Steel Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies15
- 7D4.1%
- 3M-13.6%
- 1Y10.8%
- YTD-9.7%
The Steel industry is up 4.1% in the last week, with Stelco Holdings up 9.2%. In the same time, Colonial Coal International was down 8.3%. In the last 12 months, the industry was up 11%. In the next few years, earnings are forecast to decline by 4.4% annually.
Industry Valuation and Performance
Has the Canadian Steel Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | CA$4.7b | CA$4.1b | CA$496.5m | 7x | 9.5x | 1.1x |
| Wed, 27 Sep 2023 | CA$4.8b | CA$4.1b | CA$495.5m | 6.9x | 9.7x | 1.2x |
| Fri, 25 Aug 2023 | CA$4.8b | CA$4.1b | CA$485.2m | 7.5x | 9.9x | 1.2x |
| Sun, 23 Jul 2023 | CA$5.1b | CA$4.3b | CA$955.9m | 3.8x | 5.3x | 1.2x |
| Tue, 20 Jun 2023 | CA$5.1b | CA$4.3b | CA$953.9m | 4.8x | 5.3x | 1.2x |
| Thu, 18 May 2023 | CA$5.1b | CA$4.3b | CA$953.3m | 4.7x | 5.4x | 1.2x |
| Sat, 15 Apr 2023 | CA$5.5b | CA$4.5b | CA$1.2b | 5.6x | 4.4x | 1.2x |
| Mon, 13 Mar 2023 | CA$5.8b | CA$4.5b | CA$1.3b | 5.2x | 4.6x | 1.3x |
| Wed, 08 Feb 2023 | CA$5.8b | CA$5.1b | CA$1.9b | 6.6x | 3.1x | 1.1x |
| Fri, 06 Jan 2023 | CA$5.3b | CA$5.1b | CA$1.9b | 5.6x | 2.9x | 1x |
| Sun, 04 Dec 2022 | CA$5.3b | CA$5.1b | CA$1.9b | 6x | 2.9x | 1x |
| Tue, 01 Nov 2022 | CA$4.6b | CA$5.6b | CA$2.3b | 3.6x | 2x | 0.8x |
| Thu, 29 Sep 2022 | CA$4.6b | CA$5.6b | CA$2.3b | 3.8x | 2x | 0.8x |
| Sat, 27 Aug 2022 | CA$5.1b | CA$5.6b | CA$2.3b | 2.7x | 2.2x | 0.9x |
| Mon, 25 Jul 2022 | CA$4.8b | CA$5.5b | CA$2.2b | 4.2x | 2.2x | 0.9x |
| Wed, 22 Jun 2022 | CA$5.2b | CA$5.5b | CA$2.2b | 4.9x | 2.4x | 1x |
| Fri, 20 May 2022 | CA$5.5b | CA$5.5b | CA$2.2b | 4.4x | 2.5x | 1x |
| Sun, 17 Apr 2022 | CA$7.2b | CA$5.2b | CA$2.1b | 5.9x | 3.5x | 1.4x |
| Tue, 15 Mar 2022 | CA$6.8b | CA$5.2b | CA$2.1b | 5.1x | 3.3x | 1.3x |
| Thu, 10 Feb 2022 | CA$6.4b | CA$4.4b | CA$1.4b | 4.8x | 4.5x | 1.5x |
| Sat, 08 Jan 2022 | CA$6.3b | CA$4.4b | CA$1.4b | 4.6x | 4.4x | 1.4x |
| Mon, 06 Dec 2021 | CA$6.2b | CA$4.3b | CA$1.4b | 4.5x | 4.4x | 1.5x |
| Wed, 03 Nov 2021 | CA$6.3b | CA$3.1b | CA$647.4m | 6x | 9.8x | 2x |
| Fri, 01 Oct 2021 | CA$5.9b | CA$3.1b | CA$646.8m | 6.2x | 9.1x | 1.9x |
| Sun, 29 Aug 2021 | CA$7.2b | CA$3.1b | CA$642.0m | 6.4x | 11.3x | 2.3x |
| Mon, 05 Jul 2021 | CA$6.9b | CA$3.1b | CA$642.6m | 6.3x | 10.7x | 2.2x |
| Thu, 08 Apr 2021 | CA$5.5b | CA$2.5b | CA$158.0m | 8.3x | 34.8x | 2.2x |
| Sun, 10 Jan 2021 | CA$4.6b | CA$2.3b | -CA$29,902,844.57 | 9.8x | -152.3x | 2x |
Price to Earnings Ratio
-228.8x
Current Industry PE
- Investors are pessimistic on the Canadian Steel industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 9.5x which is higher than its 3-year average PE of -20.2x.
- The 3-year average PS ratio of 1.5x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- Total earnings for the Steel industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 21% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Comparison
How does Canadian Steel compare with similar industries?
| CA Market | -1.70% | |
| Materials | -1.65% | |
| Metals and Mining | -1.26% | |
| Steel | 4.09% | |
| Aluminum | 0% | |
| Gold | -0.13% | |
| Precious Metals and Minerals | -1.00% | |
| Silver | -1.62% | |
| Diversified Metals and Mining | -2.95% | |
| Copper | -4.04% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| STLC Stelco Holdings | CA$36.40 | 8.2% +CA$152.2m | 6.1% | PE7x | |
| LIF Labrador Iron Ore Royalty | CA$30.85 | 2.0% +CA$38.4m | 9.2% | PE9.4x | |
| DRX ADF Group | CA$5.00 | 1.0% +CA$1.6m | 184.1% | PE7.7x | |
| MOX Morien Resources | CA$0.53 | 6.0% +CA$1.5m | -26.4% | PS27.1x | |
| CFE Cartier Silver | CA$0.36 | 10.6% +CA$1.4m | -23.2% | PB1.5x |