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Algoma Steel Group Ord Shs T.ASTL

Alternate Symbol(s):  ASTL | ASTLW | T.ASTL.WT

Algoma Steel Group Inc. is a Canada-based integrated producer of hot and cold rolled steel products including sheet and plate. The Company delivers responsive, customer-driven product solutions for applications in the automotive, construction, energy, defense, and manufacturing sectors. It is a key supplier of steel products to customers in North America and is the producer of discrete plate products in Canada. Its plate products include AR225, Heat Treated Plate, AlgoLaser, AlgoGrip and The Heavies. Its sheet products include Hot Rolled Sheet - DSPC, Hot Rolled Sheet - 106'' Mill, AR200, Cold Rolled and Floor Plate. The Company has a raw steel production capacity of an estimated 2.8 million tons per year. Its Direct Strip Production Complex is a thin slab caster coupled with direct hot rolling in North America. In addition, its heat-treated plate facility provides a full range of heat-treated products for abrasion resistant, ballistic and other specialty plate applications.


TSX:ASTL - Post by User

Comment by stockfyon Nov 28, 2022 9:17am
303 Views
Post# 35133388

RE:ASTL: Its EV at C$9 is 1 times the adj. EBITDA !!!

RE:ASTL: Its EV at C$9 is 1 times the adj. EBITDA !!!Given that the fire is behind us and the repair has been largely completed, estimated adj. EBITDA for FY 2023 is about C$650-C$750 million.

Therefore, it's easy to calculate that ASTL's current Enterprise Value is only 1 times this year's est. adj. EBITDA.

Estimated adj. EBITDA for the first six months of FY 2023 was C$440 million:    

https://ir.algoma.com/news-releases/news-release-details/algoma-steel-group-reports-fiscal-2023-second-quarter-results


stockfy wrote:

ASTL must be the cheapest steelmaker now at C$9. Algoma's Enterprise Value now at C$9 is only 1 times the estimated adj. EBITDA for this year (FY 2023) while all the other steelmakers on the NYSE and Nasdaq trade from 5 to 14 their adj. EBITDA.

The recent fire that weighed on the production has been overplayed although it's an one-time event, and investors fail to realize all the positives including ASTL's strong profitability and insanely low multiples.

ASTL can go vertical at any time because the valuation gap is tremendous.




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