What To Hold: 5 Hold-Rated Dividend Stocks BMR, DFT, ARR, MFA, SID
Companhia Siderurgica Nacional (NYSE: SID) shares currently have a dividend yield of 4.10%. Companhia Siderurgica Nacional operates as an integrated steel producer primarily in Brazil. The company principally produces carbon steel and various steel products for automotive, home appliance, packaging, construction, and steel processing industries. The average volume for Companhia Siderurgica Nacional has been 6,181,400 shares per day over the past 30 days. Companhia Siderurgica Nacional has a market cap of $8.4 billion and is part of the metals & mining industry. Shares are down 4% year-to-date as of the close of trading on Friday. TheStreet Ratings rates Companhia Siderurgica Nacional as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk. Highlights from the ratings report include:
- SID's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Metals & Mining industry and the overall market, COMPANHIA SIDERURGICA NACION's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- COMPANHIA SIDERURGICA NACION reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMPANHIA SIDERURGICA NACION swung to a loss, reporting -$0.14 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus -$0.14).
- The debt-to-equity ratio is very high at 3.67 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, SID has managed to keep a strong quick ratio of 2.09, which demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has decreased to $272.23 million or 32.78% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Companhia Siderurgica Nacional Ratings Report.
- Our dividend calendar.
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