AK Steel Holding Corp

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AKS : NYSE : Basic Materials
$4.46 up 0.02 | 0.45%
Today's Range: 4.28 - 4.53
Avg. Daily Volume: 12,010,300
08/31/16 - 4:02 PM ET

Financial Analysis


AK STEEL HOLDING CORP's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. AK STEEL HOLDING CORP has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 21.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1492.21689.4
EBITDA ($mil)116.962.8
EBIT ($mil)62.67.1
Net Income ($mil)17.3-64.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)56.275.0
Total Assets ($mil)3918.34335.4
Total Debt ($mil)2078.12442.5
Equity ($mil)-680.2-865.9


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin12.07.48
EBITDA Margin7.833.71
Operating Margin4.20.42
Sales Turnover1.61.62
Return on Assets-3.44-8.39
Return on Equity0.00.0
Debt Q2 FY16 Q2 FY15
Current Ratio1.751.82
Debt/Capital1.491.55
Interest Expense41.443.5
Interest Coverage1.510.16


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)238.21177.81
Div / share0.00.0
EPS0.08-0.36
Book value / share-2.86-4.87
Institutional Own % n/a n/a
Avg Daily Volume1.2084217E71.3373051E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AKS NM Peers 321.84   AKS 2.61 Peers 13.42

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

AKS's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AKS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AKS 8.16 Peers 36.06   AKS NA Peers 0.83

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AKS is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKS NM Peers 1.85   AKS 62.14 Peers -140.31

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AKS's P/B is negative making this valuation measure meaningless.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AKS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AKS 0.18 Peers 3.58   AKS -10.93 Peers -11.69

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AKS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AKS significantly trails its peers on the basis of sales growth

 

 

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