AK Steel Holding Corp

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AKS : NYSE : Basic Materials
$5.51 | %
Today's Range: 5.34 - 5.52
Avg. Daily Volume: 14,224,800
07/22/16 - 4:02 PM ET

Financial Analysis


AK STEEL HOLDING CORP's gross profit margin for the first quarter of its fiscal year 2016 has 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 0.61 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 decreased by 22.95% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1518.81750.9
EBITDA ($mil)101.789.2
EBIT ($mil)48.033.8
Net Income ($mil)-13.6-306.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)113.089.4
Total Assets ($mil)3987.34556.3
Total Debt ($mil)2336.42528.8
Equity ($mil)-990.5-805.6


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin10.889.05
EBITDA Margin6.695.09
Operating Margin3.161.93
Sales Turnover1.621.51
Return on Assets-5.42-6.95
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.761.87
Debt/Capital1.741.47
Interest Expense42.843.9
Interest Coverage1.120.77


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)178.38177.81
Div / share0.00.0
EPS-0.08-1.72
Book value / share-5.55-4.53
Institutional Own % n/a n/a
Avg Daily Volume1.3990215E77670330.0

Valuation


HOLD. 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 148.02   AKS 2.90 Peers 13.13

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 12.31 Peers 58.51   AKS NA Peers 2.49

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 1.99   AKS 33.34 Peers -163.46

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 0.15 Peers 3.67   AKS -6.00 Peers -15.31

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AKS has a sales growth rate that significantly exceeds its peers.

 

 

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