AK Steel Holding Corp

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AKS : NYSE : Basic Materials
$9.28 -0.24 | -2.5%
Today's Range: 9.07 - 9.67
Avg. Daily Volume: 2.32446E7
01/23/17 - 3:59 PM ET

Financial Analysis


AK STEEL HOLDING CORP's gross profit margin for the third 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 0.58 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 26.36% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1452.91709.9
EBITDA ($mil)184.5135.7
EBIT ($mil)130.880.2
Net Income ($mil)50.96.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)57.590.0
Total Assets ($mil)3920.84250.3
Total Debt ($mil)2000.22386.3
Equity ($mil)-646.6-878.1


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin18.211.78
EBITDA Margin12.697.93
Operating Margin9.04.69
Sales Turnover1.531.68
Return on Assets-2.31-8.23
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.821.73
Debt/Capital1.481.58
Interest Expense40.343.0
Interest Coverage3.251.87


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)238.27177.85
Div / share0.00.0
EPS0.210.04
Book value / share-2.71-4.94
Institutional Own % n/a n/a
Avg Daily Volume2.3095902E71.2381485E7

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. 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 487.40   AKS 7.87 Peers 11.83

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 14.42 Peers 27.40   AKS NA Peers 1.02

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AKS is trading at a premium 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 2.02   AKS 69.04 Peers -45.34

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 0.38 Peers 3.18   AKS -15.97 Peers -10.69

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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