NEW YORK (TheStreet) -- AK Steel (AKS) shares are up 7% to $6.57 in early market trading on Friday after the steel producer announced that the U.S. International Trade Commission had reached an affirmative 4-1 decision that imposed an antidumping order on steel imports from six different countries.
The company filed a motion with the commission in September 2013, charging that unfairly traded non-oriented electrical steel (NOES) imports from China, Germany, Japan, South Korea, Sweden and Taiwan was harming the domestic NOES market.
The countries named in the decision will now have to pay anti-dumping duties, while imports from China and Taiwan face additional countervailing duty orders as a result of the commission's decision.
TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for AK STEEL HOLDING CORP is currently extremely low, coming in at 12.65%. Regardless of AKS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AKS's net profit margin of -0.45% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly increased by 58.47% to -$49.50 million when compared to the same quarter last year. In addition, AK STEEL HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of -41.41%.
- This stock has increased by 26.80% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AKS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- AK STEEL HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AK STEEL HOLDING CORP continued to lose money by earning -$0.34 versus -$9.10 in the prior year. This year, the market expects an improvement in earnings (-$0.24 versus -$0.34).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 77.3% when compared to the same quarter one year prior, rising from -$31.70 million to -$7.20 million.
- You can view the full analysis from the report here: AKS Ratings Report