AK Steel Holdings Is A Strong Buy
AK Steel Holding Corporation (AKS) is an integrated producer of flat-rolled carbon, stainless and electrical steels and tubular products through its subsidiary, AK Steel Corporation (AK Steel). The Company operates approximately eight steelmaking and finishing plants, over two coke plants and approximately two tube manufacturing plants across states, which include Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia. These operations produce flat-rolled carbon, specialty stainless and electrical steels that it sells in sheet and strip form, and carbon and stainless steel that it finishes into welded steel tubing. The Company also produces metallurgical coal through its subsidiary, AK Coal Resources, Inc. (AK Coal). In addition, the Company operates trading companies in Mexico and Europe that buy and sell steel and steel products and other materials. It sells flat-rolled carbon steel products, consisting of coated, cold-rolled, and hot-rolled carbon steel products.
Recommendation: We continue with our STRONG BUY recommendation on AK Steel Holding Corporation for 2016-10-03. Based on the information we have gathered and our resulting research, we feel that AK Steel Holding Corporation has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Price Sales Ratio and Momentum.
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ValuEngine Forecast |
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|
Target |
Expected |
|
|---|---|---|
|
1-Month |
5.03 | 1.54% |
|
3-Month |
5.06 | 2.27% |
|
6-Month |
5.03 | 1.53% |
|
1-Year |
5.88 | 18.69% |
|
2-Year |
4.17 | -15.70% |
|
3-Year |
3.21 | -35.18% |
|
Valuation & Rankings |
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|
Valuation |
25.55% undervalued |
Valuation Rank |
 84 |
|
1-M Forecast Return |
1.54% |
1-M Forecast Return Rank |
100 |
|
12-M Return |
93.36% |
Momentum Rank |
94 |
|
Sharpe Ratio |
-0.09 |
Sharpe Ratio Rank |
39 |
|
5-Y Avg Annual Return |
-6.06% |
5-Y Avg Annual Rtn Rank |
36 |
|
Volatility |
64.15% |
Volatility Rank |
27 |
|
Expected EPS Growth |
11.90% |
EPS Growth Rank |
44 |
|
Market Cap (billions) |
0.88 |
Size Rank |
64 |
|
Trailing P/E Ratio |
11.79 |
Trailing P/E Rank |
86 |
|
Forward P/E Ratio |
10.53 |
Forward P/E Ratio Rank |
80 |
|
PEG Ratio |
0.99 |
PEG Ratio Rank |
43 |
|
Price/Sales |
0.14 |
Price/Sales Rank |
96 |
|
Market/Book |
n/a |
Market/Book Rank |
n/a |
|
Beta |
2.42 |
Beta Rank |
7 |
|
Alpha |
0.40 |
Alpha Rank |
91 |
Market Overview
|
Summary of VE Stock Universe |
|
|
Stocks Undervalued |
53.64% |
|
Stocks Overvalued |
46.36% |
|
Stocks Undervalued by 20% |
21.23% |
|
Stocks Overvalued by 20% |
14.59% |
Sector Overview
|
Sector |
Change |
MTD |
YTD |
Valuation |
Last 12-MReturn |
P/E Ratio |
|
Industrial Products |
-0.31% |
-0.28% |
18.30% |
6.22% overvalued |
15.90% |
24.19 |
|
Computer and Technology |
-0.10% |
-0.03% |
18.71% |
4.52% overvalued |
12.17% |
29.54 |
|
Basic Materials |
-0.63% |
-0.58% |
45.66% |
1.89% overvalued |
61.92% |
29.19 |
|
Multi-Sector Conglomerates |
-0.28% |
-0.27% |
7.82% |
1.61% overvalued |
4.69% |
20.97 |
|
Utilities |
-0.24% |
-0.20% |
11.39% |
1.54% overvalued |
15.52% |
22.17 |
|
Oils-Energy |
0.16% |
0.29% |
20.21% |
1.37% overvalued |
0.18% |
24.56 |
|
Consumer Staples |
-0.17% |
-0.14% |
10.95% |
1.07% overvalued |
13.92% |
23.88 |
|
Aerospace |
-0.27% |
-0.23% |
1.45% |
0.37% overvalued |
8.93% |
18.16 |
|
Finance |
-0.49% |
-0.41% |
7.20% |
1.52% undervalued |
6.61% |
16.65 |
|
Business Services |
0.31% |
0.45% |
14.98% |
1.86% undervalued |
2.59% |
24.96 |
|
Consumer Discretionary |
0.09% |
0.15% |
9.85% |
3.63% undervalued |
5.55% |
23.51 |
|
Auto-Tires-Trucks |
0.35% |
0.39% |
7.91% |
3.72% undervalued |
10.60% |
13.89 |
|
Transportation |
0.07% |
0.10% |
11.65% |
4.44% undervalued |
-9.38% |
15.98 |
|
Medical |
-0.11% |
0.05% |
2.58% |
4.81% undervalued |
-5.91% |
26.80 |
|
Construction |
-0.24% |
-0.11% |
31.02% |
6.16% undervalued |
16.04% |
19.95 |
|
Retail-Wholesale |
-0.08% |
0.03% |
0.35% |
6.77% undervalued |
-0.32% |
22.00 |
VALUATION WATCH: Overvalued stocks now make up 46.36% of our stocks assigned a valuation and 14.59% of those equities are calculated to be overvalued by 20% or more. Eight sectors are calculated to be overvalued.
Disclaimer: ValuEngine.com is an independent research ...
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