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Steel works, blast furnaces & rolling & finishing mills company · TX · FY ends Mar · Revenue $485M · 1.53% margin · $7M FCF
$19.70
+$0.38 (+1.99%)
Price from 42 days ago
Operating margin is thin at 0.68%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 13.9% YoY. Margins deteriorated 4.1pp alongside, both lines moving the wrong way.
ROIC dropped from 15.00% to 1.81%, capital efficiency is deteriorating. Negative free cash flow of -$8M. The business is consuming cash, not generating it.
23.5x earnings, 18.4x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$485M
▼ -13.9% YoY
Net Income (TTM)
$6M
▼ -64.9% YoY
Op. Margin
1.53%
▼ -4.1pp YoY
ROIC
4.26%
▼ -13.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$7M
▼ -934.7% YoY
Op. Cash Flow (TTM)
$14M
▼ -188.6% YoY
Net Debt
$630K
Cash & Equiv.
$5M
5Y CAGR: +25.6%
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