Is there an oportunity in Steel?
Those companies (CSN, GOAU and USIM) are among the worst performing blue chips in the last 12 months. The sector is out of favor because of bad results.
But, even delivering about half the earnings show in past years, USIM5 is trading for a P/E ratio of 12,45. It's debt to equity ratio is of only 0,45. USIM also has a significant business in iron ore mining.
I don't like the steel business as a whole, because of the excess capacity buildup in recent years (mainly in China), but the discount offered today is tempting.
I have to study more this sector, but I think the probability of an oportunity there is high.
GOAU3 CSNA3 USIM5
P/Earnings 9,21 12,25 12,45
P/Equity 1,04 3,98 0,87
Debt/Equity 2,05 2,64 0,45
Efeitos no Brasil do cenário financeiro nos EUA
3 weeks ago
3 comments:
Maybe, but I also have to study more.
I like GGBR3, despite its huge debt.
What's worth noting is that GGBR3 has a great amount of yearly depreciation, about BRL 1.8 billion, or more. That's more than it invested in 2009/2010, so it may be a clue that its FCF could be high. A quick computation gives a FCF of about 2 billions a year, a yield of 8%. That's not bad, considering that now steel companies are not in a good momentum.
Usiminas planeja chegar a 2011 valendo 59 bilhões
And I plan to get to 2015 married with Scarlett Johansson...
They can't control that, so why don't they focus on operational instead?
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