Daily Stock Analysis: Algoma Steel Group

Photo by Wance Paleri on Unsplash
 

Algoma Steel Group bears the ticker symbol ASTL, and this is my first mention of Algoma Steel Group for my new Viking Portfolio or any of my previous seven Dog of The Week Portfolios.

Algoma Steel Group Inc is a Canadian company that produces clean and consistent light gauge steel in North America, offering a range of hot and cold rolled steel sheet and plate products.

The firm operates in a single segment of basic steel production. Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from domestic sales.

Substantial revenue is generated from the sale of Steel sheets and strips.

Algoma Steel Group Inc. was founded in 1901 and is headquartered in Sault Ste. Marie, Canada. It became a publicly traded company as of October 21, 2021.

Three key data points gauge Algoma Steel Group:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

ASTL Price

Algoma’s price per share was $6.02 at Tuesday’s market close. And, in the past year, Algoma’s share price fell by $3.21 or nearly 35%.

If Algoma’s stock trades in the range of $5.00 to $7.50 this next year, its recent $6.02 share price might reach $6.50 by next year. My upside increase estimate of $0.48 is conjecture, the firm's price could bottom below $5.00 before recovering.
 

ASTL Dividends

Algoma Steel Group’s most recently declared a quarterly dividend of $0.05 per share, which equals $0.20 annually and casts an annual yield of 3.32%.
 

ASTL Returns

Adding the $0.20 annual estimated ASTL dividend to my one-year price upside estimate of $0.48 reveals a $0.68 potential gross gain per share.

At Tuesday’s $6.02 closing price, a little under $1000 would buy 166 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.06 per share.

Subtracting that maybe $0.06 brokerage cost from my estimated $0.68 gross gain makes a net gain of $0.62 X 166 shares = $102.92 for a 10.3% net gain including a 3.32% annual dividend yield.

In one year our $1K investment in shares of Algoma Steel Group would generate $33.20 in cash dividends. Of course, a single share of ASTL stock at Tuesday's $6.02 price is over 5 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy ASTL shares based on their dividends for the coming year 2023. The current dividend from $1K invested is 5.5 times more than Algoma Steel Group’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Algoma Steel Group. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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