Report
Andrew Lane
EUR 100.00 For Business Accounts Only

AK Steel's profits will decline after 2018 as steel prices and light-vehicle production decline.

AK Steel reported soft second-quarter results, as the company was unable to achieve management's guidance for both adjusted EBITDA margins and shipment volumes. Shares traded sharply lower on the news. Having tempered our near-term profit outlook for no-moat AK Steel, our fair value estimate falls to $3.75 per share from $4.25. Although we've only modestly reduced our 2018 adjusted EBITDA forecast to $590 million from $612 million, the company's high financial leverage means that even a small cu...
Underlying
AK Steel Holding Corporation

AK Steel Holding is a producer of flat-rolled carbon, stainless and electrical steels products primarily for the automotive, infrastructure and manufacturing, and distributors and converters markets through its wholly-owned subsidiary, AK Steel Corporation. The company's other subsidiaries also provide customer solutions with carbon and stainless steel tubing products, solutions, tool design, hot- and cold-stamped steel components and assemblies. The company sells its carbon steel products mainly to customers in North America, and it sells its electrical and stainless steel products primarily in North America and Europe. The company also produces metallurgical coal through its AK Coal Resources, Inc. subsidiary.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Andrew Lane

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