Middling 4Q Results Send AK Steel Shares Sharply Lower; FVE Lowered To $3.75 per Share
We've reduced our fair value estimate for AK Steel to $3.75 per share from $4.00 due to a slightly lower long-term profit outlook. Our no-moat rating is unchanged.We remain concerned that U.S. light vehicle sales peaked in 2016 at 17.5 million units. The Morningstar Industrials team forecasts further declines of 3%, 4%, and 7% in 2018, 2019, and 2020, respectively, before positive growth is restored in 2021. AK Steel has more leverage to U.S. automotive production than any other steelmaker we c...
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.