Alloy Steel International, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 75.
Our analysis is based on comparing Alloy Steel International, Inc. with the following peers – China Precision Steel, Inc., Friedman Industries, Incorporated, Highway Holdings Limited and Ampco-Pittsburgh Corporation (CPSL-US, FRD-US, HIHO-US and AP-US).
Alloy Steel International, Inc. has shown good performance overall, both over the last one year (at 75.29%) as well as over the last month (at 36.07%). Share price performance over the last month, though has been lower than that over the last year. But Alloy Steel International, Inc.’s stock has done better than its overall peer group whose performance was 4.08% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- Alloy Steel International, Inc. currently trades at a higher Price/Book ratio (1.10) than its peer median (0.84).
- We classify AYSI-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- AYSI-US has relatively high profit margins while operating with median asset turns.
- Changes in annual earnings are in line with its chosen peers but lags in terms of revenue, implying the company is cost conscious and selective about spending for growth.
- AYSI-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
- While AYSI-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- AYSI-US has the financial and operating capacity to borrow quickly.
- Our analysis rates Alloy Steel International, Inc. as UNDERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
AYSI-US‘s share price performance of 75.29% over the last 12 months is above peer median of -17.57%. The 30-day trend in its share price performance of 36.07% is also above the peer median of 4.08% suggesting that this company is a leading performer relative to its peers.
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Alloy Steel International, Inc.’s price of USD 1.49 is lower than CapitalCube’s implied price of USD 1.72. CapitalCube believes that at these levels, Alloy Steel International, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 0.75 and USD 1.83.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Alloy Steel International, Inc. manufactures and distributes Arcoplate, a wear-resistant continuous fused alloy wear plate produced through a patented process. The company was founded in September 2000 and is headquartered in Perth, Australia.
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