Algoma Steel Group Inc. (ASTL) vs Friedman Industries Inc. (FRD)

Algoma Steel Group Inc. and Friedman Industries Inc. are both Steel companies. Algoma Steel Group Inc. is the larger, with a market value of $442.7M against $284.7M — 1.6× the size. Algoma Steel Group Inc. has negative trailing earnings, so its P/E is not meaningful; Friedman Industries Inc. trades at 10.2×. Friedman Industries Inc. grew revenue faster over the last twelve months: 61.8% against −34.4%. Friedman Industries Inc. has the higher net margin (3.59% vs −71.1%) and the higher return on invested capital (15.2% vs −72.5%). Both pay a dividend; Algoma Steel Group Inc. yields more (2.52% vs 0.48%). Across the 20 metrics below, Friedman Industries Inc. leads on 18 and Algoma Steel Group Inc. on 2.

Valuation

Metric ASTL FRD Steel median
P/E n/m 10.24 21.10
P/S 0.42 0.37 0.70
P/B 2.18 1.67 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA n/m 6.25 10.71
EV/Sales 0.97 0.36 0.85
Earnings yield (172.54%) 9.76% 4.56%
Free cash flow yield (55.91%) (2.62%) 0.00%

Profitability

Metric ASTL FRD Steel median
Gross margin (47.42%) 10.33% 13.91%
Operating margin (86.59%) 5.27% 4.77%
Net margin (71.10%) 3.59% 3.40%
Free cash flow margin (23.33%) (0.96%) 0.00%
Return on equity (138.17%) 17.90% 2.21%
Return on assets (43.83%) 9.10% 1.83%
Return on invested capital (72.46%) 15.24% 2.52%

Growth

Metric ASTL FRD Steel median
Revenue growth (TTM) (34.43%) 61.80% 11.33%
EPS growth (last fiscal year) (1,205.05%) 217.24% —
Revenue growth, 5-year CAGR (13.24%) 38.68% 6.73%
Net income growth, 5-year CAGR 0.00% 10.96% 0.00%

Health

Metric ASTL FRD Steel median
Debt to equity 3.12 0.02 0.22
Current ratio 2.49 2.90 2.58
Net debt to EBITDA (0.84) 0.04 0.10

Dividend

Metric ASTL FRD Steel median
Dividend yield 2.52% 0.48% 2.48%
Payout ratio 0.25 0.03 0.04

Size

Metric ASTL FRD Steel median
Market cap 442.72m 284.69m 1.46b

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