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Company Analysis ---United States Steel Corp.

Company Analysis ---United States Steel Corp. Hang Gui Xi Xia Ying Du. Introduction of USS. Steel producer World’s tenth largest by sales Found in 1901 42000 employees Market cap: 3.82 Billion Traded as NYSE: X. USS Historical Prices. Comparison with STLD. Us steel corp .

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Company Analysis ---United States Steel Corp.

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  1. Company Analysis---United States Steel Corp. Hang Gui Xi Xia Ying Du

  2. Introduction of USS Steel producer World’s tenth largest by sales Found in 1901 42000 employees Market cap: 3.82 Billion Traded as NYSE: X

  3. USS Historical Prices

  4. Comparison with STLD Us steel corp. Steel dynamics, inc. • Stock Price: 26.14 • Shares: 144.00M • AvgVol: 15.09M • Market-Cap: 3.76B • P/E=N/A • EPS=-0.86 • Dividend: 0.05 • Dividend Yield=0.77% • Beta=2.43 • Stock Price: 13.49 • Shares: 218.69M • AvgVol: 4,60M • Market-Cap: 2.95B • P/E=12.00 • EPS=1.13 • Dividend: 0.10 • Dividend Yield=2.97% • Beta=1.86

  5. STLD Historical Prices

  6. Historical Prices Comparison

  7. Comparison with STLD Us steel corp. Steel dynamics, inc. • Cash Ratio=18.37% • Current Ratio=1.69 • ROE=-12.52% • Profit Margin=-2.77% • Total Asset Turnover=1.13 • Equity Multiplier=3.99 • Cash Ratio=33.23% • Current Ratio=3.56 • ROE=6.72% • Profit Margin=2.23% • Total asset Turnover=1.13 • Equity Multiplier=2.67

  8. US Treasury Bonds Rates

  9. S&P 500 Performance

  10. Capital Asset Pricing Model Us steel corp. Steel dynamics, inc. • Rf=1%(6-Month T-Bill) • β=2.43 • E(Rm)=2.86%(S&P500) • E(Ri)=Rf+β(E(Rm)-Rf)=5.52% • Rf=1%(6-Month T-Bill) • β=1.86 • E(Rm)=2.86%(S&P500) • E(Ri)=Rf+β(E(Rm)-Rf)=4.46%

  11. Gordon Model Us steel corp. Steel dynamics, inc. • D=0.05 • r=5.52% • Assume g=0 • P=D1/(r-g)=0.96 • D=0.10 • r=4.46% • Assume g=0 • P=D1/r-g=2.24

  12. Comparison with STLD • US Steel Corp. performs much worse than Steel Dynamics Inc. in all aspects • Losing money • Higher risk • Pays fewer dividend • Worse performance of stocks • Not tend to be better

  13. Overall Steel & Iron Industry Market Capitalization: 792B Price / Earnings: 14.8 Price / Book: 2.0 Net Profit Margin: 5.1% Return on Equity: 8.9% Total Debt / Equity: 103.6 Dividend Yield: 2.2%

  14. Comparison with Industry Us steel corp. Steel & Iron Industry • Price / Earnings: N/A • Profit Margin: -2.8% • Return on Equity: -12.5% • Dividend Yield: 0.77% • Price / Earnings: 14.8 • Profit Margin: 5.1% • Return on Equity: 8.9% • Dividend Yield: 2.2% • US Steel Corp.does not perform as well as the industry as a whole

  15. Comparison with Market

  16. Others Considerations Bad economic environment all over the world Demand of iron and steel drops Prices of resources increases Labor costs in the United States Competitions from foreign countries

  17. Conclusion United States Steel Corporation(NYSE: X ) is not a good stock to invest

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