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Usinas Siderurgicas de Minas (USNZY)
OTHER OTC:USNZY
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Usiminas
(OTC:USNZY)
Rating:60Neutral
Price Target:―
Usiminas (USNZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend Yield4.81%
Average Volume (3M)4.33K
Price to Earnings (P/E)50.5
Beta (1Y)0.70
Revenue Growth-12.27%
EPS Growth-87.71%
CountryUS
Employees51,182
SectorBasic Materials
Sector Strength60
IndustrySteel
Share Statistics
EPS (TTM)0.04
Shares Outstanding547,752,000
10 Day Avg. Volume12,991
30 Day Avg. Volume4,330
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.31
Price to Sales (P/S)0.00
P/FCF Ratio-18.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Usiminas Business Overview & Revenue Model
Company DescriptionUsinas Siderúrgicas de Minas Gerais S.A. manufactures and markets flat steel products in Brazil and internationally. The company operates through four segments: Mining and Logistics, Steel Metallurgy, Steel Transformation, and Capital Assets. It extracts and process iron ore, such as pellet and sinter feed and, granulated iron ore; develops steel product solutions; and operates as a distribution center and trading company. The company manufactures and installs equipment for various industries; and engages in the provision of services related to road cargo transportation. It also offers stamped steel parts for the automobile industry; and products for the construction and capital goods industry, as well as engages in logistics business and produces hot-rolled galvanized steel sheets and coils. In addition, the company provides technology transfer services for steel industry; project management and services for civil construction and capital goods industry; road transportation of flat steel; hot-dip galvanizing services; and texturing and chrome plating of cylinders. Usinas Siderúrgicas de Minas Gerais S.A. was founded in 1950 and is headquartered in Belo Horizonte, Brazil.
How the Company Makes MoneyUsiminas generates revenue primarily through the production and sale of steel products, such as hot and cold rolled sheets, galvanized sheets, and heavy plates. The company's revenue model is diversified across several segments: mining, which involves the extraction and sale of iron ore, a crucial raw material for steel production; steel manufacturing, which is the core of its business; and steel transformation, where products are customized to meet specific client requirements. Additionally, Usiminas benefits from its capital goods segment that provides equipment and technology solutions, and logistics operations that optimize the distribution and delivery of its products. Strategic partnerships and long-term contracts with national and international clients in key sectors like automotive and construction further bolster its revenue streams.
Usiminas Financial Statement Overview
Summary
Usiminas is experiencing challenges in revenue growth and profitability, with declining margins and recent losses. Despite a strong balance sheet with a healthy equity ratio and manageable debt levels, cash flow inconsistencies highlight potential liquidity concerns.Income Statement
Usiminas has experienced declining revenues and profitability over recent years. The gross profit margin has decreased significantly, from 34.7% in 2021 to 6.4% in 2024. Net income turned negative in 2024, leading to a negative net profit margin of -0.56%. The EBIT and EBITDA margins have also contracted sharply. The revenue growth rate has been negative for the last two years, indicating challenges in maintaining top-line growth. These factors reflect a concerning trend in income statement performance.45
Neutral
Balance Sheet
The balance sheet shows a solid equity base, with an equity ratio of approximately 59.9% in 2024. The debt-to-equity ratio remains manageable at around 0.32, though it has increased slightly over recent years. Return on equity (ROE) was significantly negative in 2024 due to the net loss, but the company maintains a strong cash position, which provides some financial stability. Overall, the balance sheet reflects moderate stability with a need to address profitability to improve returns.70
Positive
Cash Flow
Usiminas's cash flow has been inconsistent, with free cash flow turning negative in recent years. The free cash flow growth rate was negative in 2024, and the operating cash flow to net income ratio is distorted due to a negative net income. While operating cash flow remains positive, the company's ability to generate free cash flow sustainably is in question. These factors reflect mixed cash flow performance, highlighting potential liquidity concerns.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 26.50B | 25.87B | 27.64B | 32.47B | 33.74B | 16.09B | Gross Profit |
| 2.02B | 1.66B | 1.79B | 5.68B | 11.27B | 3.26B | EBIT |
| 652.32M | 499.58M | 799.44M | 5.24B | 11.49B | 1.33B | EBITDA |
| 2.12B | 1.81B | 2.92B | 4.77B | 12.25B | 3.77B | Net Income Common Stockholders |
| 140.53M | -145.95M | 1.39B | 1.62B | 9.07B | 1.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.56B | 5.95B | 6.01B | 5.07B | 7.02B | 4.87B | Total Assets |
| 40.74B | 39.87B | 40.16B | 40.00B | 39.48B | 29.95B | Total Debt |
| 8.64B | 7.76B | 7.60B | 6.32B | 6.38B | 6.03B | Net Debt |
| 2.86B | 2.56B | 2.95B | 3.40B | 41.08M | 2.77B | Total Liabilities |
| 13.48B | 13.19B | 13.61B | 14.11B | 15.12B | 13.11B | Stockholders Equity |
| 24.43B | 23.88B | 23.86B | 23.16B | 21.75B | 14.87B |
| Cash Flow | Free Cash Flow | ||||
| -360.63M | -6.00M | 1.58B | -1.09B | 3.81B | 2.96B | Operating Cash Flow |
| 585.00M | 989.16M | 4.57B | 997.12M | 5.30B | 3.76B | Investing Cash Flow |
| -837.72M | -900.93M | -2.00B | -3.34B | -325.73M | -1.48B | Financing Cash Flow |
| 901.28M | -423.37M | -775.79M | -1.09B | -1.88B | -289.59M |
Usiminas Technical Analysis
Negative
0.94
Price Trends
0.98
Negative
0.96
Positive
1.02
Negative
Market Momentum
>-0.01
Negative
48.82
Neutral
47.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USNZY, the sentiment is Negative. The current price of 0.94 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.98, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USNZY.
Usiminas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.50B | 6.87 | 19.79% | ― | -15.93% | 86.43% | |
73 Outperform | $5.51B | 9.80 | 5.86% | 5.02% | -9.33% | -51.03% | |
68 Neutral | $5.40B | 79.32 | 1.78% | 1.52% | -7.93% | -89.29% | |
61 Neutral | $5.58B | 73.52 | -2.75% | 10.91% | -10.20% | -152.18% | |
60 Neutral | $1.19B | 50.48 | 0.50% | 4.81% | -12.27% | -87.71% | |
55 Neutral | $2.11B | ― | -16.28% | 12.93% | -9.84% | -14783.33% | |
50 Neutral | $2.00B | -1.02 | -21.34% | 3.70% | 2.00% | -30.66% |
* Basic Materials Sector Average
Performance Comparison
USNZY
Usiminas
0.94
-0.64
-40.51%
CMC
Commercial Metals Company
46.67
-8.70
-15.71%
GGB
Gerdau SA
2.73
-0.71
-20.64%
SIM
Grupo Simec SA De CV
28.26
-4.49
-13.71%
SID
Companhia Siderúrgica Nacional
1.61
-0.86
-34.82%
TX
Ternium SA
28.02
-11.70
-29.46%
Usiminas Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -12.15%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
Despite strong revenue growth and improved margins, significant challenges remain, particularly regarding high levels of steel imports and uncertainties in the international market, posing risks to sustaining current performance levels.Q1-2025 Updates
Positive Updates
Strong Revenue and Sales Growth
Consolidated revenue increased by 41% compared to the previous quarter, reaching R$773 million with a margin of 11%. Steel sales in the domestic market rose by 4%, and mining sales increased by 11% compared to the same period last year.
Mining Segment Performance
Mining segment achieved R$733 million in revenue with an 11% margin, driven by an 11% increase in sales compared to the previous year, despite challenges like regional rainfall.
Improved EBITDA Margin
The company reported a 9% EBITDA margin, 2.4 percentage points higher than the previous quarter, with a 4% increase in sales volume in the domestic market and a 2% reduction in COGS.
Successful Bond Issuance
Usiminas successfully completed a bond issuance in January with favorable spreads, reflecting a positive market reception.
Negative Updates
Challenges with Steel Imports
A significant concern is the high volume of flat steel imports into Brazil, growing by 42% compared to the same period last year, which threatens domestic production and employment.
Uncertain International Market
Usiminas faces a challenging and uncertain international market, with high volumes of imported steel under uncompetitive conditions impacting domestic consumption.
Risk of Anti-Dumping Measures
Despite evidence of dumping practices by Chinese steel producers, Brazil has not yet applied effective anti-dumping measures, raising concerns for the sustainability of the domestic steel industry.
Working Capital Increase
There was a temporary increase of R$778 million in working capital, which the company expects to revert in the next quarter.
Company Guidance
During the Usiminas conference call to discuss the first quarter of 2025 results, several key metrics and projections were highlighted by the leadership. The company achieved a 41% increase in consolidated revenue, reaching R$773 million, with a margin of 11%. Domestic steel sales grew by 4%, demonstrating resilient demand despite challenges. In the mining segment, sales rose by 11% compared to the previous year, aided by higher quality material extraction. The overall net revenue was R$6.9 million, marking a 6% growth from the previous quarter and a 10% increase from the first quarter of 2024. The EBITDA margin for the steel segment was 9%, up 2.4 percentage points from the previous quarter, with domestic sales volume increasing by 4% and a reduction in COGS by 2%. Usiminas forecasts stable consolidated results for the next quarter, anticipating stable sales volumes and noting potential challenges related to international market uncertainties and increased steel imports. The company remains focused on operational excellence, cost reduction, and maintaining competitiveness in the face of unfair competition from subsidized imports, particularly from China.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.