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Usinas Siderurgicas de Minas (USNZY)
OTHER OTC:USNZY
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Usiminas
(OTC:USNZY)
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Rating:55Neutral
Price Target:
$1.00
▼(-9.09% Downside)
Usiminas' overall stock score reflects significant financial challenges, including declining revenue and profitability, negative margins, and cash flow issues. While the earnings call highlighted some operational improvements and strategic focus, the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. Technical analysis shows mixed signals, with short-term bullishness but longer-term bearish trends.
Positive Factors
Strong Cash Generation
Strong cash generation enhances financial flexibility, allowing Usiminas to invest in growth opportunities and manage debt effectively, supporting long-term stability.
Cost Reduction Achievements
Cost reduction efforts improve operational efficiency, enhancing margins and competitiveness, which are crucial for sustaining profitability in a challenging market.
Growth in Mining Segment
Growth in the mining segment diversifies revenue streams and capitalizes on higher prices and volumes, strengthening Usiminas' market position and resilience.
Negative Factors
Declining Revenue
Significant revenue decline indicates market challenges and operational inefficiencies, threatening long-term growth and financial health if not addressed.
Negative Profit Margins
Negative profit margins reflect operational challenges and inefficiencies, which can hinder Usiminas' ability to generate sustainable profits and reinvest in the business.
High Mining Costs
High mining costs reduce profitability and may limit Usiminas' ability to compete effectively, impacting long-term cost efficiency and market competitiveness.
Usiminas (USNZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)1.63K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-8.05%
EPS Growth-435.96%
CountryUS
Employees51,182
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)-0.54
Shares Outstanding547,752,000
10 Day Avg. Volume854
30 Day Avg. Volume1,625
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)0.30
Price to Sales (P/S)0.27
P/FCF Ratio-1.18K
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda4.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 sale of flat steel products, which include hot-rolled, cold-rolled, and coated steel sheets. The company's revenue model is supported by its diverse customer base, which spans several industries such as automotive, construction, and manufacturing. Key revenue streams include direct sales to large industrial clients and distributors, as well as exports to international markets. Additionally, Usiminas benefits from strategic partnerships with other companies in the steel supply chain, which enhance its market reach and operational efficiency. The company also engages in mining activities, producing iron ore, which contributes to its raw material supply and profitability. Factors such as global steel demand, pricing fluctuations, and operational efficiency play a significant role in influencing Usiminas's earnings.
Usiminas Earnings Call Summary
Earnings Call Date:Oct 24, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed view where strong cash generation, cost reduction achievements, and growth in the mining segment were notable positives. However, challenges such as increased imports pressure, impairment impacts on net income, and high costs particularly in the mining segment, present significant hurdles. Despite these challenges, the company maintains a strategic focus on long-term sustainability and competitiveness.Q3-2025 Updates
Positive Updates
Strong Cash Generation
The company reported strong free cash generation of BRL 613 million and a drop in net debt, contributing to a reduced leverage ratio.
Cost Reduction Achievements
A 3% reduction in COGS per ton in the steel business unit compared to the second quarter due to the expense and cost reduction plan.
Growth in Mining Segment
Higher prices and volumes in mining, with net revenue 27% higher than the accumulated revenue of 2024.
Increased Steel Sales Volume
Steel sales volume was higher, at 1.1 million tons, showing resilience in demand despite external pressures.
Positive Operational Improvements
Improvements in main performance indicators, including a consolidated EBITDA increase of 6% over the previous quarter.
Negative Updates
Increased Imports Pressure
Imports increased by 33% in the first 9 months of 2025, affecting the domestic industry. The impact of subsidized imports remains a challenge.
Net Income Impacted by Impairment
Net income did not reflect the operational improvements due to a BRL 3.6 billion accounting effect related to asset impairment and deferred taxes.
Challenging Market Environment
The company faces a complex market environment in Brazil and abroad, with reduced net revenue in the steel segment due to lower prices.
High Mining Costs
The mining segment experienced increased costs due to higher freight tariffs, impacting overall cost efficiency.
Company Guidance
In the third quarter of 2025, Usiminas reported an adjusted EBITDA of BRL 434 million, with a margin of 7%, marking an increase from the previous period despite challenging market conditions. The company achieved a 3% reduction in COGS per ton in its steel business unit and experienced growth in sales volume, amid rising import pressures. Strong cash generation exceeded BRL 600 million, leveraging control over raw material inventories. Net revenue was BRL 6.6 billion, slightly lower due to reduced steel prices, but higher than the previous year, driven by mining performance. Consolidated EBITDA rose by 6% from the prior quarter, with free cash generation reaching BRL 613 million. Usiminas anticipates continued cost reductions and stable net revenues per ton in the fourth quarter, despite expected declines in volume due to typical year-end seasonality. The company remains optimistic about adapting to market challenges, driven by strategic focus and disciplined execution.Usiminas Financial Statement Overview
Summary
Usiminas is facing significant financial challenges, with declining revenue and profitability, negative margins, and cash flow issues. While the balance sheet shows a moderate debt level, the negative return on equity and poor cash flow metrics highlight operational inefficiencies and financial instability. The company needs to address these issues to improve its financial health.Income Statement
Usiminas has experienced a significant decline in revenue and profitability over the TTM period. The gross profit margin is low at 8.42%, and the net profit margin is negative at -12.52%, indicating operational challenges. The EBIT margin is also negative, reflecting inefficiencies. Revenue has decreased by 79.5% compared to the previous period, highlighting a severe downturn.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is moderate at 0.31, suggesting a balanced approach to leveraging. However, the return on equity is negative at -14.30%, indicating poor profitability relative to shareholder equity. The equity ratio stands at 58.79%, showing a solid equity base relative to total assets.60
Neutral
Cash Flow
Free cash flow has declined significantly by 140.57% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is 0.30, suggesting that operating cash flow is not sufficient to cover net losses. The free cash flow to net income ratio is low at 0.08, further emphasizing cash flow issues.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.57B | 25.87B | 27.64B | 32.47B | 33.74B | 16.09B |
| Gross Profit | 2.24B | 1.66B | 1.79B | 5.68B | 11.27B | 3.26B |
| EBITDA | 370.29M | 1.81B | 2.92B | 4.77B | 13.57B | 3.18B |
| Net Income | -3.33B | -145.95M | 1.39B | 1.62B | 9.07B | 1.29B |
Balance Sheet | ||||||
| Total Assets | 35.31B | 39.87B | 40.16B | 40.00B | 39.48B | 29.95B |
| Cash, Cash Equivalents and Short-Term Investments | 6.04B | 5.95B | 6.01B | 5.07B | 7.02B | 4.87B |
| Total Debt | 6.36B | 7.76B | 7.60B | 6.32B | 6.38B | 6.03B |
| Total Liabilities | 11.67B | 13.19B | 13.61B | 14.11B | 15.12B | 13.11B |
| Stockholders Equity | 20.75B | 23.88B | 23.86B | 23.16B | 21.75B | 14.87B |
Cash Flow | ||||||
| Free Cash Flow | 91.10M | -6.00M | 1.58B | -1.09B | 3.81B | 2.96B |
| Operating Cash Flow | 1.18B | 989.16M | 4.57B | 997.12M | 5.30B | 3.76B |
| Investing Cash Flow | -1.13B | -900.93M | -2.00B | -3.34B | -325.73M | -1.48B |
| Financing Cash Flow | -99.38M | -423.37M | -775.79M | -1.09B | -1.88B | -289.59M |
Usiminas Technical Analysis
Positive
1.10
Price Trends
0.94
Positive
0.86
Positive
0.90
Positive
Market Momentum
0.02
Negative
72.80
Negative
88.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USNZY, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.94, and above the 200-day MA of 0.90, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 88.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USNZY.
Usiminas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.40B | 12.88 | 4.80% | 7.02% | -16.69% | 585.38% | |
71 Outperform | $30.80B | 11.38 | 4.72% | 1.09% | -4.51% | ― | |
71 Outperform | $6.71B | 13.55 | 5.21% | 2.99% | -2.53% | -36.08% | |
70 Neutral | $7.06B | 85.65 | 1.99% | 1.13% | -1.61% | -81.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $1.25B | -2.21 | 1.52% | ― | -8.05% | -435.96% | |
54 Neutral | $2.23B | -5.50 | -10.50% | 5.06% | -5.79% | -5.30% |
* Basic Materials Sector Average
USNZY
Usiminas
1.10
0.09
8.91%
MT
ArcelorMittal
43.02
18.58
76.02%
CMC
Commercial Metals Company
65.86
4.54
7.40%
GGB
Gerdau SA
3.67
0.36
10.88%
SID
Companhia Siderúrgica Nacional
1.71
-0.14
-7.57%
TX
Ternium SA
38.44
8.89
30.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.