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Usinas Siderurgicas de Minas (USNZY)
OTHER OTC:USNZY
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Usiminas
(OTC:USNZY)
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Rating:66Neutral
Price Target:
$1.00
▲(20.48% Upside)
Usiminas receives an overall score of 66, reflecting moderate financial performance with stable revenue growth and a strong equity position. Technical indicators suggest potential for upward movement, while valuation metrics indicate a fair market price. However, challenges in profitability and cash flow management are notable risks.
Usiminas (USNZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.02B
Dividend Yield4.81%
Average Volume (3M)1.11K
Price to Earnings (P/E)15.3
Beta (1Y)0.65
Revenue Growth-10.29%
EPS Growth-39.37%
CountryUS
Employees51,182
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.01
Shares Outstanding547,752,000
10 Day Avg. Volume181
30 Day Avg. Volume1,108
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 Cap1.60
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.75
Enterprise Value/Ebitda0.72
Forecast
1Y Price Target
$1.00Price Target Upside20.48% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 its steel products to various sectors, including automotive, construction, and appliances. The company's revenue model is based on the production and distribution of flat steel products, which are essential components in numerous industries. Key revenue streams include sales from hot and cold rolled steel, galvanized steel, and other specialized steel products. Additionally, Usiminas benefits from long-term contracts and partnerships with major companies in different sectors, which provide a stable source of income. Factors contributing to its earnings include fluctuations in global steel prices, demand from domestic and international markets, and operational efficiencies that help reduce production costs.
Usiminas Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in revenue growth and operational efficiency, with significant gains in the mining segment. However, concerns about unfair competition from imports and ineffective trade defense measures pose challenges to future prospects. While financial metrics were strong, market uncertainties and competitive pressures could impact future performance.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Usiminas achieved a 41% increase in consolidated revenue, reaching R$773 million, with a margin of 11%. This was driven by a 4% increase in steel sales in the domestic market and an 11% increase in mining sales compared to the same period last year.
Strong EBITDA Performance
The company reported an EBITDA margin of 9%, which is 2.4 percentage points above the previous quarter, and a net income of R$337 million. This is the third consecutive quarter of EBITDA margin growth.
Mining Segment Success
Usiminas' mining segment saw a 13% increase in sales volume compared to the same period last year, contributing to a 34% increase in EBITDA, reaching R$206 million with a margin of 22%.
Operational Efficiency Gains
The company achieved a 2% reduction in COGS, with operational efficiencies and reduced fixed costs contributing R$240 million to EBITDA.
Negative Updates
Unfair Competition from Imports
The company expressed significant concerns about the high volume of subsidized steel imports, particularly from China, which has impacted the domestic market. March 2025 saw the third-largest volume of steel imports in history, with a 42% increase in flat steel imports.
Challenges with Trade Defense Measures
Despite identifying dumping practices with significant margins, Brazil has not applied preliminary anti-dumping measures, unlike other countries. The current quota system has been ineffective in controlling imports.
Uncertain Market Conditions
The company faces uncertainties in the second half of 2025 due to high interest rates and global market conditions, which could impact demand and pricing.
Temporary Increase in Working Capital
Working capital increased by R$778 million in the quarter, affecting cash flow. The increase was attributed to higher sales volumes and raw material inventories.
Company Guidance
In the Usiminas first quarter 2025 conference call, the company reported a 41% increase in consolidated revenue to R$773 million with an 11% margin. The sales of steel in the domestic market grew by 4%, and mining sales increased by 11% compared to the previous year. The company achieved a net income of R$337 million, with a net revenue of R$6.9 million, marking a 6% growth from the previous quarter and 10% from the first quarter of 2024. Despite a challenging international market, Usiminas maintains a focus on operational efficiency and cost reduction. The company highlighted concerns over high steel imports and unfair trade practices affecting the Brazilian market, emphasizing the need for effective trade defense measures. Looking ahead, Usiminas expects stable sales volumes but anticipates challenges in the second half of 2025 due to market uncertainties.Usiminas Financial Statement Overview
Summary
Usiminas demonstrates moderate financial health with stable revenue growth and a strong equity position. However, profitability and cash flow management remain areas for improvement. The company should focus on enhancing operational efficiency and cash flow generation to strengthen its financial standing.Income Statement
Usiminas shows a modest gross profit margin of 8.21% and a net profit margin of 1.40% for the TTM, indicating some profitability but with room for improvement. The revenue growth rate of 4.4% from the previous period suggests a positive trend. However, the EBIT and EBITDA margins are relatively low at 4.48% and 9.36%, respectively, indicating potential challenges in operational efficiency.65
Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio of 0.35, reflecting a balanced approach to leveraging. The return on equity is low at 1.56%, suggesting limited profitability from shareholder investments. The equity ratio stands at 59.7%, indicating a strong equity position relative to total assets, which enhances financial stability.70
Positive
Cash Flow
Usiminas faces challenges with a negative free cash flow growth rate of -37.74% and a negative free cash flow to net income ratio of -0.27, indicating cash flow issues. The operating cash flow to net income ratio of 0.19 suggests limited cash generation relative to net income, which could impact liquidity.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.78B | 25.87B | 27.64B | 32.47B | 33.74B | 16.09B |
| Gross Profit | 2.20B | 1.66B | 1.79B | 5.68B | 11.27B | 3.26B |
| EBITDA | 2.29B | 1.81B | 2.92B | 4.77B | 12.25B | 3.77B |
| Net Income | 376.13M | -145.95M | 1.39B | 1.62B | 9.07B | 1.29B |
Balance Sheet | ||||||
| Total Assets | 40.66B | 39.87B | 40.16B | 40.00B | 39.48B | 29.95B |
| Cash, Cash Equivalents and Short-Term Investments | 6.74B | 5.95B | 6.01B | 5.07B | 7.02B | 4.87B |
| Total Debt | 8.47B | 7.76B | 7.60B | 6.32B | 6.38B | 6.03B |
| Total Liabilities | 13.51B | 13.19B | 13.61B | 14.11B | 15.12B | 13.11B |
| Stockholders Equity | 24.28B | 23.88B | 23.86B | 23.16B | 21.75B | 14.87B |
Cash Flow | ||||||
| Free Cash Flow | -224.53M | -6.00M | 1.58B | -1.09B | 3.81B | 2.96B |
| Operating Cash Flow | 823.82M | 989.16M | 4.57B | 997.12M | 5.30B | 3.76B |
| Investing Cash Flow | -919.57M | -900.93M | -2.00B | -3.34B | -325.73M | -1.48B |
| Financing Cash Flow | 1.23B | -423.37M | -775.79M | -1.09B | -1.88B | -289.59M |
Usiminas Technical Analysis
Negative
0.83
Price Trends
0.79
Positive
0.83
Negative
0.89
Negative
Market Momentum
0.01
Positive
52.45
Neutral
12.70
Positive
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 0.83 is below the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.79, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 12.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USNZY.
Usiminas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.57B | 189.11 | 0.90% | 1.23% | -5.64% | -93.26% | |
71 Outperform | $5.97B | 10.94 | 5.95% | 3.49% | -6.55% | -37.93% | |
70 Neutral | $6.77B | 11.57 | -0.45% | 7.83% | -16.83% | ― | |
66 Neutral | $1.02B | 15.34 | 1.52% | 4.81% | -10.29% | -39.37% | |
63 Neutral | $30.27B | 11.23 | 4.59% | 1.31% | -4.51% | ― | |
50 Neutral | $1.97B | -5.07 | -15.90% | 15.19% | -10.77% | -191.87% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
USNZY
Usiminas
0.83
-0.31
-27.19%
MT
ArcelorMittal
36.94
11.10
42.96%
CMC
Commercial Metals Company
58.68
4.50
8.31%
GGB
Gerdau SA
3.07
-0.32
-9.44%
SID
Companhia Siderúrgica Nacional
1.51
-0.77
-33.77%
TX
Ternium SA
34.48
0.77
2.28%
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.