In a significant development for the North American steel industry, research analysts at Cormark have notably revised their financial outlook for Algoma Steel Group Inc., specifically boosting the FY2026 earnings per share (EPS) estimates for the company. This updated forecast, detailed in a recent research report, signals a renewed sense of optimism surrounding the steel producer’s future profitability and operational efficiency.
Cormark analyst D. Ocampo now projects Algoma Steel Group to achieve $0.64 per share for the fiscal year 2026, marking an upward adjustment from their earlier forecast of $0.58. This revised figure stands in contrast to the broader consensus estimate for the company’s current full-year earnings, which remains at ($0.63) per share, highlighting a divergence in expert opinions regarding the company’s near-term financial trajectory.
The revised Cormark estimates follow a period of varied analyst sentiment concerning Algoma Steel Group. Recent months have seen a mixed bag of recommendations, with some firms, such as BMO Capital Markets, downgrading the company from a “strong-buy” to a “hold” rating, and another firm lowering it from “hold” to “sell.” Conversely, Royal Bank of Canada and Stifel Canada have also adjusted their ratings, reflecting the dynamic nature of stock market analysis within the steel industry sector.
Shares of Algoma Steel Group opened at $5.14, navigating market fluctuations that have seen its 50-day moving average at $6.34 and a 200-day moving average at $6.40. The company’s financial health is further illuminated by its quick ratio of 1.47, a current ratio of 2.46, and a debt-to-equity ratio of 0.47. These metrics provide a snapshot of the firm’s liquidity and leverage, crucial for stakeholders engaged in comprehensive financial reporting.
With a market capitalization of $539.36 million, Algoma Steel Group operates with a price-to-earnings ratio of -2.30 and a beta of 1.65, indicating its volatility relative to the broader market. The company’s stock has experienced a significant range over the past year, with a 52-week low of $4.17 and a 52-week high of $12.14, underscoring the considerable price swings inherent in the commodity-linked steel industry.
In its most recent quarterly earnings estimates announcement on July 29th, Algoma Steel Group reported earnings per share of ($0.74), falling short of the consensus estimate of ($0.45). The business also recorded revenue of $433.14 million for the quarter, missing analysts’ expectations of $577.67 million. This performance resulted in a negative return on equity of 22.24% and a negative net margin of 13.51%, indicating profitability challenges.
Despite recent performance, institutional investors and hedge funds have shown continued interest in Algoma Steel Group, with several entities adjusting their stakes. Firms such as EJF Capital LLC, Aquatic Capital Management LLC, and Aigen Investment Management LP have either acquired new positions or adjusted existing ones. Notably, 72.00% of the stock is currently owned by institutional investors and hedge funds, reflecting significant institutional confidence or strategic positioning in the company.
Algoma Steel Group Inc. is a key player in the production and sale of steel products, primarily serving the North American market. The company’s diverse product portfolio includes flat/sheet steel products, such as temper rolling, cold rolled, and hot-rolled pickled and oiled products, catering to sectors like the automotive, hollow structural product manufacturing, and light manufacturing industries. Additionally, they produce plate steel products for applications in construction, railcars, bridges, and military uses, showcasing their broad reach within the steel industry.
