TimkenSteel (TMST, Financial) is a New York Stock Exchange-traded steel stock taht just hit a new all-time high, and yet it seems to qualify as a value stock. If you thought it was just growth stocks in Silicon Valley that made it to new highs, TimkenSteel is proof that cyclical stocks can still be part of a winning strategy. Lately, value stocks have been on the rise as well.
In business since 1917, the Canton, Ohio-based steel maker is trading with a price-earnings ratio of just 7.21, well below the average price-earnings ratio of the stock market as a whole. In addition, TimkenSteel can purchased relatively cheap, with a price-book ratio of 1.60. The price-sales ratio also suggests value at 0.81, as does the price-to-free-cash-flow ratio at 5.65. The market capitalization is $1.04 billion and the enterprise value is $724.30 million.
The company manufactures alloy steel, including micro-alloy and carbon steel.
The past year's earnings per share were quite good, growing 331.20% year-over-year. Over the past five years, the EPS growth rate is a solid 27.20%.
It’s not expected that this year’s extraordinary results will continue, according to Wall Street analysts. The short float is high at 13.63%; should those shorts be forced to cover, that could fuel a decent rally.
TimkenSteel has no long-term debt. The current ratio is 2.30. The company does not pay a dividend.
The stock price this year has moved from $15 in January to this week’s new high of $22.50 – that’s a significant gain in a very short period of time. Here’s how the TimkenSteel daily price chart looks:
The GuruFocus summary of financials for TimkenSteel finds three good signs, four medium warning signs and one severe warning sign:
This week’s new high indicates how much TimkenSteel investors approve of the company’s recent performance and the potential for future growth as the steel market remains hot.
