Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Algoma Steel Group's annualized net income for the quarter that ended in Mar. 2026 was C$-638 Mil. Algoma Steel Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$418 Mil. Therefore, Algoma Steel Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -152.46%.
The historical rank and industry rank for Algoma Steel Group's Return-on-Tangible-Equity or its related term are showing as below:
TSX:ASTL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -124.82 Med: -12.66 Max: 97.81
Current: -124.82
During the past 6 years, Algoma Steel Group's highest Return-on-Tangible-Equity was 97.81%. The lowest was -124.82%. And the median was -12.66%.
TSX:ASTL's Return-on-Tangible-Equity is ranked worse than 98.86% of 614
companies
in the Steel industry
Industry Median: 3.95
vs TSX:ASTL: -124.82
Algoma Steel Group (TSX:ASTL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Algoma Steel Group Return-on-Tangible-Equity Related Terms
Algoma Steel Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Algoma Steel Group's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Algoma Steel Group Return-on-Tangible-Equity Chart
TSX:ASTL vs NUE, STLD, RS: Return-on-Tangible-Equity Comparison
For the Steel subindustry, Algoma Steel Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Algoma Steel Group Return-on-Tangible-Equity vs Steel Industry
For the Steel industry and Basic Materials sector, Algoma Steel Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Algoma Steel Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -152.46% mean?
Algoma Steel Group (TSX:ASTL) has a Return-on-Tangible-Equity of -152.46% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Algoma Steel Group and its competitors. According to the industry distribution chart, Algoma Steel Group ranks #607 out of 614 companies in the Steel industry, placing it in the top 98.9%.
Is Algoma Steel Group's Return-on-Tangible-Equity too high?
Algoma Steel Group's current Return-on-Tangible-Equity is -152.46%. Based on the distribution chart, Algoma Steel Group ranks #607 out of 614 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Algoma Steel Group has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Algoma Steel Group's Return-on-Tangible-Equity compare to NUE and STLD?
According to the Steel industry distribution chart, Algoma Steel Group ranks #607 out of 614 companies for Return-on-Tangible-Equity. This places Algoma Steel Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 3.95. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Steel company?
The median Return-on-Tangible-Equity among Steel companies is 3.95, based on 614 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Algoma Steel Group and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Algoma Steel Group's current Return-on-Tangible-Equity is -152.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Algoma Steel Group stock overvalued right now?
Based on GuruFocus' analysis, Algoma Steel Group (TSX:ASTL) is currently considered Possible Value Trap. The stock's GF Value™ is C$7.82, compared to a current price of C$5.51 — trading 29.5% below its estimated fair value. The current Return-on-Tangible-Equity is -152.46%. Algoma Steel Group's overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Algoma Steel Group (TSX:ASTL), the current Return-on-Tangible-Equity is -152.46% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Algoma Steel Group (TSX:ASTL) Overvalued in 2026?
Based on GuruFocus' analysis, Algoma Steel Group stock appears to be undervalued.
The current stock price of C$5.51 is trading 29.5% below its estimated GF Value™ of C$7.82.
GuruFocus considers Algoma Steel Group to be Possible Value Trap.
Key valuation signals for TSX:ASTL:
Return-on-Tangible-Equity: -152.46%
GF Value™: C$7.82 vs. price of C$5.51 (29.5% below fair value)
No single metric tells the full story. See the TSX:ASTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algoma Steel Group Inc is a fully integrated steel producer of hot and cold rolled steel products, including coiled sheet and plate, strategically located. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from United States. The company generates the majority of its revenue from the sale of Steel sheets and strips.
60GF Score
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